Document:

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                                                                     Exhibit 4.1

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Amgen Nonqualified Deferred Compensation Plan
Plan Document
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                    Nonqualified Deferred Compensation Plan

                           Effective January 1, 2002

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Amgen Nonqualified Deferred Compensation Plan
Plan Document
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                               TABLE OF CONTENTS

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Purpose............................................................................................    1

ARTICLE 1   Definitions............................................................................    1

ARTICLE 2   Selection/Enrollment/Eligibility.......................................................    5

     2.1    Selection by Committee.................................................................    6
     2.2    Enrollment Requirements................................................................    6
     2.3    Eligibility/Commencement of Participation..............................................    6
     2.4    Termination of Participation and/or Deferrals..........................................    6

ARTICLE 3   Deferral Commitments/Company Matching/Crediting/Taxes..................................    6

     3.1    Minimum Deferrals......................................................................    6
     3.2    Maximum Deferrals......................................................................    7
     3.3    Election to Defer/Effect of Election Form..............................................    7
     3.4    Withholding of Annual Deferral Amounts.................................................    8
     3.5    Annual Company Contribution Amount.....................................................    8
     3.6    Vesting................................................................................    8
     3.13   Crediting/Debiting of Account Balances.................................................    9
     3.15   Distribution...........................................................................   10

ARTICLE 4   Short-Term Payout/Unforeseeable Financial Emergencies/Withdrawal Election..............   11

     4.1    Short-Term Payout......................................................................   11
     4.2    Other Benefits Take Precedence Over Short-Term.........................................   11
     4.3    Withdrawal Payout/Suspensions for Unforeseeable Financial Emergencies..................   11
     4.4    Withdrawal Election....................................................................   12

ARTICLE 5   Retirement Benefit.....................................................................   12

     5.1    Retirement Benefit.....................................................................   12
     5.2    Payment of Retirement Benefit..........................................................   12
     5.3    Death Prior to Completion of Retirement Benefit........................................   13

ARTICLE 6   Pre-Retirement Survivor Benefit........................................................   13

     6.1    Pre-Retirement Survivor Benefit........................................................   13
     6.2    Payment of Pre-Retirement Survivor Benefit.............................................   13

ARTICLE 7   Termination Benefit....................................................................   14
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     7.1    Termination Benefit....................................................................   14
     7.2    Payment of Termination Benefit.........................................................   14

ARTICLE 8   Disability Waiver and Benefit..........................................................   14

     8.1    Disability Waiver......................................................................   14
     8.2    Continued Eligibility/Disability Benefit...............................................   14

ARTICLE 9   Beneficiary Designation................................................................   15

     9.1    Beneficiary............................................................................   15
     9.2    Beneficiary Designation Change/Spousal Consent.........................................   15
     9.3    Acknowledgement........................................................................   15
     9.4    No Beneficiary Designation.............................................................   15
     9.5    Doubt as to Beneficiary................................................................   15
     9.6    Discharge of Obligations...............................................................   16

ARTICLE 10  Leave of Absence.......................................................................   16

     10.1   Paid Leave of Absence..................................................................   16
     10.2   Unpaid Leave of Absence................................................................   16

ARTICLE 11  Termination/Amendment or Modification..................................................   16

     11.1   Termination............................................................................   16
     11.2   Amendment..............................................................................   17
     11.3   Plan Agreement.........................................................................   17
     11.4   Effect of Payment......................................................................   17

ARTICLE 12  Administration.........................................................................   17

     12.1   Committee Duties.......................................................................   17
     12.2   Administration Upon Change In Control..................................................   18
     12.3   Agents.................................................................................   18
     12.4   Binding Effect of Decisions............................................................   18
     12.5   Indemnity of Committee.................................................................   18
     12.6   Employer Information...................................................................   19

ARTICLE 13  Other Benefits and Agreements..........................................................   19

     13.1   Coordination with Other Benefits.......................................................   19

ARTICLE 14  Claims Procedures......................................................................   19

     14.1   Presentation of Claim..................................................................   19
     14.2   Notification of Decision...............................................................   19
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     14.3   Review of a Denied Claim...............................................................   20
     14.4   Decision on Review.....................................................................   20
     14.5   Legal Action...........................................................................   20

ARTICLE 15  Trust..................................................................................   21

     15.1   Establishment of the Trust.............................................................   21
     15.2   Interrelationship of the Plan and the Trust............................................   21
     15.3   Distributions From the Trust...........................................................   21
     3.10   Investment of Trust Assets.............................................................   21

ARTICLE 16  Miscellaneous..........................................................................   21

     16.1   Status of Plan.........................................................................   21
     16.2   Unsecured General Creditor.............................................................   22
     16.3   Employer's Liability...................................................................   22
     16.4   Nonassignability.......................................................................   22
     16.5   Not a Contract of Employment...........................................................   22
     16.6   Furnishing Information.................................................................   22
     16.7   Terms..................................................................................   23
     16.8   Captions...............................................................................   23
     16.9   Governing Law..........................................................................   23
     16.10  Notice.................................................................................   23
     16.11  Successors.............................................................................   23
     16.12  Spouse's Interest......................................................................   23
     16.13  Validity...............................................................................   24
     16.14  Incompetent............................................................................   24
     16.15  Court Order............................................................................   24
     16.16  Distribution in the Event of Taxation..................................................   24
     16.17  Insurance..............................................................................   24
     16.18  Legal Fees To Enforce Rights After Change in Control...................................   25
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Amgen Nonqualified Deferred Compensation Plan
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                 AMGEN NONQUALIFIED DEFERRED COMPENSATION PLAN

                           Effective January 1, 2002

                                    Purpose
                                    -------

         The purpose of this Plan is to provide specified benefits to a select
group of management or highly compensated Employees and Directors who contribute
materially to the continued growth, development and future business success of
Amgen, Inc., a Delaware corporation, and its subsidiaries, if any, that sponsor
this Plan. This Plan shall be unfunded for tax purposes and for purposes of
Title I of ERISA.

                                   ARTICLE 1
                                  Definitions
                                  -----------

         For purposes of this Plan, unless otherwise clearly apparent from the
context, the following phrases or terms shall have the following indicated
meanings:

1.1      "Account Balance" shall mean, with respect to a Participant, a credit
         on the records of the Employer equal to the sum of (i) the Deferral
         Account balance and (ii) the vested Company Contribution Account
         balance. The Account Balance, and each other specified account balance,
         shall be a bookkeeping entry only and shall be utilized solely as a
         device for the measurement and determination of the amounts to be paid
         to a Participant, or his or her designated Beneficiary, pursuant to
         this Plan.

1.2      "Annual Base Salary" shall mean the wages, salaries, fees for
         professional services, and other amounts received (without regard to
         whether or not an amount is paid in cash) for personal services
         actually rendered in the course of employment with any Employer to the
         extent that the amounts are includable in gross income (including, but
         not limited to, commissions paid to salespersons, compensation for
         services on the basis of a percentage of profits, commissions on
         reimbursements or other expense allowances under a nonaccountable plan
         (as described in Treasury Regulation Section 1.62-2(c)), but excluding
         any "goods and services allowance" provided to certain expatriate staff
         members. Notwithstanding anything else in the Plan to the contrary,
         Annual Base Salary shall not include the Annual Bonus. Annual Base
         Salary shall be computed without regard to any election to reduce or
         defer salary under the Amgen, Inc. Retirement and Savings Plan or any
         other employee benefit plan, including the cafeteria plan under Section
         125 of the Code. Annual Base Salary shall not include: (a) any Company
         contributions to the Amgen, Inc. Retirement and Savings Plan or any
         other employee benefit plan for or on account of the Employee, except
         as otherwise provided in the preceding sentence or (b) the items
         described in Treasury Regulation Section 1.415-2(d)(3), which, among
         other items, would exclude from compensation amounts realized from the
         exercise of a nonqualified stock option (or when restricted stock (or
         property) held by an Employee either becomes freely transferable or is
         no longer subject to a substantial risk of forfeiture under Section 83
         of the

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         Code) and amounts realized from the sale, exchange or other disposition
         of stock acquired under a qualified stock option.

1.3      "Annual Bonus" shall mean the wages, salaries, fees for professional
         services, and other amounts received (without regard to whether or not
         an amount is paid in cash) for personal services actually rendered in
         the course of employment with any Employer to the extent that the
         amounts are includable in gross income and are paid pursuant to the
         Management Incentive Plan (MIP).

1.4      "Annual Company Contribution Amount" shall mean, for any one Plan Year,
         the amount determined in accordance with Section 3.5.

1.5      "Annual Deferral Amount" shall mean that portion of a Participant's
         Annual Base Salary Annual Bonus and/or Director Fees, as applicable,
         that a Participant elects to have, and is deferred, in accordance with
         Article 3, for any one Plan Year.

1.6      "Annual Installment Method" shall be an annual installment payment over
         the number of years selected by the Participant in accordance with this
         Plan, calculated as follows: The Account Balance of the Participant
         shall be calculated as of the most recent Valuation Date. The annual
         installment shall be calculated by multiplying this balance by a
         fraction, the numerator of which is one, and the denominator of which
         is the remaining number of annual payments due the Participant. By way
         of example, if the Participant elects a 10-year Annual Installment
         Method, the first payment shall be 1/10 of the Account Balance as of
         the most recent Valuation Date. The following year, the payment shall
         be 1/9 of the Account Balance as of the most recent Valuation Date.
         Each annual installment shall be paid on or as soon as practicable
         after the amount is calculated.

1.7      "Beneficiary" shall mean one or more persons, trusts, estates or other
         entities, designated in accordance with Article 9, or entitled under
         Article 9 in the absence of a designation, that are entitled to receive
         benefits under this Plan upon the death of a Participant.

1.8      "Beneficiary Designation Form" shall mean the form established from
         time to time by the Committee that a Participant completes, signs and
         returns to the Committee to designate one or more Beneficiaries.

1.9      "Board" shall mean the board of directors of the Company.

1.10     "Change in Control" shall have the meaning set forth in the Amgen, Inc.
         Change In Control Severance Plan, as it may be amended from time to
         time.

1.11     "Claimant" shall have the meaning set forth in Section 14.1.

1.12     "Code" shall mean the Internal Revenue Code of 1986, as it may be
         amended from time to time.

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1.13     "Committee" shall mean the committee described in Article 12.

1.14     "Company" shall mean Amgen, Inc., and any successor to all or
          substantially all of the Company's assets or business.

1.15     "Company Contribution Account" shall mean (i) the sum of the
         Participant's Annual Company Contribution Amounts, plus (ii) amounts
         credited (net of amounts debited) in accordance with all the applicable
         crediting provisions of this Plan that relate to the Participant's
         Company Contribution Account, less (iii) all distributions made to the
         Participant or his or her Beneficiary pursuant to this Plan that relate
         to the Participant's Company Contribution Account.

1.16     "Deduction Limitation" shall mean the following described limitation on
         a benefit that may otherwise be distributable pursuant to the
         provisions of this Plan. Except as otherwise provided, this limitation
         shall be applied to all distributions that are "subject to the
         Deduction Limitation" under this Plan. If an Employer determines in
         good faith prior to a Change in Control that there is a reasonable
         likelihood that any compensation paid to a Participant for a taxable
         year of the Employer would not be deductible by the Employer solely by
         reason of the limitation under Code Section 162(m), then to the extent
         deemed necessary by the Employer to ensure that the entire amount of
         any distribution to the Participant pursuant to this Plan prior to the
         Change in Control is deductible, the Employer may defer all or any
         portion of a distribution under this Plan. Any amounts deferred
         pursuant to this limitation shall continue to be credited and debited
         with additional amounts in accordance with Section 3.13 below, even if
         such amount is being paid out in installments. The amounts so deferred
         and amounts credited (net of amounts debited) thereon shall be
         distributed to the Participant or his or her Beneficiary (in the event
         of the Participant's death) at the earliest possible date, as
         determined by the Employer in good faith, on which the deductibility of
         compensation paid or payable to the Participant for the taxable year of
         the Employer during which the distribution is made will not be limited
         by Section 162(m), or if earlier, the effective date of a Change in
         Control. Notwithstanding anything to the contrary in this Plan, the
         Deduction Limitation shall not apply to any distributions made after a
         Change in Control.

1.17     "Deferral Account" shall mean (i) the sum of all of a Participant's
         Annual Deferral Amounts, plus (ii) amounts credited (net of amounts
         debited) in accordance with all the applicable provisions of this Plan
         that relate to the Participant's Deferral Account, less (iii) all
         distributions made to the Participant or his or her Beneficiary
         pursuant to this Plan that relate to his or her Deferral Account.

1.18     "Director" shall mean any member of the Board.

1.19     "Director Fees" shall mean the annual fees paid by any Employer,
         including retainer fees and meeting fees, as compensation for serving
         on the Board.

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1.20     "Disability" shall mean that the Participant is determined under Title
         II or XVI of the Social Security Act, to have been disabled. The
         Participant must submit evidence to the Committee of the Social
         Security Administration's determination of disability before a person
         is to be deemed Disabled under this Plan.

1.21     "Disability Benefit" shall mean the benefit set forth in Article 8.

1.22     "Election Form" shall mean the form established from time to time by
         the Committee that a Participant completes, signs and returns to the
         Committee to make an election under the Plan.

1.23     "Employee" shall mean a person whom an Employer classifies as an
         employee.

1.24     "Employer" shall mean the Company or any of its subsidiaries or
         affiliates (now in existence or hereafter formed or acquired) that have
         been selected by the Board to participate in the Plan and have adopted
         the Plan by permitting their Employees to participate in the Plan.

1.25     "ERISA" shall mean the Employee Retirement Income Security Act of 1974,
         as it may be amended from time to time.

1.26     "401(k) Plan" shall be that certain Amgen Inc. Retirement and Savings
         Plan adopted by the Company, as it may be amended from time to time.

1.27     "Participant" shall mean any Employee (i) who is selected by the
         Committee from among the highly compensated or management employees of
         the Employer to participate in the Plan, (ii) who elects to participate
         in the Plan, (iii) who signs a Plan Agreement, an Election Form and a
         Beneficiary Designation Form, (iv) whose signed Plan Agreement,
         Election Form and Beneficiary Designation Form are accepted by the
         Committee, (v) who commences participation in the Plan, and (vi) whose
         Plan Agreement has not terminated. A spouse or former spouse of a
         Participant shall not be treated as a Participant in the Plan or have
         an account balance under the Plan, even if he or she has an interest in
         the Participant's benefits under the Plan as a result of applicable law
         or property settlements resulting from legal separation or divorce.

1.28     "Plan" shall mean the AMGEN NONQUALIFIED DEFERRED COMPENSATION PLAN,
         effective January 1, 2002, which shall be evidenced by this instrument
         and by each Plan Agreement, as they may be amended from time to time.

1.29     "Plan Agreement" shall mean a written agreement, as may be amended from
         time to time, which is entered into by and between an Employer and a
         Participant. Each Plan Agreement executed by a Participant and the
         Participant's Employer shall provide for the entire benefit to which
         such Participant is entitled under the Plan; should there be more than
         one Plan Agreement, the Plan Agreement bearing the latest date of
         acceptance by the Employer shall supersede all previous Plan Agreements
         in their entirety and shall govern such entitlement. The terms of any
         Plan Agreement may be different for any Participant, and any Plan

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         Agreement may provide additional benefits not set forth in the Plan or
         limit the benefits otherwise provided under the Plan; provided,
         however, that any such additional benefits or benefit limitations must
         be agreed to by both the Employer and the Participant.

1.30     "Plan Year" shall mean a period beginning on January 1 of each calendar
         year (beginning January 1, 2002), and continuing through December 31 of
         such calendar year.

1.31     "Pre-Retirement Survivor Benefit" shall mean the benefit set forth in
         Article 6.

1.32     "Retirement", "Retire(s)" or "Retired" shall mean, with respect to an
         Employee, severance from employment from all Employers for any reason
         other than death or Disability at such time as the Employee is at least
         sixty (60) years old.

1.33     "Retirement Benefit" shall mean the benefit set forth in Article 5.

1.34     "Short-Term Payout" shall mean the payout set forth in Section 4.1.

1.35     "Termination Benefit" shall mean the benefit set forth in Article 7.

1.36     "Termination" shall mean the severing of employment with all
         Employers, voluntarily or involuntarily, for any reason other than
         Retirement, Disability or death. Termination of Employment shall not be
         deemed to occur, however, upon the transfer of a Participant from the
         employ of the Company or another Employer to the employ of any
         subsidiary or affiliate, regardless of whether that subsidiary or
         affiliate is an Employer under the Plan.

1.37     "Trust" shall mean one or more trusts established pursuant to that
         certain Trust Agreement, dated as of _____ 1, 2002 between the Company
         and the trustee named therein, as amended from time to time.

1.38     "Unforeseeable Financial Emergency" shall mean an unanticipated
         emergency that is caused by an event beyond the control of the
         Participant that would result in severe financial hardship to the
         Participant resulting from (i) a sudden and unexpected illness or
         accident of the Participant or a dependent of the Participant, (ii) a
         loss of the Participant's property due to casualty, or (iii) another
         extraordinary and unforeseeable circumstance arising as a result of
         events beyond the control of the Participant, all as determined in the
         sole discretion of the Committee.

1.39     "Valuation Date" shall mean the last day of each Plan Year or any other
         date as of which the Committee, in its sole discretion, designates as a
         Valuation Date.

1.40     "Years of Service" shall mean each Plan Year or portion thereof during
         which an Employee is credited with at least 1000 hours of service.

                                   ARTICLE 2
                       Selection/Enrollment/Eligibility
                       --------------------------------

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2.1      Selection by Committee. Participation in the Plan shall be limited to a
         ----------------------
         select group of Employees and Directors of the Employers, each of whom
         is a member of management or is highly compensated. From the group of
         Employees who are management or highly compensated, the Committee shall
         select, in its sole discretion, Employees and Directors to participate
         in the Plan.

2.2      Enrollment Requirements. As a condition to participation, each selected
         -----------------------
         Employee shall complete, execute and return to the Committee a Plan
         Agreement, an Election Form and a Beneficiary Designation Form, all
         within the number of days specified by the Committee after he or she is
         selected to participate in the Plan. In addition, the Committee may
         establish from time to time such other enrollment requirements as it
         determines in its sole discretion are necessary.

2.3      Eligibility/Commencement of Participation. Provided an Employee
         -----------------------------------------
         selected to participate in the Plan has met all enrollment requirements
         set forth in this Plan and required by the Committee, including
         returning all required documents to the Committee within the specified
         time period, that Employee shall commence participation in the Plan on
         the first day of the month following the month in which the Employee
         completes all enrollment requirements or such other date specified by
         the Committee.

2.4      Termination of Participation and/or Deferrals. If the Committee
         ---------------------------------------------
         determines in good faith that a Participant no longer qualifies as a
         member of a select group of management or highly compensated employees,
         as membership in such group is determined in accordance with Sections
         201(2), 301(a)(3) and 401(a)(1) of ERISA, the Committee shall have the
         right, in its sole discretion, to (i) terminate any deferral election
         the Participant has made for the remainder of the Plan Year in which
         the Participant's membership status changes, and (ii) prevent the
         Participant from making future deferral elections or, in the
         Committee's discretion, may also (iii) immediately distribute the
         Participant's then Account Balance as a Termination Benefit and
         terminate the Participant's participation in the Plan.

                                   ARTICLE 3
             Deferral Commitments/Company Matching/Crediting/Taxes
             -----------------------------------------------------

3.1      Minimum Deferrals.
         -----------------

         (a)   Annual Base Salary and Annual Bonus. For each Plan Year, a
               -----------------------------------
               Participant may elect to defer, as his or her Annual Deferral
               Amount, Annual Base Salary or Annual Bonus, or both, in the
               following minimum amounts for each deferral elected:

                 ---------------------------------------------
                       Deferral              Minimum Amount
                 ---------------------------------------------
                   Annual Base Salary
                   and/or Annual Bonus           $2,000
                 ---------------------------------------------

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          If an election is made for less than stated minimum amounts, or if no
          election is made, the amount deferred shall be zero.

     (b)  Short Plan Year. Notwithstanding the foregoing, if a Participant first
          ---------------
          becomes a Participant after the first day of a Plan Year, the minimum
          Annual Base Salary deferral shall be an amount equal to the minimum
          set forth above, multiplied by a fraction, the numerator of which is
          the number of complete months remaining in the Plan Year and the
          denominator of which is 12.

3.2  Maximum Deferrals.
     -----------------

     (a)  Annual Base Salary Annual Bonus and Director Fees. For each Plan Year,
          -------------------------------------------------
          a Participant may elect to defer, as his or her Annual Deferral
          Amount, Annual Base Salary and Annual Bonus up to the following
          maximum percentages for each deferral elected:

                 ---------------------------------------------
                     Deferral           Maximum Percentage
                 ---------------------------------------------
                  Annual Base Salary            50%
                 ---------------------------------------------
                    Annual Bonus               100%
                 ---------------------------------------------
                    Director Fees              100%
                 ---------------------------------------------
     (b)  Notwithstanding the foregoing, if a Participant first becomes a
          Participant after the first day of a Plan Year, the maximum Annual
          Deferral Amount, with respect to Annual Base Salary and Annual Bonus
          shall be based on the amount of compensation not yet earned by the
          Participant as of the date the Participant submits a Plan Agreement
          and an Election Form to the Committee for acceptance.

3.3  Election to Defer/Effect of Election Form.
     -----------------------------------------

     (a)  First Plan Year of Participation. Within thirty (30) days after being
          --------------------------------
          designated by the Committee for participation in the Plan, the
          Participant shall make an irrevocable deferral election for the Plan
          Year in which the Participant commences participation, along with such
          other elections as the Committee deems necessary or desirable under
          the Plan. For these elections to be valid, the Election Form must be
          completed and signed by the Participant, timely delivered to the
          Committee (in accordance with Section 2.2 above) and accepted by the
          Committee.

     (b)  Subsequent Plan Years. For each succeeding Plan Year, an irrevocable
          ---------------------
          deferral election for that Plan Year, and such other elections as the
          Committee deems necessary or desirable under the Plan, shall be made
          by timely delivering to the Committee, in accordance with its rules
          and procedures, before the end of the Plan Year preceding the

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          Plan Year for which the election is made, a new Election Form. If no
          such Election Form is timely delivered for a Plan Year, the Annual
          Deferral Amount shall be zero for that Plan Year.

3.4  Withholding of Annual Deferral Amounts. For each Plan Year, for each
     --------------------------------------
     Participant, the Annual Base Salary portion of the Annual Deferral Amount
     shall be withheld on a ratable basis, to the extent possible, from each
     regularly scheduled Annual Base Salary payroll. The Annual Bonus portion of
     the Annual Deferral Amount shall be withheld, to the extent possible, at
     the time the Annual Bonus is or otherwise would be paid to the Participant,
     whether or not this occurs during the Plan Year itself.

3.5  Annual Company Contribution Amount. For each Plan Year, an Employer, in its
     ----------------------------------
     sole discretion, may, but is not required to, credit any amount it desires
     to any Participant's Company Contribution Account under this Plan, which
     amount shall be for that Participant the Annual Company Contribution Amount
     for that Plan Year. The amount so credited to a Participant may be smaller
     or larger than the amount credited to any other Participant, and the amount
     credited to any Participant for a Plan Year may be zero, even though one or
     more other Participants receive an Annual Company Contribution Amount for
     that Plan Year. The Annual Company Contribution Amount, if any, shall be
     credited as of the date determined by the Committee in its sole discretion.
     If a Participant is not employed by an Employer as of the last day of a
     Plan Year for a reason other than his or her Retirement or death while
     employed, the Annual Company Contribution Amount for that Plan Year shall
     be zero.

3.6  Vesting.
     -------

     (a)  A Participant shall at all times be 100% vested in his or her Deferral
          Account.

     (b)  A Participant shall be vested in his or her Company Contribution
          Account in accordance with the vesting schedules established by the
          Committee, in its sole and absolute discretion, for each Annual
          Company Contribution Amount (and amounts credited or debited thereon)
          at the time each such Annual Company Contribution Amount is first
          credited to the Participant's Account Balance under the Plan. The
          vesting schedules established by the Committee for each Annual Company
          Contribution Amount may be different for different Participants.

     (c)  Notwithstanding anything in this Section to the contrary, except as
          provided in subsection (d) below, in the event of a Change in Control,
          a Participant's Company Contribution Account shall immediately become
          100% vested (without regard to whether it is already vested in
          accordance with the above vesting schedules).

     (d)  Except as otherwise provided by written agreement between a
          Participant and his/her Employer, notwithstanding anything in this
          Section or the Plan to the contrary, the vesting schedule for a
          Participant's Company Contribution Account shall not be accelerated to
          the extent that the Committee determines that such acceleration would

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          cause the deduction limitations of Section 280G of the Code to become
          effective. In the event that any portion of a Participant's Company
          Contribution Account is not vested pursuant to such a determination,
          the Participant may request independent verification of the
          Committee's calculations with respect to the application of Section
          280G. In such case, the Committee must provide to the Participant
          within 15 business days of such a request an opinion from a nationally
          recognized accounting firm selected by the Participant (the
          "Accounting Firm"), to the effect that, in the Accounting Firm's
          opinion that any limitation in the vested percentage hereunder is
          necessary to avoid the limits of Section 280G, and containing
          supporting calculations, or, in the absence of such an opinion, shall
          cause the relevant portion of the Participant's Company Contribution
          Account to become vested. The cost of such opinion shall be paid for
          by the Company.

3.7  Crediting/Debiting of Account Balances. In accordance with, and subject to,
     --------------------------------------
     the rules and procedures that are established from time to time by the
     Committee, in its sole discretion, amounts shall be credited or debited to
     a Participant's Account Balance in accordance with the following rules:

     (a)  Election of Measurement Funds. A Participant, in connection with his
          -----------------------------
          or her initial deferral election in accordance with Section 3.3(a)
          above, shall elect, on the Election Form, one or more Measurement
          Fund(s) to be used to determine the additional amounts to be credited
          to his or her Account Balance for the first business day in which the
          Participant commences participation in the Plan and continuing
          thereafter for each subsequent day in which the Participant
          participates in the Plan, unless changed in accordance with the next
          sentence. Commencing with the first business day that follows the
          Participant's commencement of participation in the Plan and continuing
          thereafter for each subsequent day in which the Participant
          participates in the Plan, the Participant may (but is not required to)
          elect, by submitting an Election Form to the Committee that is
          accepted by the Committee, to add or delete one or more Measurement
          Fund(s) to be used to determine the additional amounts to be credited
          to his or her Account Balance, or to change the portion of his or her
          Account Balance allocated to each previously or newly elected
          Measurement Fund. If an election is made in accordance with the
          previous sentence, it shall apply to the next business day and
          continue thereafter for each subsequent day in which the Participant
          participates in the Plan, unless changed in accordance with the
          previous sentence.

     (b)  Proportionate Allocation. In making any election described in Section
          ------------------------
          3.7(a) above, the Participant shall specify on the Election Form, in
          increments of five percentage points (5%), the percentage of his or
          her Account Balance to have gains and losses measured by a Measurement
          Fund.

     (c)  Measurement Funds. From time to time, the Committee in its sole
          -----------------
          discretion shall select and announce to Participants its selection of
          mutual funds, insurance company separate accounts, indexed rates or
          other methods (each, a "Measurement Fund"), for the purpose of
          providing the basis on which gains and losses shall be attributed to

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          Account Balances under the Plan. The Committee may, in its sole
          discretion, discontinue, substitute or add a Measurement Fund at any
          time. Each such action will take effect as of the first day of the
          calendar quarter that follows by thirty (30) days the day on which the
          Committee gives Participants advance written notice of such change.

     (d)  Crediting or Debiting Method. The performance of each elected
          ----------------------------
          Measurement Fund (either positive or negative) will be determined by
          the Committee, in its reasonable discretion, based on available
          reports of the performance of the Measurement Funds. A Participant's
          Account Balance shall be credited or debited on a daily basis based on
          the performance of each Measurement Fund selected by the Participant,
          as determined by the Committee in its sole discretion, as though (i) a
          Participant's Account Balance were invested in the Measurement Fund(s)
          selected by the Participant, in the percentages applicable to such
          day, as of the close of business on such day, at the closing price on
          such date; (ii) the portion of the Annual Deferral Amount that was
          actually deferred during any day were invested in the Measurement
          Fund(s) selected by the Participant, in the percentages applicable to
          such day, no later than the close of business on the first business
          day after the day on which such amounts are actually deferred from the
          Participant's Annual Base Salary through reductions in his or her
          payroll and from the Participant's Annual Bonus, at the closing price
          on such date; and (iii) any distribution made to a Participant that
          decreases such Participant's Account Balance ceased being invested in
          the Measurement Fund(s), in the percentages applicable to such day, no
          later than one business day prior to the distribution, at the closing
          price on such date.

     (e)  No Actual Investment. Notwithstanding any other provision of this Plan
          --------------------
          that may be interpreted to the contrary, the Measurement Funds are to
          be used for measurement purposes only, and a Participant's election of
          any such Measurement Fund, the allocation to his or her Account
          Balance thereto, the calculation of additional amounts and the
          crediting or debiting of such amounts to a Participant's Account
          Balance shall not be considered or construed in any manner as an
          actual investment of his or her Account Balance in any such
          Measurement Fund. In the event that the Company or the Trustee (as
          that term is defined in the Trust), in its own discretion, decides to
          invest funds in any or all of the Measurement Funds, no Participant
          shall have any rights in or to such investments themselves. Without
          limiting the foregoing, a Participant's Account Balance shall at all
          times be a bookkeeping entry only and shall not represent any
          investment made on his or her behalf by the Company or the Trust; the
          Participant shall at all times remain an unsecured creditor of the
          Company.

3.8  Distributions. The Participant's Employer(s), or the trustee of the Trust,
     -------------
     shall withhold from any payments made to a Participant under this Plan all
     federal, state and local income, employment and other taxes required to be
     withheld by the Employer(s), or the trustee of the Trust, in connection
     with such payments, in amounts and in a manner to be determined in the sole
     discretion of the Employer(s) and the trustee of the Trust, respectively
     (whichever is making the payment). The Participant's Employer, or the
     trustee of the Trust, shall withhold from any payments made to a
     Participant under this Plan any garnishment of wages in amounts

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     and in a manner to be determined by the sole discretion of the Employer(s)
     and the trustee of the Trust, respectively (whichever is making the
     payment).

3.9  Adjustment of Annual Deferral Amount. The Committee shall have the
     ------------------------------------
     authority to reduce, without the Participant's consent, the Annual Deferral
     Amount and/or the Annual Company Contribution Amount, to the extent
     necessary to comply with applicable tax withholding obligations,
     garnishments or court-mandated payments, or Participant-authorized
     deferrals payments or contributions.

                                   ARTICLE 4
            Short-Term Payout/Unforeseeable Financial Emergencies/
            ------------------------------------------------------
                              Withdrawal Election
                              -------------------

4.1  Short-Term Payout. In connection with each election to defer an Annual
     -----------------
     Deferral Amount, a Participant may irrevocably elect to receive a future
     "Short-Term Payout" from the Plan with respect to such Annual Deferral
     Amount. Subject to the Deduction Limitation, the Short-Term Payout shall be
     a lump sum payment in an amount that is equal to the Annual Deferral (or a
     specified portion thereof) plus amounts credited or debited in the manner
     provided in Section 3.7 above on that amount, determined at the time that
     the Short-Term Payout becomes payable (rather than the date of a
     Termination of Employment) or, alternatively if so elected by the
     Participant, a fixed stated sum, up to the total Account. Subject to the
     Deduction Limitation and the other terms and conditions of this Plan, each
     Short-Term Payout elected shall be paid out during a 60 day period
     commencing immediately after the last day of any Plan Year designated by
     the Participant that is at least three Plan Years after the Plan Year in
     which the Annual Deferral Amount is actually deferred.

4.2  Other Benefits Take Precedence Over Short-Term Payout. Should an event
     -----------------------------------------------------
     occur that triggers a benefit under Article 5, 6, 7 or 8, any Annual
     Deferral Amount, plus amounts credited or debited thereon, that is subject
     to a Short-Term Payout election under Section 4.1 shall not be paid in
     accordance with Section 4.1 but shall be paid in accordance with the other
     applicable Article.

4.3  Withdrawal Payout/Suspensions for Unforeseeable Financial Emergencies. If
     ---------------------------------------------------------------------
     the Participant experiences an Unforeseeable Financial Emergency, the
     Participant may petition the Committee to (i) suspend any deferrals
     required to be made by a Participant or (ii) receive a partial or full
     payout from the Plan. The payout shall not exceed the lesser of the
     Participant's Account Balance, calculated as if such Participant were
     receiving a Termination Benefit, or the amount reasonably needed to satisfy
     the Unforeseeable Financial Emergency. If, subject to the sole discretion
     of the Committee, the petition for a suspension and/or payout is approved,
     suspension shall take effect upon the date of approval and any payout shall
     be made within 60 days of the date of approval. The payment of any amount
     under this Section 4.3 shall not be subject to the Deduction Limitation.

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4.4  Withdrawal Election. A Participant (or, after a Participant's death, his or
     -------------------
     her Beneficiary) may elect, at any time, to withdraw a portion or all of
     his or her Account Balance, calculated as if there had occurred a
     Termination of Employment as of the day of the election, less a withdrawal
     penalty equal to 10% of the amount withdrawn (the net amount shall be
     referred to as the "Withdrawal Amount"). Notwithstanding anything in this
     Section or the Plan to the contrary, to the extent a Participant elects to
     withdraw a portion or all of his or her Account Balance pursuant to this
     Section, the Participant may not defer any of his or her Annual Salary
     Annual Bonus or Director Fees for the remainder of the Plan Year in which
     the withdrawal is taken and for the next full Plan Year. This election can
     be made at any time, before or after Retirement, Disability, death or
     Termination of Employment, and whether or not the Participant (or
     Beneficiary) is in the process of being paid pursuant to an installment
     payment schedule. If made before Retirement, Disability or death, a
     Participant's Withdrawal Amount shall be based on his or her Account
     Balance calculated as if there had occurred a Termination of Employment as
     of the day of the election. Notwithstanding anything in this Section or the
     Plan to the contrary, a Participant may not elect a Withdrawal Amount less
     than $5,000. The Participant (or his or her Beneficiary) shall make this
     election by giving the Committee advance written notice of the election in
     a form determined from time to time by the Committee. The Participant (or
     his or her Beneficiary) shall be paid the Withdrawal Amount within 60 days
     of his or her election and the Participant's Account shall concurrently be
     reduced by the Withdrawal Amount plus the 10% penalty. The payment of this
     Withdrawal Amount shall not be subject to the Deduction Limitation.

                                   ARTICLE 5
                              Retirement Benefit
                              ------------------

5.1  Retirement Benefit. Subject to the Deduction Limitation, a Participant who
     ------------------
     Retires shall receive, as a Retirement Benefit, his or her Account Balance.

5.2  Payment of Retirement Benefit. A Participant, in connection with his or her
     -----------------------------
     commencement of participation in the Plan, shall elect on an Election Form
     the form in which the Retirement Benefit will be paid, if that benefit
     becomes payable under the terms of the Plan, which form shall be a lump sum
     or an Annual Installment Method of not more than ten (10) years. The
     Participant may change his or her election to an allowable alternative
     payout period by submitting a new Election Form to the Committee; provided,
     however, the last Election Form that is submitted at least 1 year prior to
     the Participant's Retirement and is accepted by the Committee in its sole
     discretion shall be the governing Election Form as to this matter. If a
     Participant does not make any election with respect to the payment of the
     Retirement Benefit, then such benefit shall be payable in a lump sum. The
     lump sum payment shall be made, or installment payments shall commence, no
     later than 60 days after the Participant Retires. Any payment made shall be
     subject to the Deduction Limitation. Notwithstanding anything in this
     Section or the Plan to the contrary, but subject to the Deduction
     Limitation, the Retirement Benefit paid pursuant to a Participant's elected
     Annual Installment Method shall be paid in the

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     number of annual installments elected by the Participant; provided,
     however, the annual installments shall not exceed the lesser of the
     Participant's Years of Service or ten (10) years.

5.3  Death Prior to Completion of Retirement Benefit. If a Participant dies
     -----------------------------------------------
     after Retirement but before the Retirement Benefit is paid in full, the
     Participant's unpaid Retirement Benefit payments shall continue and shall
     be paid to the Participant's Beneficiary (a) over the remaining number of
     years and in the same amounts as that benefit would have been paid to the
     Participant had the Participant survived, or (b) in a lump sum, if
     requested by the Beneficiary and allowed in the sole discretion of the
     Committee, that is equal to the Participant's unpaid remaining Account
     Balance.

                                   ARTICLE 6
                        Pre-Retirement Survivor Benefit
                        -------------------------------

6.1  Pre-Retirement Survivor Benefit. Subject to the Deduction Limitation, the
     -------------------------------
     Participant's Beneficiary shall receive a Pre-Retirement Survivor Benefit
     equal to the Participant's Account Balance if the Participant dies before
     he or she Retires, experiences a Termination of Employment or suffers a
     Disability.

6.2  Payment of Pre-Retirement Survivor Benefit. A Participant, in connection
     ------------------------------------------
     with his or her commencement of participation in the Plan, shall elect on
     an Election Form whether the Pre-Retirement Survivor Benefit shall be
     received by his or her Beneficiary in a lump sum or pursuant to an Annual
     Installment Method of up to ten (10) years. The Participant may annually
     change this election to an allowable alternative payout period by
     submitting a new Election Form to the Committee, which form must be
     accepted by the Committee in its sole discretion. The Election Form most
     recently accepted by the Committee prior to the Participant's death shall
     govern the payout of the Participant's Pre-Retirement Survivor Benefit. If
     a Participant does not make any election with respect to the payment of the
     Pre-Retirement Survivor Benefit, then such benefit shall be paid in a lump
     sum. Notwithstanding the foregoing, if the Participant's Account Balance at
     the time of his or her death is less than $25,000, payment of the Pre-
     Retirement Survivor Benefit may be made, in the sole discretion of the
     Committee, in a lump sum or pursuant to an Annual Installment Method of not
     more than 5 years. The lump sum payment shall be made, or installment
     payments shall commence, no later than 60 days after the Committee is
     provided with proof that is satisfactory to the Committee of the
     Participant's death.

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                                    ARTICLE 7
                               Termination Benefit
                               -------------------

7.1      Termination Benefit. Subject to the Deduction Limitation, the
         -------------------
         Participant shall receive a Termination Benefit, which shall be equal
         to the Participant's Account Balance if a Participant experiences a
         Termination of Employment prior to his or her Retirement, death or
         Disability.

7.2      Payment of Termination Benefit. The Termination Benefit shall be paid
         ------------------------------
         to the Participant in a lump sum. Notwithstanding anything in this
         Section or the Plan to the contrary, a Participant may request that the
         Company pay the lump sum payment or commence the installment payments
         60 days after the end of the Plan Year in which the Participant
         terminates his or her employment. The Committee may, in its sole
         discretion, accept or reject such a request from a Participant.

                                   ARTICLE 8
                         Disability Waiver and Benefit
                         -----------------------------

8.1      Disability Waiver.
         -----------------

         (a)   Waiver of Deferral. A Participant who is determined by the
               ------------------
               Committee to be suffering from a Disability shall (i) have no
               further deferrals of the Annual Deferral Amount that would
               otherwise have been withheld from a Participant's Annual Base
               Salary Annual Bonus or Director Fees for the Plan Year during
               which the Participant first suffers a Disability. During the
               period of Disability, the Participant shall not be allowed to
               make any additional deferral elections, but will continue to be
               considered a Participant for all other purposes of this Plan.

         (b)   Return to Work. If a Participant returns to employment with an
               --------------
               Employer, after a Disability ceases, the Participant may elect to
               defer an Annual Deferral Amount for the Plan Year following his
               or her return to employment or service and for every Plan Year
               thereafter while a Participant in the Plan; provided such
               deferral elections are otherwise allowed and an Election Form is
               delivered to and accepted by the Committee for each such election
               in accordance with Section 3.3 above.

8.2      Continued Eligibility/Disability Benefit. A Participant suffering a
         ----------------------------------------
         Disability shall, for benefit purposes under this Plan, continue to be
         considered to be employed and shall be eligible for the benefits
         provided for in Articles 4, 5, 6 or 7 in accordance with the provisions
         of those Articles. Notwithstanding the foregoing, the Committee shall
         have the right to, in its sole and absolute discretion, deem the
         Participant to have experienced a Termination of Employment, or in the
         case of a Participant who is eligible to Retire, to have Retired, at
         any time after such Participant is determined to be suffering a
         Disability, in which case the Participant shall receive a Disability
         Benefit equal to his or her Account Balance at the time of the
         Committee's determination; provided, however, that should the
         Participant otherwise have been eligible to Retire, he or she shall be
         paid in accordance with Article 5 as though the Participant Retired.

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         The Disability Benefit shall be paid in a lump sum within 60 days of
         the Committee's exercise of such right. Any payment made shall be
         subject to the Deduction Limitation.

                                   ARTICLE 9
                            Beneficiary Designation
                            -----------------------

9.1      Beneficiary. Each Participant shall have the right, at any time, to
         -----------
         designate his or her Beneficiary(ies) (both primary and contingent) to
         receive any benefits payable under the Plan to a beneficiary upon the
         death of a Participant. The Beneficiary designated under this Plan may
         be the same as or different from the Beneficiary designation under any
         other plan of an Employer in which the Participant participates.

9.2      Beneficiary Designation Change/Spousal Consent. A Participant shall
         ----------------------------------------------
         designate his or her Beneficiary by completing and signing the
         Beneficiary Designation Form, and returning it to the Committee or its
         designated agent. A Participant shall have the right to change a
         Beneficiary by completing, signing and otherwise complying with the
         terms of the Beneficiary Designation Form and the Committee's rules and
         procedures, as in effect from time to time. A Participant may name
         someone other than his or her spouse as a Beneficiary only if a spousal
         consent, in the form designated by the Committee, is signed by that
         Participant's spouse and returned to the Committee. Upon the acceptance
         by the Committee of a new Beneficiary Designation Form, all Beneficiary
         designations previously filed shall be canceled. The Committee shall be
         entitled to rely on the last Beneficiary Designation Form filed by the
         Participant and accepted by the Committee prior to his or her death.
         Notwithstanding anything in this Section or the Plan to the contrary, a
         Participant's designation of a spouse as a Beneficiary shall
         automatically be cancelled and revoked on the date a Participant's
         divorce from that spouse becomes final.

9.3      Acknowledgment.  No designation or change in designation of a
         --------------
         Beneficiary  shall be effective until received and  acknowledged in
         writing by the Committee or its designated agent.

9.4      No Beneficiary Designation. If a Participant fails to designate a
         --------------------------
         Beneficiary as provided in Sections 9.1, 9.2 and 9.3 above or, if all
         designated Beneficiaries predecease the Participant or die prior to
         complete distribution of the Participant's benefits, then the
         Participant's designated Beneficiary shall be deemed to be his or her
         surviving spouse. If the Participant has no surviving spouse, the
         Participant's designated Beneficiary shall be deemed to be the
         Participant's estate.

9.5      Doubt as to Beneficiary. If the Committee has any doubt as to the
         -----------------------
         proper Beneficiary to receive payments pursuant to this Plan, the
         Committee shall have the right, exercisable in its discretion, to cause
         the Company to withhold such payments until this matter is resolved to
         the Committee's satisfaction.

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9.6      Discharge of Obligations. The payment of benefits under the Plan to a
         ------------------------
         Beneficiary shall fully and completely discharge all Employers and the
         Committee from all further obligations under this Plan with respect to
         the Participant, and that Participant's Plan Agreement shall terminate
         upon such full payment of benefits.

                                  ARTICLE 10
                               Leave of Absence
                               ----------------

10.1     Paid Leave of Absence. If a Participant is authorized by the
         ---------------------
         Participant's Employer for any reason to take a paid leave of absence
         from the employment of the Employer, the Participant shall continue to
         be considered employed by the Employer and the Annual Deferral Amount
         shall continue to be withheld during such paid leave of absence in
         accordance with Article 3.

10.2     Unpaid Leave of Absence. If a Participant is authorized by the
         -----------------------
         Participant's Employer for any reason to take an unpaid leave of
         absence from the employment of the Employer, the Participant shall
         continue to be considered employed by the Employer and deferrals shall
         not be made, in the absence of compensation. Upon such expiration of
         the unpaid leave and resumption of entitlement to compensation,
         deferrals shall resume for the remaining portion of the Plan Year in
         which the return occurs, based on the deferral election, if any, made
         for that Plan Year. If no election was made for that Plan Year, no
         deferral shall be withheld.

                                   ARTICLE 11
                      Termination/Amendment or Modification
                      -------------------------------------

11.1     Termination. Although the Company anticipates that it will continue the
         -----------
         Plan for an indefinite period of time, there is no guarantee that the
         Company will continue the Plan or will not terminate the Plan at any
         time in the future. Accordingly, the Company reserves the right to
         discontinue its sponsorship of the Plan and to terminate the Plan at
         any time with respect to any or all of its participating Employees and
         Directors, by action of its Board of Directors. Upon the termination of
         the Plan, the Plan Agreements of the affected Participants shall
         terminate and their Account Balances, determined as if they had
         experienced a Termination of Employment on the date of Plan termination
         or, if Plan termination occurs after the date upon which a Participant
         was eligible to Retire, then with respect to that Participant as if he
         or she had Retired on the date of Plan termination, shall be paid to
         the Participants as follows: Prior to a Change in Control, if the Plan
         is terminated with respect to all of its Participants, the Company
         shall have the right, in its sole discretion, and notwithstanding any
         elections made by the Participant, to pay such benefits in a lump sum
         or pursuant to an Annual Installment Method of up to ten (10) years,
         with amounts credited and debited during the installment period as
         provided herein. Prior to a Change in Control, if the Plan is
         terminated with respect to less than all of its Participants, the
         Company shall be required to pay such benefits in a lump sum. After a
         Change in Control, the Company shall be required to pay such benefits
         in a lump sum. The termination of the Plan shall not adversely affect
         any Participant or Beneficiary who has become entitled to the payment
         of any benefits under the Plan as of the date of termination; provided
         however, that the Company shall have the right to accelerate
         installment payments

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         without a premium or prepayment penalty by paying the Account Balance
         in a lump sum or pursuant to an Annual Installment Method using fewer
         years.

11.2     Amendment. The Company may, at any time, amend or modify the Plan in
         ---------
         whole or in part by the action of the Committee ; provided, however,
         that: (i) no amendment or modification shall be effective to decrease
         or restrict the value of a Participant's Account Balance in existence
         at the time the amendment or modification is made, calculated as if the
         Participant had experienced a Termination of Employment as of the
         effective date of the amendment or modification or, if the amendment or
         modification occurs after the date upon which the Participant was
         eligible to Retire, the Participant had Retired as of the effective
         date of the amendment or modification, (ii) no adverse amendment or
         modification shall be effective upon or after a Change in Control
         without the prior written consent of a majority of the Participants,
         and (iii) no amendment or modification of this Section 11.2 or Section
         12.2 of the Plan shall be effective. The amendment or modification of
         the Plan shall not affect any Participant or Beneficiary who has become
         entitled to the payment of benefits under the Plan as of the date of
         the amendment or modification; provided, however, that the Employer
         shall have the right to accelerate installment payments by paying the
         Account Balance in a lump sum or pursuant to an Annual Installment
         Method using fewer years (provided that the present value of all
         payments that will have been received by a Participant at any given
         point of time under the different payment schedule shall equal or
         exceed the present value of all payments that would have been received
         at that point in time under the original payment schedule).

11.3     Plan Agreement. Despite the provisions of Sections 11.1 and 11.2 above,
         --------------
         if a Participant's Plan Agreement contains benefits or limitations that
         are not in this Plan document, the Company may only amend or terminate
         such provisions with the consent of the Participant.

11.4     Effect of Payment. The full payment of the applicable benefit under
         -----------------
         Articles 4, 5, 6, 7 or 8 of the Plan shall completely discharge all
         obligations to a Participant and his or her designated Beneficiaries
         under this Plan and the Participant's Plan Agreement shall terminate.

                                  ARTICLE 12
                                Administration
                                --------------

12.1     Committee Duties. Except as otherwise provided in this Article 12, this
         ----------------
         Plan shall be administered by the Compensation Committee of the Board,
         or such committee of delegates as the Compensation Committee of the
         Board shall appoint. The Committee shall also have the discretion and
         authority to (i) make, amend, interpret, and enforce all appropriate
         laws, rules and regulations for the administration of this Plan and
         (ii) decide or resolve any and all questions including interpretations
         of this Plan, as may arise in connection with the Plan. Any individual
         serving on the Committee who is a Participant shall not vote or act on
         any matter relating solely to himself or herself. When making a
         determination or calculation, the

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         Committee shall be entitled to rely on information furnished by a
         Participant, the Company or any Employer.

12.2     Administration Upon Change In Control. For purposes of this Plan, the
         -------------------------------------
         Company, acting through the Committee, shall be the "Administrator" at
         all times prior to the occurrence of a Change in Control. Upon and
         after the occurrence of a Change in Control, the "Administrator" shall
         be an independent third party selected by the Trustee and approved by
         the individual who, immediately prior to such event, was the Company's
         Chief Executive Officer or, if not so identified, the Company's highest
         ranking officer (the "Ex-CEO"). The Administrator shall have the
         discretionary power to determine all questions arising in connection
         with the administration of the Plan and the interpretation of the Plan
         and Trust including, but not limited to benefit entitlement
         determinations; provided, however, upon and after the occurrence of a
         Change in Control, the Administrator shall have no power to direct the
         investment of Plan or Trust assets or select any investment manager or
         custodial firm for the Plan or Trust. Upon and after the occurrence of
         a Change in Control, the Company must: (1) pay all reasonable
         administrative expenses and fees of the Administrator; (2) pursuant to
         Section 12.5, indemnify the Administrator against any costs, expenses
         and liabilities including, without limitation, attorney's fees and
         expenses arising in connection with the performance of the
         Administrator hereunder, except with respect to matters resulting from
         the gross negligence or willful misconduct of the Administrator or its
         employees or agents; and (3) pursuant to Section 12.6, supply full and
         timely information to the Administrator or all matters relating to the
         Plan, the Trust, the Participants and their Beneficiaries, the Account
         Balances of the Participants, the date of circumstances of the
         Retirement, Disability, death or Termination of Employment of the
         Participants, and such other pertinent information as the Administrator
         may reasonably require. Upon and after a Change in Control, the
         Administrator may be terminated (and a replacement appointed) by the
         Trustee only with the approval of the Ex-CEO. Upon and after a Change
         in Control, the Administrator may not be terminated by the Company.

12.3     Agents. In the administration of this Plan, the Committee and the
         ------
         Administrator may, from time to time, employ agents and delegate to
         them such of their respective administrative duties as they see fit
         (including acting through a duly appointed representative) and may from
         time to time consult with counsel who may be counsel to any Employer.

12.4     Binding Effect of Decisions. The decisions or actions of the Committee,
         ---------------------------
         the Administrator and/or their respective delegates, with respect to
         any question arising out of or in connection with the administration,
         interpretation and application of the Plan and the rules and
         regulations promulgated hereunder shall be final and conclusive and
         binding upon all persons having any interest in the Plan.

12.5     Indemnity of Committee. All Employers shall indemnify and hold harmless
         ----------------------
         the members of the Committee, and any Employee to whom the duties of
         the Committee may be delegated, and the Administrator against any and
         all claims, losses, damages, expenses or liabilities arising

                                       18
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         from any action or failure to act with respect to this Plan, except in
         the case of willful misconduct by the Committee, any of its members,
         any such Employee or the Administrator.

12.6     Employer Information. To enable the Committee and Administrator to
         --------------------
         perform their respective functions, the Company and each Employer shall
         supply full and timely information to the Committee or Administrator,
         as the case may be, on all matters relating to the compensation of its
         Participants, the date and circumstances of the Retirement, Disability,
         death or Termination of Employment of its Participants, and such other
         pertinent information as the Committee or Administrator may reasonably
         require.

                                  ARTICLE 13
                         Other Benefits and Agreements
                         -----------------------------

13.1     Coordination with Other Benefits. The benefits provided for a
         --------------------------------
         Participant and Participant's Beneficiary under the Plan are in
         addition to any other benefits available to such Participant under any
         other plan or program for employees of the Participant's Employer. The
         Plan shall supplement and shall not supersede, modify or amend any
         other such plan or program except as may otherwise be expressly
         provided.

                                  ARTICLE 14
                               Claims Procedures
                               -----------------

14.1     Presentation of Claim. Any Participant or Beneficiary of a deceased
         ---------------------
         Participant (such Participant or Beneficiary being referred to below as
         a "Claimant") may deliver to the Committee a written claim for a
         determination with respect to the amounts distributable to such
         Claimant from the Plan. If such a claim relates to the contents of a
         notice received by the Claimant, the claim must be made within 60 days
         after such notice was received by the Claimant. All other claims must
         be made within 180 days of the date on which the event that caused the
         claim to arise occurred. The claim must state with particularity the
         determination desired by the Claimant.

14.2     Notification of Decision.  The Committee shall consider a Claimant's
         ------------------------
         claim within a reasonable  time, and shall notify the Claimant in
         writing:

         (a)   that the Claimant's requested determination has been made, and
               that the claim has been allowed in full; or

         (b)   that the Committee has reached a conclusion contrary, in whole or
               in part, to the Claimant's requested determination, and such
               notice must set forth in a manner calculated to be understood by
               the Claimant:

                                       19
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           (i)    the specific reason(s) for the denial of the claim, or any
                  part of it;

           (ii)   specific reference(s) to pertinent provisions of the Plan upon
                  which such denial was based;

           (iii)  a description of any additional material or information
                  necessary for the Claimant to perfect the claim, and an
                  explanation of why such material or information is necessary;
                  and

           (iv)   an explanation of the claim review procedure set forth in
                  Section 14.3 below.

14.3   Review of a Denied Claim. Within 60 days after receiving a notice from
       ------------------------
       the Committee that a claim has been denied, in whole or in part, a
       Claimant (or the Claimant's duly authorized representative) may file with
       the Committee a written request for a review of the denial of the claim.
       Thereafter, but not later than 30 days after the review procedure began,
       the Claimant (or the Claimant's duly authorized representative):

       (a)  may review pertinent documents;

       (b)  may submit written comments or other documents; and/or

       (c)  may request a hearing, which the Committee, in its sole discretion,
            may grant.

14.4   Decision on Review. The Committee shall render its decision on review
       ------------------
       promptly, using an abuse of discretion standard of review, and shall
       render its decision not later than 60 days after the filing of a
       written request for review of the denial, unless a hearing is held or
       other special circumstances require additional time, in which case the
       Committee's decision must be rendered within 120 days after such date.
       Such decision must be written in a manner calculated to be understood
       by the Claimant, and it must contain:

       (a)  specific reasons for the decision;

       (b)  specific reference(s) to the pertinent Plan provisions upon which
            the decision was based; and

       (c)  such other matters as the Committee deems relevant.

14.5   Legal Action. A Claimant's compliance with the foregoing provisions of
       ------------
       this Article 14 is a mandatory prerequisite to a Claimant's right to
       commence any legal action with respect to any claim for benefits under
       this Plan.

                                       20
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                                  ARTICLE 15
                                     Trust
                                     ------

15.1     Establishment of the Trust. The Company may establish the Trust, and
         --------------------------
         each Employer may transfer over to the Trust such assets as the
         Employer determines, in its sole discretion, to provide for its
         respective future liabilities created with respect to the Annual
         Deferral Amounts and Annual Company Contribution Amounts, for such
         Employer's Participants for all periods prior to the transfer, as well
         as any debits and credits to the Participants' Account Balances for all
         periods prior to the transfer, taking into consideration the value of
         the assets in the trust at the time of the transfer.

15.2     Interrelationship of the Plan and the Trust. The provisions of the Plan
         -------------------------------------------
         and the Plan Agreement shall govern the rights of a Participant to
         receive distributions pursuant to the Plan. The provisions of the Trust
         shall govern the rights of the Employers, Participants and the other
         creditors of the Employers to the assets transferred to the Trust. Each
         Employer shall at all times remain liable to carry out its obligations
         under the Plan.

15.3     Distributions From the Trust. Each Employer's obligations under the
         ----------------------------
         Plan may be satisfied with Trust assets distributed pursuant to the
         terms of the Trust, and any such distribution shall reduce the
         Employer's obligations under this Plan.

15.4     Investment of Trust Assets.  The Trustee of the Trust shall be
         ----------------------------
         authorized, upon written instructions received from the
         Committee or investment manager appointed by the Committee, to invest
         and reinvest the assets of the Trust in accordance with the applicable
         Trust Agreement,

                                  ARTICLE 16
                                 Miscellaneous
                                 -------------

16.1     Status of Plan. The Plan is intended to be a plan that is not qualified
         --------------
         within the meaning of Code Section 401(a) and that "is unfunded and is
         maintained by an employer primarily for the purpose of providing
         deferred compensation for a select group of management or highly
         compensated employees" within the meaning of ERISA Sections 201(2),
         301(a)(3) and 401(a)(1). The Plan shall be administered and interpreted
         to the extent possible in a manner consistent with that intent. The
         Plan is an unfunded, nontax-qualified, individual account, profit
         sharing plan. Plan benefits shall only accrue immediately before they
         are paid and may be paid directly by the Company. A person entitled to
         benefits shall be entitled to receive distributions at the time
         otherwise provided under the Plan if he or she consents in writing to
         the distribution within 90 days before it is made. Failing such
         consent, the distribution shall be delayed to such later date as the
         person elects. In this case, the amounts otherwise payable shall be
         deposited at the earliest time otherwise payable with the consent of
         the person, less taxes required to be withheld, in a brokerage house
         account for the benefit of that person, and

                                       21
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         invested as the person directs. However, this account shall be owned by
         a trustee appointed by the Plan Administrator, who shall transfer
         ownership of the account to the person on or after his or her 60/th/
         birthday. By electing to contribute to this Plan, each Participant
         acknowledges that this Plan is subject to ERISA but exempted from all
         of ERISA's substantive requirements because it is a "top hat plan,"
         acknowledges that the Company would not have implemented or continued
         this Plan but for its good faith belief that it is a top hat plan,
         agrees that all Plan benefits shall be contingent on the Plan being a
         top hat plan and promises never to assert otherwise.

16.2     Unsecured General Creditor. Participants and their Beneficiaries,
         --------------------------
         heirs, successors and assigns shall have no legal or equitable rights,
         interests or claims in any property or assets of an Employer. For
         purposes of the payment of benefits under this Plan, the Employer's
         assets shall be, and remain, neither pledged nor restricted under or as
         a result of this Plan. An Employer's obligation under the Plan shall be
         merely that of an unfunded and unsecured promise to pay money in the
         future.

16.3     Employer's Liability. An Employer's liability for the payment of
         --------------------
         benefits shall be defined only by the Plan and the Plan Agreement, as
         entered into between the Employer and a Participant. An Employer shall
         have no obligation to a Participant under the Plan except as expressly
         provided in the Plan and his or her Plan Agreement.

16.4     Nonassignability. Neither a Participant nor any other person shall have
         ----------------
         any right to commute, sell, assign, transfer, pledge, anticipate,
         mortgage or otherwise encumber, transfer, hypothecate, alienate or
         convey in advance of actual receipt, the amounts, if any, payable
         hereunder, or any part thereof, which are, and all rights to which are
         expressly declared to be, unassignable and non-transferable. No part of
         the amounts payable shall, prior to actual payment, be subject to
         seizure, attachment, garnishment or sequestration for the payment of
         any debts, judgments, alimony or separate maintenance owed by a
         Participant or any other person, be transferable by operation of law in
         the event of a Participant's or any other person's bankruptcy or
         insolvency or be transferable to a spouse as a result of a property
         settlement or otherwise.

16.5     Not a Contract of Employment. The terms and conditions of this Plan
         ----------------------------
         shall not be deemed to constitute a contract of employment between any
         Employer and the Participant. Such employment is hereby acknowledged to
         be an "at will" employment relationship that can be terminated at any
         time for any reason, or no reason, with or without cause, and with or
         without notice, except to the extent expressly provided in a written
         employment agreement, if any. Nothing in this Plan shall be deemed to
         give a Participant the right to be retained in the service of any
         Employer or to interfere with the right of any Employer to discipline
         or discharge the Participant at any time.

16.6     Furnishing Information. A Participant or his or her Beneficiary, as a
         ----------------------
         condition to entitlement to benefits hereunder, shall cooperate with
         the Committee by furnishing any and all information requested by the
         Committee and take such other actions as may be requested in order to
         facilitate the administration of the Plan and the payments of benefits
         hereunder,

                                       22
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         including but not limited to taking such physical examinations as the
         Committee may deem necessary.

16.7     Terms. Whenever any words are used herein in the masculine, they shall
         -----
         be construed as though they were in the feminine in all cases where
         they would so apply; and whenever any words are used herein in the
         singular or in the plural, they shall be construed as though they were
         used in the plural or the singular, as the case may be, in all cases
         where they would so apply.

16.8     Captions. The captions of the articles, sections and paragraphs of this
         --------
         Plan are for convenience only and shall not control or affect the
         meaning or construction of any of its provisions.

16.9     Governing Law.  Subject to ERISA, the provisions of this Plan shall
         --------------
         be construed and interpreted according to the internal laws of the
         State of California without regard to its conflicts of laws principles.

16.10    Notice. Any notice or filing required or permitted to be given to the
         ------
         Committee under this Plan shall be sufficient if in writing and
         hand-delivered, or sent by registered or certified mail, to the address
         below:

                           Amgen Inc. Nonqualified
                           Deferred Compensation Plan
                           Committee
                          ------------------------------
                           Amgen, Inc.
                          ------------------------------
                           One Amgen Center Drive
                          ------------------------------
                           Thousand Oaks, CA 91320-1799
                          ------------------------------

         Such notice shall be deemed given as of the date of delivery or, if
         delivery is made by mail, as of the date shown on the postmark on the
         receipt for registration or certification.

         Any notice or filing required or permitted to be given to a Participant
         under this Plan shall be sufficient if in writing and hand-delivered,
         or sent by mail, to the last address of the Participant shown on the
         records of the Company.

16.11    Successors. The provisions of this Plan shall bind and inure to the
         ----------
         benefit of the Participant's Employer and its successors and assigns
         and the Participant and the Participant's designated Beneficiaries.

16.12    Spouse's Interest. The interest in the benefits hereunder of a spouse
         -----------------
         of a Participant who has predeceased the Participant shall
         automatically pass to the Participant and shall not be transferable by
         such spouse in any manner, including but not limited to such spouse's
         will, nor shall such interest pass under the laws of intestate
         succession.

                                       23
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16.13    Validity. In case any provision of this Plan shall be illegal or
         --------
         invalid for any reason, said illegality or invalidity shall not affect
         the remaining parts hereof, but this Plan shall be construed and
         enforced as if such illegal or invalid provision had never been
         inserted herein.

16.14    Incompetent. If the Committee determines in its discretion that a
         -----------
         benefit under this Plan is to be paid to a minor, a person declared
         incompetent or to a person incapable of handling the disposition of
         that person's property, the Committee may direct payment of such
         benefit to the guardian, legal representative or person having the care
         and custody of such minor, incompetent or incapable person. The
         Committee may require proof of minority, incompetence, incapacity or
         guardianship, as it may deem appropriate prior to distribution of the
         benefit. Any payment of a benefit shall be a payment for the account of
         the Participant and the Participant's Beneficiary, as the case may be,
         and shall be a complete discharge of any liability under the Plan for
         such payment amount.

16.15    Court Order. The Committee is authorized to cause the Company or any
         -----------
         Employer to make any payments directed by court order in any action in
         which the Plan or the Committee has been named as a party. In addition,
         if a court determines that a spouse or former spouse of a Participant
         has an interest in the Participant's benefits under the Plan in
         connection with a property settlement or otherwise, the Committee, in
         its sole discretion, shall have the right, notwithstanding any election
         made by a Participant, to immediately cause the Company or any Employer
         to distribute the spouse's or former spouse's interest in the
         Participant's benefits under the Plan to that spouse or former spouse.

16.16    Distribution in the Event of Taxation.
         -------------------------------------

         (a)  In General.  If, for any reason, all or any portion of a
              ----------
              Participant's benefits under this Plan becomes taxable to the
              Participant prior to receipt, a Participant may petition the
              Committee before a Change in Control, or the trustee of the Trust
              after a Change in Control, for a distribution of that portion of
              his or her benefit that has become taxable. Upon the grant of such
              a petition, which grant shall not be unreasonably withheld (and,
              after a Change in Control, shall be granted), a Participant's
              Employer shall distribute to the Participant immediately available
              funds in an amount equal to the taxable portion of his or her
              benefit (which amount shall not exceed a Participant's unpaid
              Account Balance under the Plan). If the petition is granted, the
              tax liability distribution shall be made within 90 days of the
              date when the Participant's petition is granted. Such a
              distribution shall affect and reduce the benefits to be paid under
              this Plan.

         (b)  Trust. If the Trust terminates in accordance with its terms and
              -----
              benefits are distributed from the Trust to a Participant in
              accordance with that Section, the Participant's Account, and
              accordingly the benefits under this Plan, shall be reduced to the
              extent of such distributions.

16.17    Insurance. The Employers, on their own behalf or on behalf of the
         ---------
         trustee of the Trust, and, in their sole discretion, may apply for and
         procure insurance on the life of the Participants, in such

                                       24
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         amounts and in such forms as the Trust may choose. The Employers or the
         trustee of the Trust, as the case may be, shall be the sole owner and
         beneficiary of any such insurance. The Participants shall have no
         interest whatsoever in any such policy or policies, and at the request
         of the Employers shall submit to medical examinations and supply such
         information and execute such documents as may be required by the
         insurance company or companies to whom the Employers have applied for
         insurance.

16.18    Legal Fees To Enforce Rights After Change in Control. The Company and
         ----------------------------------------------------
         each Employer is aware that upon the occurrence of a Change in Control,
         the Board or the board of directors of a Participant's Employer (which
         might then be composed of new members) or a shareholder of the Company
         or the Participant's Employer, or of any successor corporation might
         then cause or attempt to cause the Company, the Participant's Employer
         or such successor to refuse to comply with its obligations under the
         Plan and might cause or attempt to cause the Company or the
         Participant's Employer to institute, or may institute, litigation
         seeking to deny Participants the benefits intended under the Plan. In
         these circumstances, the purpose of the Plan could be frustrated.
         Accordingly, if, following a Change in Control, it should appear to any
         Participant that the Company, the Participant's Employer or any
         successor corporation has failed to comply with any of its obligations
         under the Plan or any agreement thereunder or, if the Company, such
         Employer or any other person takes any action to declare the Plan void
         or unenforceable or institutes any litigation or other legal action
         designed to deny, diminish or to recover from any Participant the
         benefits intended to be provided, then the Company and the
         Participant's Employer irrevocably authorize such Participant to retain
         counsel of his or her choice at the expense of the Company and the
         Participant's Employer (who shall be jointly and severally liable) to
         represent such Participant in connection with the initiation or defense
         of any litigation or other legal action, whether by or against the
         Company, the Participant's Employer or any director, officer,
         shareholder or other person affiliated with the Company, the
         Participant's Employer or any successor thereto in any jurisdiction.
         Notwithstanding anything in this Section or the Plan to the contrary,
         the Company and/or the Participant's Employer shall have no obligation
         under this Section to the extent there is a judicial determination or
         final arbitration decision that the litigation or other legal action
         brought by the Participant is frivolous.

         IN WITNESS WHEREOF, the Company has signed this Plan document as of
__________, 2001.

                                       "Company"

                                       Amgen, Inc., a Delaware corporation

                                       By:      ____________________________

                                       Title:   ____________________________

                                       25<PAGE>

                                                                     Exhibit 4.1

                         SECURITIES PURCHASE AGREEMENT

                                 by and between

                           ARTESYN TECHNOLOGIES, INC.

                                      and

                         FINESTAR INTERNATIONAL LIMITED

                          Dated as of January 14, 2002

                     ______________________________________

<PAGE>

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                                                                    Page
                                                                                                                    ----
<S>                                                                                                                 <C>
ARTICLE I DEFINITIONS.............................................................................................    1
         ------------

         1.1      Definitions.....................................................................................    1
                  -----------
         1.2      Accounting Terms................................................................................    7
                  ----------------

ARTICLE II PURCHASE AND SALE......................................................................................    7
          ------------------

         2.1      Purchase and Sale of the Note and Warrant.......................................................    7
                  -----------------------------------------
         2.2      Purchase Price and Payment......................................................................    7
                  --------------------------
         2.3      Closing.........................................................................................    7
                  -------
         2.4      Closing Deliveries..............................................................................    8
                  ------------------

ARTICLE III CONDITIONS TO THE OBLIGATION OF PURCHASER TO CLOSE....................................................    8
           ---------------------------------------------------

         3.1      Representations and Warranties..................................................................    8
                  ------------------------------
         3.2      Compliance with this Agreement..................................................................    9
                  ------------------------------
         3.3      Officer's Certificate...........................................................................    9
                  ---------------------
         3.4      Secretary's Certificate, Good Standing Certificates.............................................    9
                  ---------------------------------------------------
         3.5      Opinion of Counsel..............................................................................    9
                  ------------------
         3.6      Purchase Permitted by Requirements of Law.......................................................    9
                  -----------------------------------------
         3.7      Required Consents...............................................................................    9
                  -----------------
         3.8      Note............................................................................................    9
                  ----
         3.9      Warrant.........................................................................................    9
                  -------
         3.10     Registration Rights Agreement...................................................................   10
                  -----------------------------
         3.11     Amended Loan Agreement..........................................................................   10
                  ----------------------
         3.12     No Shareholder Approval Required................................................................   10
                  --------------------------------

ARTICLE IV CONDITIONS TO THE OBLIGATION OF THE COMPANY TO CLOSE...................................................   10
          -----------------------------------------------------

         4.1      Representations and Warranties True.............................................................   10
                  -----------------------------------
         4.2      Compliance with this Agreement..................................................................   10
                  ------------------------------
         4.3      Purchaser's Officer's Certificate...............................................................   10
                  ---------------------------------
         4.4      Issuance Permitted by Requirements of Law.......................................................   10
                  -----------------------------------------
         4.5      Receipt of Funds................................................................................   10
                  ----------------
         4.6      Purchaser's Secretary's Certificate, Good Standing Certificates.................................   11
                  ---------------------------------------------------------------
         4.7      No Company Shareholder Approval Required........................................................   11
                  ----------------------------------------

ARTICLE V REPRESENTATIONS AND WARRANTIES OF THE COMPANY...........................................................   11
         ----------------------------------------------

         5.1      Existence, Qualification and Power..............................................................   11
                  ----------------------------------
         5.2      Power and Authority; Authorization..............................................................   11
                  ----------------------------------
         5.3      No Violation....................................................................................   12
                  ------------
         5.4      Governmental and Other Approvals................................................................   12
                  --------------------------------
         5.5      Financial Statements; Financial Condition.......................................................   12
                  -----------------------------------------
         5.6      Litigation; Labor Controversies.................................................................   13
                  -------------------------------
         5.7      Use of Proceeds; Margin Regulations.............................................................   13
                  -----------------------------------
         5.8      Tax Returns and Payments........................................................................   13
                  ------------------------
         5.9      Compliance with ERISA...........................................................................   13
                  ---------------------
</TABLE>
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                               TABLE OF CONTENTS
                                  (Continued)

<TABLE>
<CAPTION>
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                                                                                                                    ----
<S>                                                                                                                 <C>
         5.10     Compliance with Statutes, Etc...................................................................   14
                  -----------------------------
         5.11     Environmental Matters...........................................................................   14
                  ---------------------
         5.12     Investment Company Act..........................................................................   14
                  ----------------------
         5.13     Public Utility Holding Company Act..............................................................   14
                  ----------------------------------
         5.14     Intellectual Property...........................................................................   15
                  ---------------------
         5.15     Properties......................................................................................   15
                  ----------
         5.16     Solvency........................................................................................   15
                  --------
         5.17     Capitalization..................................................................................   16
                  --------------
         5.18     Commission Filings..............................................................................   16
                  ------------------
         5.19     Securities Act..................................................................................   16
                  --------------
         5.20     Absence of Changes..............................................................................   16
                  ------------------
         5.21     Customers.......................................................................................   17
                  ---------
         5.22     Suppliers.......................................................................................   17
                  ---------
         5.23     Product Warranties, Defects, Liability..........................................................   17
                  --------------------------------------
         5.24     No Illegal Payments, Etc........................................................................   17
                  -------------------------
         5.25     Claims by Other Investors.......................................................................   17
                  -------------------------
         5.26     Rights Agreement................................................................................   17
                  ----------------
         5.27     Amended Loan Agreement..........................................................................   18
                  ----------------------
         5.28     Representations Complete........................................................................   18
                  ------------------------

ARTICLE VI REPRESENTATIONS AND WARRANTIES OF PURCHASER............................................................   18
          --------------------------------------------

         6.1      Existence, Qualification and Power..............................................................   18
                  ----------------------------------
         6.2      Power and Authority; Authorization..............................................................   18
                  ----------------------------------
         6.3      No Violation....................................................................................   18
                  ------------
         6.4      Governmental and Other Approvals................................................................   19
                  --------------------------------
         6.5      Accredited Investor; Purchase for Own Account...................................................   19
                  ---------------------------------------------
         6.6      Ownership of Company Securities; Voting and Other Agreements....................................   20
                  ------------------------------------------------------------
         6.7      Litigation......................................................................................   20
                  ----------
         6.8      No Brokers or Finders...........................................................................   20
                  ---------------------
         6.9      Reliance........................................................................................   20
                  --------

ARTICLE VII COVENANTS.............................................................................................   20
           ----------

         7.1      Further Assurances..............................................................................   20
                  ------------------
         7.2      Additional Disclosure...........................................................................   20
                  ---------------------
         7.3      Schedule 13D and 13G............................................................................   20
                  --------------------
         7.4      Delivery of Amended Loan Agreement..............................................................   21
                  ----------------------------------
         7.5      Shareholder Approval............................................................................   21
                  --------------------
         7.6      Regulatory Filings..............................................................................   21
                  ------------------
         7.7      Most Favored Nation Treatment Under Rights Agreement............................................   21
                  ----------------------------------------------------
         7.8      Nasdaq Listing..................................................................................   21
                  --------------
</TABLE>
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                               TABLE OF CONTENTS
                                  (Continued)

<TABLE>
<CAPTION>
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                                                                                                                   ----
<S>                                                                                                                 <C>
ARTICLE VIII PROXY MATTERS; STANDSTILL...........................................................................    22
            --------------------------

         8.1      Proxy Matters; Standstill......................................................................    22
                  -------------------------
         8.2      No Limitation on Voting Rights, Etc............................................................    22
                  -----------------------------------
         8.3      Standstill Period..............................................................................    23
                  -----------------

ARTICLE IX RIGHT OF FIRST NEGOTIATION; BOARD OBSERVER RIGHTS.....................................................    24
          --------------------------------------------------

         9.1      Right of First Negotiation.....................................................................    24
                  --------------------------
         9.2      Board of Directors Observer Rights.............................................................    27
                  ----------------------------------

ARTICLE X INDEMNIFICATION; TERMINATION...........................................................................    27
         -----------------------------

         10.1     Indemnification by the Company.................................................................    27
                  ------------------------------
         10.2     Notification and Advancement of Expenses.......................................................    28
                  ----------------------------------------
         10.3     Limitation of Liability........................................................................    29
                  -----------------------
         10.4     Termination Events.............................................................................    29
                  ------------------

ARTICLE XI MISCELLANEOUS.........................................................................................    30
          --------------

         11.1     Communications.................................................................................    30
                  --------------
         11.2     Successors and Assigns.........................................................................    31
                  ----------------------
         11.3     Determinations, Requests or Consents...........................................................    31
                  ------------------------------------
         11.4     Counterparts...................................................................................    31
                  ------------
         11.5     Headings.......................................................................................    31
                  --------
         11.6     Governing Law..................................................................................    31
                  -------------
         11.7     Severability...................................................................................    32
                  ------------
         11.8     Entire Agreement; Third Party Beneficiaries....................................................    32
                  -------------------------------------------
         11.9     Certain Expenses...............................................................................    32
                  ----------------
         11.10    Publicity......................................................................................    32
                  ---------
         11.11    Further Assurances.............................................................................    32
                  ------------------
         11.12    Consent to Jurisdiction........................................................................    32
                  -----------------------
         11.13    Agent for Service of Process...................................................................    33
                  ----------------------------
</TABLE>

SCHEDULES

         Company Disclosure Schedule
         Schedule 6.8 - Brokers and Finders

EXHIBITS

         Exhibit A - Form of Note
         Exhibit B - Form of Warrant
         Exhibit C - Terms for Amended Loan Agreement
         Exhibit D - Form of Registration Rights Agreement
         Exhibit E - Form of Opinion of Company Counsel

                                                                           -iii-
<PAGE>

                         SECURITIES PURCHASE AGREEMENT
                         -----------------------------

     THIS SECURITIES PURCHASE AGREEMENT dated as of January 14, 2002 (this

"Agreement"), by and between ARTESYN TECHNOLOGIES, INC., a Florida corporation
----------
(the "Company"), and FINESTAR INTERNATIONAL LIMITED, a British Virgin Islands
      -------
corporation ("Purchaser").
              ---------

                              STATEMENT OF PURPOSE

     WHEREAS, the Company has agreed to issue to Purchaser, and Purchaser has
agreed to purchase from the Company, that certain subordinated convertible
promissory note substantially in the form of Exhibit A hereto (the "Note"), in
                                             ---------              ----
the principal amount of $50,000,000 which will be convertible into shares of the
Company's Common Stock and payable as set forth in the Note;

     WHEREAS, to induce Purchaser to make such loans, the Company has agreed to
issue to Purchaser a warrant to purchase shares of Common Stock as set forth in
the warrant substantially in the form of Exhibit B hereto (the "Warrant"); and
                                         ---------              -------

     WHEREAS, the Company and Purchaser have reached certain agreements with
regard to the foregoing transactions, all upon the terms and conditions more
particularly described herein.

                                   AGREEMENT

     NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby mutually acknowledged, the parties hereto hereby
agree as follows:

                                   ARTICLE I

                                  DEFINITIONS
                                  -----------

     1.1  Definitions. As used in this Agreement, and unless the context
          -----------
requires a different meaning, the following terms have the meanings indicated:

     "13D Group" has the meaning set forth in Section 8.1(a).

     "Acquisition Offer" has the meaning set forth in Section 9.1(a).

     "Acquisition Proposal" has the meaning set forth in Section 9.1(a).

     "Actual Expenses" has the meaning set forth in Section 10.2.

     "Advanced Expenses" has the meaning set forth in Section 10.2.

                                                                             -1-
<PAGE>

     "Advancement Period" has the meaning set forth in Section 10.2.

     "Affiliate" shall have the meaning set forth in Rule 12b-2 of the rules and
regulations promulgated under the Exchange Act; provided, however, that for
                                                --------  -------
purpose of this Agreement, Purchaser and its Affiliates on the one hand, and the
Company and its Affiliates on the other, shall not be deemed to be "Affiliates"
of one another.

     "Agreement" means this Securities Purchase Agreement, as amended or
supplemented from time to time.

     "Amended Loan Agreement" means the Waiver and Third Amendment to Credit
Agreement dated as of the Closing Date, amending and modifying the Credit
Agreement to reflect in all material respects terms and conditions no less
favorable to the Company than those set forth in Exhibit C hereto.
                                                 ---------

     "Bankruptcy Code" has the meaning set forth in Section 8.3(d).

     "Blackout Period" has the meaning set forth in Section 9.1(d).

     "Bona Fide Public Offering" means a widely distributed, firm commitment or
best efforts underwritten public offering for the purpose of raising capital
pursuant to an effective registration statement under the Securities Act
covering the offer and sale of Common Stock of the Company for its own account.

     "Business Day" means any day other than a Saturday, Sunday or other day on
which commercial banks in New York City are authorized or required by law or
executive order to close.

     "Closing" has the meaning assigned thereto in Section 2.3.

     "Closing Date" has the meaning assigned thereto in Section 2.3.

     "Code" means the Internal Revenue Code of 1986, as amended, or any
successor statute thereto.

     "Commission" means the United States Securities and Exchange Commission.

     "Common Stock" means the Company's common stock, par value $0.01 per share,
or any other capital stock of the Company into which such stock is reclassified
or reconstituted.

     "Communications" has the meaning assigned thereto in Section 11.1.

     "Company" has the meaning assigned thereto in the Preamble.

     "Company Disclosure Schedule" means the Company Disclosure Schedule
attached hereto.

     "Company Indemnified Party" has the meaning assigned thereto in Section
10.1.

     "Company Intellectual Property" means any material Intellectual Property
that is owned by the Company or any of its Subsidiaries.

                                                                             -2-
<PAGE>

     "Company Liabilities" has the meaning assigned thereto in Section 10.1.

     "Competitive Acquisition" means the acquisition of a business which would
not result in the change of control described in Section 9.1(a)(i)(A) herein,
which would be pursued in a competitive manner relative to a member of the
Purchaser Group, and a key purpose of which is not to acquire capital.

     "Credit Agreement" means the Credit Agreement, dated as of January 23,
2001, as amended through the date hereof, among the Company and certain of its
Subsidiaries, Bank of America, N.A. and the other lender parties thereto.

     "DOJ" has the meaning assigned thereto in Section 7.6.

     "Environmental Law" means any law, regulation, or other applicable
requirement relating to (a) release or threatened release of any Hazardous
Material or (b) pollution or protection of public, health, or the environment.

     "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended.

     "ERISA Affiliate" shall mean any corporation, trade or business that is,
along with the Company, a member of a controlled group of corporations or a
controlled group of trades or businesses, as described in Section 414(b) and
414(c), respectively, of the Code or Section 4001 of ERISA.

     "Exchange Act" means the Securities Exchange Act of 1934, as amended.

     "Exclusive Negotiation Period" has the meaning set forth in Section 9.1(c).

     "Exclusive Offer" has the meaning set forth in Section 9.1(c).

     "Exclusive Offer Period" has the meaning set forth in Section 9.1(c).

     "FTC" has the meaning assigned thereto in Section 7.6.

     "GAAP" means generally accepted United States accounting principles set
forth in the opinions and pronouncements of the Accounting Principles Board of
the American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board that are applicable
to the circumstances as of the date of determination.

     "Governmental Authority" means the government of any nation, state, city,
locality or other political subdivision thereof, any entity exercising
executive, legislative, judicial, regulatory or administrative functions of or
pertaining to government, and any corporation or other entity owned or
controlled, through stock or capital ownership or otherwise, by any of the
foregoing.

     "Hazardous Material" means (a) any petrochemical or petroleum products,
radioactive materials, asbestos in any form that is or could become friable,
urea formaldehyde foam insulation, transformers or other equipment that contain
dielectric fluid containing levels of polychlorinated biphenyls, and radon gas;
and (b) any chemicals, materials or substances defined as or included in the
definition of "hazardous

                                                                             -3-
<PAGE>

substances," "hazardous wastes," "hazardous materials," "restricted hazardous
materials," "extremely hazardous wastes," "restrictive hazardous wastes," "toxic
substances," "toxic pollutants," "contaminants" or "pollutants," or words of
similar meaning and regulatory effect under any applicable Environmental Law.

     "HSR Act" has the meaning assigned thereto in Section 7.6.

     "HSR Filing" has the meaning assigned thereto in Section 7.6.

     "Indebtedness" means as to any Person, at a particular time, (i)
indebtedness for borrowed money or for the deferred purchase price of property
or services (other than trade payables in the ordinary course of business) in
respect of which such Person is liable, contingently or otherwise, as obligor,
guarantor or otherwise, or in respect of which such Person otherwise assures a
creditor against loss; (ii) obligations under leases which shall have been or
should be, in accordance with GAAP, recorded as capital leases in respect of
which obligations such Person is liable, contingently or otherwise, as obligor,
guarantor or otherwise, or in respect of which obligations such Person assures a
creditor against loss; or (iii) indebtedness or obligations of such Person under
or with respect to letters of credit, notes, bonds or other debt instruments.

     "Intellectual Property" means any or all of the following and all rights
in, arising out of, or associated therewith: (i) all United States,
international and foreign patents and applications therefor and all reissues,
divisions, renewals, extensions, provisionals, continuations and continuations-
in-part thereof; (ii) all inventions (whether patentable or not), invention
disclosures, improvements, trade secrets, proprietary information, know how,
technology, technical data and customer lists; (iii) all copyrights, copyrights
registrations and applications therefor, and all other rights corresponding
thereto throughout the world; (iv) all industrial designs and any registrations
and applications therefor throughout the world; (v) all trade names, logos,
common law trademarks and service marks, trademark and service mark
registrations and applications therefor throughout the world; (vi) all databases
and data collections and all rights therein throughout the world; and (vii) all
domain names.

     "Lien" means any mortgage, pledge, hypothecation, assignment, deposit
arrangement, encumbrance, lien (statutory or other), priority or other security
agreement of any kind or nature whatsoever (including, without limitation, any
conditional sale or other title retention agreement, any financing or similar
statement or notice filed under the Uniform Commercial Code or any other similar
recording or notice statute, and any lease having substantially the same effect
as any of the foregoing).

     Unless otherwise specified in the relevant section of this Agreement,
"material" shall mean material with respect to the Company and its Subsidiaries
taken as a whole.

     "Material Adverse Effect" means a material adverse effect upon (i) the
business, operations, results of operations, assets, properties, condition
(financial or otherwise) of the Company and its Subsidiaries, taken as a whole,
or (ii) the ability of the Company to perform its obligations under the
Transaction Documents.

     "Negotiation Period" has the meaning set forth in Section 9.1(d).

     "Note" has the meaning assigned thereto in the Statement of Purpose.

                                                                             -4-
<PAGE>

     "Notice" has the meaning assigned thereto in Section 9.1(b).

     "Observer" has the meaning set forth in Section 9.2(a).

     "Observer Rights" has the meaning set forth in Section 9.2(a).

     "Offer" has the meaning set forth in Section 9.1(d).

     "Offer Period" has the meaning set forth in Section 9.1(d).

     "Organizational Documents" means with respect to a corporation, the
articles of incorporation and by-laws of such corporation; with respect to a
partnership, the certificate of partnership (or limited partnership, as
applicable) and partnership agreement, together with the analogous documents for
any corporate or partnership general partner; and in any other case, any organic
document governing the formation and conduct of business by such entity.

     "Person" means any individual, firm, corporation, partnership, trust,
limited liability company, incorporated or unincorporated association, joint
venture, joint stock company, Governmental Authority or other entity of any
kind, and shall include any successor (by merger or otherwise) of such entity.

     "Plan" means (i) an "employee pension plan" as defined in Section 3(2) of
ERISA; (ii) an "employee welfare benefit plan" as defined in Section 3(1) of
ERISA; or (iii) any other employee benefit or fringe benefit plan or program,
whether established by Requirements of Law, a written agreement or other
instrument, or custom or informal understanding.

     "Property" means any interest in any kind of property or asset, whether
real, personal or mixed, or tangible or intangible, whether now owned or
hereafter acquired other than Company Intellectual Property.

     "Purchaser" has the meaning assigned thereto in the Preamble and their
successors and permitted assigns.

     "Purchaser Group" means Purchaser and any affiliate (or affiliate(s)
thereof, direct or indirect) of Purchaser, or any affiliate(s) direct or
indirect, of such affiliate(s), including Delta Products Corporation and Delta
Electronics, Inc.

     "Purchase Price" has the meaning set forth in Section 2.2(a).

     "Registration Rights Agreement" means the Registration Rights Agreement
dated as of the Closing Date between the Company and Purchaser, substantially in
the form of Exhibit D hereto.
            ---------

     "Regulation D" means Rule 506 of Regulation D as promulgated by the
Commission.

     "Regulatory Authorizations" means all approvals, authorizations, licenses,
filings, notices, registrations, consents, permits, exemptions, registrations,
qualifications, designations, declarations, or other actions or undertakings
made by, to or in respect of any Governmental Authority.

                                                                             -5-
<PAGE>

     "Reportable Event" means any of the events set forth in Section 4043(c) of
ERISA, other than events for which the 30 day notice period has been waived.

     "Requirements of Law" means, with respect to a Person, the Organizational
Documents of such Person, and any law, ordinance, code, regulation, rule,
guideline of policy of any Governmental Authority in each case applicable to or
binding upon such Person including all applicable common law, all provisions of
all applicable material state and federal constitutions, statutes, rules,
regulations and orders of all governmental bodies, all Regulatory Authorizations
issued to the Company or its Subsidiaries and all Environmental Laws.

     "Restricted Securities" has the meaning set forth in Section 8.1(a).

     "Right of First Negotiation" means those rights of Purchaser as provided in
Section 9.1.

     "Rights Agreement" means the Amended and Restated Rights Agreement between
the Company and Bank of New York dated as of November 21, 1998.

     "Securities" has the meaning set forth in Section  2.1.

     "Securities Act" means the Securities Act of 1933, as amended.

     "Series A Participating Preferred Stock" means the Series A Junior
Participating Preferred Stock of the Company, par value $0.01 per share, or any
other capital stock of the Company into which such stock is reclassified or
reconstituted.

     "Significant Subsidiary" has the meaning set forth in Section 1-02 of
Regulation S-X promulgated by the Commission and shall include without
limitation as of the date hereof Artesyn North America, Inc. and Artesyn
Technologies Communications Products, Inc.

     "Standstill Period" has the meaning set forth in Section 8.3.

     "Subsidiary" means as to any Person, (i) any corporation more than fifty
percent (50%) of whose stock of any class or classes having by the terms thereof
ordinary voting power to elect a majority of the directors of such corporation
(irrespective of whether or not at the time stock of any class or classes of
such corporation shall have or might have voting power by reason of the
happening of any contingency) is at the time owned by such Person and/or one or
more subsidiaries of such Person and (ii) any partnership, limited liability
company, association, joint venture or other entity in which such Person and/or
one or more subsidiaries of such Person has more than a fifty percent (50%)
equity interest at the time or which such Person has the right to control.

     "Superior Proposal" has the meaning set forth in Section 9.1(e).

     "Taxes" means all federal, state, local, or foreign taxes, assessments,
fees and other similar charges imposed by a Governmental Authority, including
any interest, penalties or additions thereto.

     "Tax Returns" has the meaning set forth in Section 5.8.

                                                                             -6-
<PAGE>

     "Transaction Documents" means, collectively, this Agreement, the Note, the
Warrant, and the Registration Rights Agreement.

     "Unfunded Current Liability" means, as to any Plan, the amount, if any, by
which the actuarial present value of the accumulated plan benefits under the
Plan as of the close of its most recent plan year exceeds the fair market value
of the assets allocable thereto, each determined in accordance with Statement of
Financial Accounting, Standards No. 35, based upon the actuarial assumptions
used by the Plan's actuary in the most recent annual valuation of such Plan.

     "United States" and "U.S." shall mean the United States of America.

     "Waiting Period" has the meaning set forth in Section 9.1(a).

     "Warrant" has the meaning assigned thereto in the Preamble.

     1.2  Accounting Terms.  All accounting terms used herein not expressly
          ----------------
defined in this Agreement shall have the respective meanings given to them in
accordance with the GAAP.

                                  ARTICLE II

                               PURCHASE AND SALE
                               -----------------

     2.1  Purchase and Sale of the Note and Warrant. At the Closing, the Company
          -----------------------------------------
shall issue to Purchaser, and Purchaser shall purchase from the Company, for the
Purchase Price, (i) the Note and (ii) the Warrant (together, the "Securities").
                                                                  ----------

     2.2  Purchase Price and Payment.
          --------------------------

          (a)  Purchase Price. The aggregate purchase price for the Note and
               --------------
Warrant shall be $50,000,000 (the "Purchase Price"), of which $44,895,000 shall
                                   --------------
be allocated to the purchase of the Note and $5,105,000 shall be allocated to
the purchase of the Warrant.

          (b)  Payment of Purchase Price. The Purchase Price shall be paid to
               -------------------------
the Company by Purchaser on the Closing Date via federal funds wire transfer(s)
of immediately available funds in accordance with written instructions to be
provided to Purchaser by the Company not more than four (4) Business Days after
the date hereof, but in any event not less than four (4) Business Days prior to
the Closing Date.

     2.3  Closing. The closing of the sale and purchase of the Securities (the
          -------
"Closing") shall take place at the offices of Kirkpatrick & Lockhart LLP, 1251
 -------
Avenue of the Americas, New York, New York 10020 as soon as practicable
following the satisfaction or waiver of all of the conditions set forth in
Articles III and IV herein other than those conditions which may, by their
terms, only be satisfied at the Closing, but in any event not later than 10:00
a.m., local time, on the second Business Day after satisfaction or waiver of all
such conditions, or at such other time, date and/or place as Purchaser and the
Company may mutually agree in writing. The date upon which the Closing shall
occur is herein called

                                                                             -7-
<PAGE>

the "Closing Date." To the extent practicable, the parties hereto shall convene
     ------------
a pre-closing the day before the Closing Date.

     2.4  Closing Deliveries.
          ------------------

          (a)  Company Deliveries. At the Closing, the Company shall deliver or
               ------------------
cause to be delivered to Purchaser the following:

                    (i)    the Note duly executed by the Company;

                    (ii)   the Warrant duly executed by the Company;

                    (iii)  the Registration Rights Agreement duly executed by
the Company;

                    (iv)   the Amended Loan Agreement, which shall be in full
force and effect and under which there shall be no defaults;

                    (v)    copies of the consents of Persons necessary for the
Company to effectuate this Agreement and consummate the transactions
contemplated hereby set forth on Section 2.4(a) of the Company Disclosure
                                 --------------
Schedule; and

                    (vi)   acknowledgement of receipt of the Purchase Price.

               (b)  Purchaser Deliveries. At the Closing, Purchaser shall
                    --------------------
deliver or cause to be delivered to the Company:

                    (i)    the Purchase Price;

                    (ii)   acknowledgement of receipt of the Note;

                    (iii)  acknowledgement of receipt of the Warrant; and

                    (iv)   the Registration Rights Agreement duly executed by
Purchaser.

                                  ARTICLE III

               CONDITIONS TO THE OBLIGATION OF PURCHASER TO CLOSE
               --------------------------------------------------

     The obligation of Purchaser to purchase the Securities at the Closing, to
pay the Purchase Price therefor at the Closing and to perform any other
obligations hereunder shall be subject to the fulfillment on or prior to the
Closing of all of the following conditions, any one or more or which may be
waived by Purchaser in its sole discretion:

     3.1  Representations and Warranties. The representations and warranties of
          ------------------------------
the Company contained in Section 5 hereof shall be true and correct (i) when
made and (ii) on and as of the Closing as if made on and as of such time (except
for representations and warranties that speak as of a specific date

                                                                             -8-
<PAGE>

in which case the representation or warranty only need be true and correct as of
the specified date, and except as may be affected by the transactions
contemplated hereby and by the Amended Loan Agreement).

     3.2  Compliance with this Agreement. The Company shall have performed and
          ------------------------------
complied in all material respects with all of the agreements, obligations,
covenants and conditions set forth in this Agreement or any other Transaction
Document or contemplated herein or therein that are required to be performed or
complied with by the Company on or before the Closing.

     3.3  Officer's Certificate.  Purchaser shall have received a certificate
          ---------------------
dated as of the Closing Date from the chief financial officer of the Company as
to the accuracy of Sections 3.1 and 3.2 hereof and certifying that (i) the
Company has received all consents and approvals, with respect to the Amended
Loan Agreement, the Transaction Documents and the transactions contemplated
thereunder, from all parties thereto from whom such consent or approval is
required, and (ii) the Amended Loan Agreement (A) reflects in all material
respects terms and conditions that are substantially similar to and in the
aggregate are no less favorable to the Company than those set forth in the Terms
for Amended Loan Agreement attached hereto as Exhibit C and (B) is in full force
                                              ---------
and effect.

     3.4  Secretary's Certificate, Good Standing Certificates. Purchaser shall
          ---------------------------------------------------
have received a certificate from the Company dated the Closing Date and signed
by the Secretary or an Assistant Secretary of the Company, certifying (a) that
the attached copies of the Organizational Documents or other applicable
governance documents and resolutions of the Board of Directors of the Company
(i) authorizing the issuance of the Common Stock upon conversion and exercise of
the Securities and (ii) approving this Agreement, each of the other Transaction
Documents and the transactions contemplated hereby and thereby to which it is a
party, are all true, complete and correct and remain unamended and in full force
and effect; (b) as to the incumbency and specimen signature of each officer of
the Company executing this Agreement and the other Transaction Documents to
which it is a party and any other document delivered in connection herewith or
therewith on behalf of the Company; and (c) as to the good standing of the
Company and its Subsidiaries in each such company's state of incorporation (to
the extent that this status of good standing is applicable in such
jurisdiction).

     3.5  Opinion of Counsel. The Company shall have delivered to Purchaser an
          -------------------
opinion dated as of the Closing Date, from the Company's counsel, Kirkpatrick &
Lockhart LLP, in the form of Exhibit E hereto.
                             ---------

     3.6  Purchase Permitted by Requirements of Law. The acquisition of and
          -----------------------------------------
payment for the Securities to be acquired by Purchaser at the Closing and the
consummation of the transactions contemplated hereby or by any of the other
Transaction Documents shall not be prohibited by any Requirements of Law.

     3.7  Required Consents. The Company shall have received all consents set
          -----------------
forth on Section 2.4(a) of the Company Disclosure Schedule.

     3.8  Note. The Note shall have been duly executed and delivered by the
          ----
Company.

     3.9  Warrant. The Warrant shall have been duly executed and delivered by
          -------
the Company.
<PAGE>

     3.10  Registration Rights Agreement. The Registration Rights Agreement
           -----------------------------
shall have been duly executed and delivered by the Company.

     3.11  Amended Loan Agreement. At the Closing, the Amended Loan Agreement
           ----------------------
shall reflect in all material respects terms and conditions that are
substantially similar to and in the aggregate are no less favorable to the
Company than those set forth in the Terms for Amended Loan Agreement attached
hereto as Exhibit C and shall have been duly executed and delivered by all
          ---------
parties thereto and no defaults or events which (with notice or lapse of time,
or both) would result in a default, shall exist thereunder or result from the
consummation of the transactions contemplated hereby. In addition, this
condition shall not be satisfied until Purchaser has had in its possession the
final form of the Amended Loan Agreement delivered pursuant to Section 7.4
hereof for at least twenty-four (24) hours.

     3.12  No Shareholder Approval Required. No approval on the part of the
           --------------------------------
shareholders of the Company shall be required, other than as contemplated by the
Transaction Documents, in connection with the execution and delivery by the
Company of this Agreement and the other Transaction Documents and the
consummation of the transactions to be performed by the Company contemplated by
the Transaction Documents, including the issuance of Common Stock upon the
conversion of the Note or the exercise of the Warrant.

                                  ARTICLE IV

              CONDITIONS TO THE OBLIGATION OF THE COMPANY TO CLOSE
              ----------------------------------------------------

     The obligations of the Company to issue and sell the Securities at the
Closing and to perform its other obligations hereunder at the Closing with
respect to Purchaser is subject to the fulfillment on or prior to the Closing of
all of the following conditions, any one or more of which may be waived by the
Company in its sole discretion:

     4.1  Representations and Warranties True. The representations and
          -----------------------------------
warranties of Purchaser contained in Section 6 hereof shall be true and correct
on and as of the Closing as if made on and as of such time.

     4.2  Compliance with this Agreement. Purchaser shall have performed and
          ------------------------------
complied in all material respects with all of its agreements, obligations,
covenants and conditions set forth in this Agreement or any other Transaction
Documents or contemplated herein or therein that are required to be performed or
complied with by Purchaser on or before the Closing.

     4.3  Purchaser's Officer's Certificate. The Company shall have received a
          ---------------------------------
certificate dated as of the Closing Date from a duly authorized officer of
Purchaser as to the accuracy of Sections 4.1 and 4.2 hereof.

     4.4  Issuance Permitted by Requirements of Law. The issuance of the
          -----------------------------------------
Securities to be issued by the Company hereunder at the Closing and the
consummation of the transactions contemplated hereby at the Closing shall not be
prohibited by any Requirement of Law.

     4.5  Receipt of Funds. The Company shall have received from Purchaser the
          ----------------
Purchase Price.

                                                                            -10-
<PAGE>

     4.6  Purchaser's Secretary's Certificate, Good Standing Certificates. The
          ---------------------------------------------------------------
Company shall have received a certificate from Purchaser dated the Closing Date
and signed by the Secretary or an Assistant Secretary of Purchaser (or such
other duly authorized officer of Purchaser), certifying (a) that the attached
copies of the Organizational Documents or other applicable governance documents
and resolutions of the Board of Directors of Purchaser approving this Agreement,
each of the other Transaction Documents and the transactions contemplated hereby
and thereby to which it is a party, are all true, complete and correct and
remain unamended and in full force and effect; (b) as to the incumbency and
specimen signature of each officer of Purchaser executing this Agreement and the
other Transaction Documents to which it is a party and any other document
delivered in connection herewith or therewith on behalf of Purchaser; and (c) as
to the good standing of Purchaser in the British Virgin Islands (to the extent
that this status of good standing is applicable in such jurisdiction).

     4.7  No Company Shareholder Approval Required. No approval on the part of
          ----------------------------------------
the shareholders of the Company shall be required, other than as contemplated
by the Transaction Documents, in connection with the execution and delivery by
the Company of this Agreement and the other Transaction Documents and the
consummation of the transactions to be performed by the Company contemplated by
the Transaction Documents, including the issuance of Common Stock upon the
conversion of the Note or the exercise of the Warrant.

                                   ARTICLE V

                 REPRESENTATIONS AND WARRANTIES OF THE COMPANY
                 ---------------------------------------------

     The Company hereby represents and warrants to Purchaser that, except as set
forth on the Company Disclosure Schedule, which exceptions shall be deemed to be
representations and warranties as if made hereunder (with the exception of the
representations and warranties contained in Section 5.25 herein, which
representations and warranties are unqualified by any exceptions in the Company
Disclosure Schedule):

     5.1  Existence, Qualification and Power. The Company and each of its
          ---------
Subsidiaries (a) is duly organized, validly existing and, if applicable, in good
standing, under the laws of the jurisdiction of its incorporation or
organization, (b) has the corporate or comparable power and authority to own its
property and assets and to transact the business in which it is engaged and
presently proposes to engage and (c) is duly qualified as a foreign corporation
or other business entity and, if applicable, is in good standing if its business
requires such qualification, in each case except where the failure of the
foregoing would not reasonably be expected to have a Material Adverse Effect.
Section 5.1 of the Company Disclosure Schedule identifies, as of the Closing
Date, each Subsidiary and the respective jurisdictions of their incorporation or
organization, the percentage of issued and outstanding shares of each class of
its capital stock (or other equity interest) owned by the Company and its
Subsidiaries and, if such percentage is not 100% (excluding directors'
qualifying shares or comparable equity interest as required by law), a
description of each class of its authorized capital stock (or other equity
interest) and the number of shares of each class issued and outstanding.

     5.2  Power and Authority; Authorization. The Company has the corporate
          ----------------------------------
power and authority and has been duly authorized by its Board of Directors to
execute, deliver and perform the

                                                                            -11-
<PAGE>

terms and provisions of each of the Transaction Documents. The shares of Common
Stock issuable upon conversion and exercise of the Securities have been duly
authorized and, as of the Closing, will be reserved for issuance and upon
issuance in accordance with the terms the Note and the Warrant will be validly
issued, fully paid and nonassessable, and will not have been issued in violation
of or be subject to any preemptive rights. No vote or approval of the Company's
stockholders is necessary in connection with the execution, delivery and, other
than as expressly contemplated by the Transaction Documents, performance by the
Company of any of the Transaction Documents, including the issuance of Common
Stock upon the conversion of the Note or the exercise of the Warrant. The
Company has duly executed and delivered each of the Transaction Documents and
each Transaction Document constitutes its legal, valid and binding obligation
enforceable in accordance with its terms, except to the extent that the
enforceability thereof may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws generally affecting creditors'
rights and by equitable principles (regardless of whether enforcement is sought
in equity or at law).

     5.3  No Violation. Neither the execution, delivery or performance by the
          ------------
Company of the Transaction Documents, nor compliance by it with the terms and
provisions thereof, (a) contravenes any Requirements of Law or any order, writ,
injunction or decree of any court or governmental instrumentality, (b) conflicts
or is inconsistent with or results in any breach of any of the terms, covenants,
conditions or provisions of, or constitutes a default under, or results in the
creation or imposition of (or the obligation to create or impose) any Lien upon
any of the property or assets of the Company or any of its Subsidiaries pursuant
to the terms of any indenture, mortgage, deed of trust, credit agreement, loan
agreement or any other material agreement, contract or instrument to which the
Company or any of its Subsidiaries is a party or by which it or any of its
property or assets are bound or to which it may be subject, except where such
conflict, inconsistency, breach, or default would not be material, or (c)
violates any provision of any Organizational Document of the Company or any of
its Subsidiaries.

     5.4  Governmental and Other Approvals. No order, consent, approval,
          --------------------------------
license, authorization or validation of, or filing, recording or registration
with, or exemption by, any Governmental Authority, or any subdivision thereof or
other Person is required to be obtained by the Company to authorize, or is
required for, (a) the execution, delivery and performance of any Transaction
Documents or (b) the legality, validity, binding effect, or enforceability
against the Company of any Transaction Documents.

     5.5  Financial Statements; Financial Condition. All audited year-end
          -----------------------------------------
financial statements heretofore delivered by the Company to Purchaser showing
historical performance of the Company for each of the fiscal years ended on or
before December 31, 1999 and December 31, 2000, and any unaudited quarterly
financial statements heretofore delivered by the Company to Purchaser, have been
prepared in accordance with GAAP applied on a basis consistent throughout the
periods involved, except as otherwise noted therein, and subject to ordinary,
good-faith year-end audit adjustments (none of which is material) and the
absence of footnotes in the case of any such quarterly financial statements.
Each of such financial statements fairly presents in all material respects on a
consolidated basis the financial condition of the Company and its Subsidiaries
as of the dates thereof and the results of operations and cash flows for the
periods covered thereby. The Company and its Subsidiaries included in such
financial statements have no liabilities (absolute, accrued, contingent or
otherwise) material to the business, results of operations or financial
condition of the Company and its Subsidiaries taken as a whole, other than

                                                                            -12-
<PAGE>

those
disclosed in the Company Disclosure Schedule or in such financial statements
referred to in this Section 5.5 or in comments or footnotes thereto. Since
                    -----------
September 30, 2001, there has been no (i) material change by the Company in its
accounting principles or practices, except as required by concurrent changes in
GAAP or (ii) revaluation by the Company of any of its assets or accounts
receivable, other than in the ordinary course of business and consistent with
past practice.

     5.6  Litigation; Labor Controversies.
          -------------------------------

          (a)  There are no actions, suits or proceedings pending or, to the
knowledge of the Company, threatened against the Company or any of its
Subsidiaries (i) which in any manner draws into question the validity or
enforceability of any Transaction Document or (ii) which, if decided adversely
to the Company or its Subsidiaries, could result in a liability of $1 million or
more.

          (b)  There are no labor controversies pending or, to the knowledge of
the Company, threatened against the Company or any of its Subsidiaries which
could have a Material Adverse Effect. Neither the Company nor any of its
Subsidiaries is engaged in any unfair labor practice in any material respect.

     5.7  Use of Proceeds; Margin Regulations.
          -----------------------------------

          (a)  All Proceeds of the Note shall be used by the Company (i) to
repay certain existing Indebtedness of the Company and its Subsidiaries, or (ii)
for the working capital and general corporate purposes of the Company and its
Subsidiaries.

          (b)  No part of the proceeds of the Note will be used by the Company
or any Subsidiary thereof to purchase or carry any margin stock or to extend
credit to others for the purpose of purchasing or carrying any margin stock.
Neither the sale of the Note nor the use of the proceeds thereof will violate or
be inconsistent with the provisions of Regulations T, U or X of the Board of
Governors of the Federal Reserve System.

     5.8  Tax Returns and Payments. Each of the Company and its Subsidiaries has
          ------------------------
timely filed or caused to be timely filed, on the due dates thereof or pursuant
to applicable extensions thereof, with the appropriate taxing authority, all
foreign, Federal and other material returns, statements, forms and reports for
Taxes (the "Tax Returns") required to be filed by or with respect to the income,
            -----------
properties or operations of the Company and any of its Subsidiaries. Each of the
Company and its Subsidiaries has paid all material taxes payable by them as set
forth in such Tax Returns other than taxes which are not delinquent, and other
than those contested in good faith and for which adequate reserves have been
established in accordance with GAAP. Such Tax Returns are true and correct in
all material respects and have been completed in accordance with applicable law.

     5.9  Compliance with ERISA. Each Company Plan is in substantial compliance
          ---------------------
with the material provisions of ERISA and the Code; no Reportable Event has
occurred with respect to any Plan; no Plan is insolvent or in reorganization;
the aggregate Unfunded Current Liability for all Plans does not exceed
$1,000,000, and no Plan has any accumulated or waived funding deficiency or has
applied for an extension of any amortization period within the meaning of
Section 412 of the Code; all material contributions required to be made with
respect to a Plan have been timely made; neither the Company nor any Subsidiary
of the Company nor any ERISA Affiliate has incurred any material liability to or
on

                                                                            -13-
<PAGE>

account of a Plan pursuant to Section 4062, 4063, 4064, 4069, 4201, 4204 or 4212
of ERISA or Section 401(a)(29), or 4971 of the Code; no proceedings have been
instituted to terminate, or to appoint a trustee to administer, any Plan other
than pursuant to Section 4041(b) of ERISA; and no Lien imposed under the Code or
ERISA on the assets of the Company or any Subsidiary of the Company or any ERISA
Affiliate arise on account of any Plan.

     5.10  Compliance with Statutes, Etc. Each of the Company and its
           -----------------------------
Subsidiaries is in compliance with all applicable statutes, regulations and
orders of, and all applicable restrictions imposed by all Governmental
Authorities in respect of the conduct of their businesses and the ownership of
their Properties, except any such noncompliance as would not reasonably be
expected to have, either individually or in the aggregate, a Material Adverse
Effect.

     5.11  Environmental Matters.
           ---------------------

           (a)  In the ordinary course of its business, the Company and its
Subsidiaries conduct from time to time, in a commercially reasonable manner, a
review of the operations of the Company and its Subsidiaries for the purpose of
determining compliance with Environmental Laws, in the course of which the
Company identifies and evaluates associated liabilities and costs (including any
capital or operating expenditures required for clean-up or closure of Properties
currently or previously owned, any capital or operating expenditures required to
achieve or maintain compliance with Environmental Laws and any actual or
potential liabilities to third parties, including employees or governmental
entities, and any related costs and expenses). The Company has (i) complied in
all material respects with all Environmental Laws and (ii) stored, handled,
used, released, discharged and disposed of all substances used in its operations
and wastes or by-products from its operations, whether Hazardous Materials or
not, in compliance in all material respects with all Environmental Laws.

           (b)  Neither the Company nor any Subsidiary has given, nor to the
Company's best knowledge is it required to give, nor has it received, any
written notice, letter, citation, order, warning, complaint, inquiry, claim or
demand to or from any governmental entity or in connection with any court
proceeding claiming that: (i) the Company or any Subsidiary has violated, or is
about to violate, any Environmental Law; (ii) there has been a release, or that
there is a reasonable risk of release, of Hazardous Materials from the Company's
or any Subsidiary's Property, facilities, equipment or vehicles; (iii) the
Company or any Subsidiary may be or is liable, in whole or in part, for the
costs of cleaning up, remediating or responding to a release of Hazardous
Materials; or (iv) any of the Company's or any Subsidiary's Property or assets
are subject to a Lien in favor of any governmental entity for any liability,
costs or damages, under any Environmental Law arising from, or costs incurred by
such governmental entity in response to, a release of a Hazardous Materials, in
each case which is material.

     5.12  Investment Company Act. Neither the Company nor any of its
           ----------------------
Subsidiaries is an "investment company" or a company "controlled" by an
"investment company" within the meaning of the Investment Company Act of 1940.

     5.13  Public Utility Holding Company Act. Neither the Company nor any of
           ----------------------------------
its Subsidiaries is a "holding company," or a "subsidiary company" of a "holding
company," or an "affiliate" of a "holding company" or of a "subsidiary company"
of a "holding company" within the meaning of the Public Utility Holding Company
Act of 1935.

                                                                            -14-
<PAGE>

     5.14 Intellectual Property.
          ---------------------

          (a)  No Company Intellectual Property or product or service of the
Company or any of its Subsidiaries is subject to any proceeding or outstanding
decree, order, judgment, contract, license, agreement, or stipulation
restricting in any manner the use, transfer, or licensing thereof by the Company
or any of its Subsidiaries, other than in the ordinary course of business, or
which may affect the validity, use or enforceability of such Company
Intellectual Property.

          (b)  The Company and its Subsidiaries own and have good and exclusive
title to all Company Intellectual Property free and clear of any material liens
or encumbrances (excluding non-exclusive licenses). The Company has licenses
(sufficient for the conduct of its business as currently conducted) to all other
material Intellectual Property used by the Company.

          (c)  Neither the Company nor any of its Subsidiaries has transferred
ownership of, or granted any exclusive license with respect to, any Intellectual
Property that is or was, at any time after January 1, 1999, Company Intellectual
Property, to any third party except to customers pursuant to written agreements
in the ordinary course of business.

          (d)  The operation of the business of the Company and its Subsidiaries
as such business currently is conducted has not and does not materially infringe
or misappropriate the Intellectual Property of any third party or, to its
knowledge, constitute unfair competition or trade practices under the laws of
any jurisdiction.

          (e)  Neither the Company nor any of its Subsidiaries has received
notice from any third party that the operation of the business of the Company or
any of its Subsidiaries materially infringes or misappropriates the Intellectual
Property of any third party or constitutes unfair competition or trade practices
under the laws of any jurisdiction.

          (f)  To the Company's knowledge, no person has materially infringed or
misappropriated or is materially infringing or misappropriating any Company
Intellectual Property.

          (g)  The Company and each of its Subsidiaries have taken reasonable
steps to protect the Company's and its Subsidiaries' rights in the Company's
confidential information and trade secrets that it wishes to protect or any
trade secrets or confidential information of third parties provided to the
Company except where the failure to do so is not reasonably expected to have a
Material Adverse Effect on the Company and its Subsidiaries.

     5.15 Properties.  Each of the Company and its Subsidiaries has good title
          -----------
to all material Properties owned by them, free and clear of all Liens.

     5.16 Solvency.  Immediately prior to the Closing Date, (a) the sum of the
          --------
assets, at a fair valuation, of the Company (on a stand-alone basis) and the
Company and its Subsidiaries (taken as a whole) will exceed the debts of the
Company (on a stand-alone basis) or the Company and its Subsidiaries (taken as a
whole), as applicable; (b) the Company (on a stand-alone basis) and the Company
and its Subsidiaries (taken as a whole) have not incurred and do not intend to,
or believe that they will, incur debts beyond their ability to pay such debts as
such debts mature; and (c) the Company (on a stand-alone basis) and the Company
and its Subsidiaries (taken as a whole) will have sufficient

                                                                            -15-
<PAGE>

capital and assets with which to conduct their businesses. For purposes of this
Section 5.16, "debt" means any liability on a claim, and "claim" means (i) right
------------
to payment, whether or not such right is reduced to judgment, liquidated,
unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed,
legal, equitable, secured, or unsecured; or (ii) right to an equitable remedy
for breach of performance if such breach gives rise to a payment, whether or not
such right to an equitable remedy is reduced to judgment, fixed, contingent,
matured, unmatured, disputed, undisputed, secured or unsecured.

     5.17  Capitalization.  On the Closing Date, (a) the authorized and issued
           --------------
capital stock (or other equity interest) of the Company and its Subsidiaries,
and (b) the corporate organizational structure of the Company and its
Subsidiaries, are as set forth in Sections 5.1 and 5.17 of the Company
Disclosure Schedule. All outstanding shares of capital stock of the Company have
been duly and validly issued, and are fully paid and nonassessable. As of the
Closing Date, the Company and its Subsidiaries do not have outstanding any
securities convertible into or exchangeable for its capital stock or outstanding
any rights to subscribe for or to purchase, or any options for the purchase of,
or any agreements providing for the issuance (contingent or otherwise) of, or
any calls, commitments or claims of any character relating to, its capital stock
(or other equity interest), except for employee and director stock options and
rights under the Rights Agreement. As of December 31, 2001, the Company had
reserved an aggregate of 8,284,739 shares of its Common Stock for issuance to
employees, consultants and directors pursuant to its stock option plans, under
which options are outstanding for 7,363,939 shares of Common Stock and 920,800
shares of Common Stock are available for grant. All shares of Common Stock
subject to issuance as aforesaid, upon issuance on the terms and conditions
specified in the instruments pursuant to which they are issuable, would be duly
authorized, validly issued, fully paid and non-assessable.

     5.18  Commission Filings.  Since December 31, 1998, the Company has filed
           -------------------
with the Commission, on a timely basis, all registration statements, reports on
Form 10-K, 10-Q and 8-K, proxy statements and information statements, and other
documents that it was required to file under the Securities Act or the Exchange
Act. As of the respective dates of such filings, none of the Company's filings
with the Commission contained (and the Company's most recent Form 10-K does not
contain) an untrue statement of a material fact or omitted (and the Company's
most recent Form 10-K does not omit) to state any material fact necessary to
make any statement of a material fact that it contained, in light of the
circumstances in which made, not misleading; and when filed with the Commission,
each of such filings with the Commission complied in all material respects with
the applicable requirements of the Securities Act or Exchange Act, as
applicable. The Company is not required to file with the Commission any
amendments or modifications to agreements, documents or other instruments
previously filed with the Commission. The Company is eligible to file a
registration statement on Form S-3 and has taken all actions which would be
required to permit sales of its securities under Rule 144 under the Securities
Act.

     5.19  Securities Act.  Based upon the representations and warranties of
           ---------------
Purchaser in Section 6 of this Agreement, the Common Stock issuable upon
conversion and exercise of the Securities are not required to be registered
under the Securities Act or under the securities or blue sky laws of any state
or jurisdiction.

     5.20  Absence of Changes.  Since September 30, 2001, there has not been a
           ------------------
Material Adverse Effect on the Company and no event or circumstance exists that
may result in a Material Adverse Effect.
                                                                            -16-
<PAGE>

     5.21  Customers.   Section 5.21 of the Company Disclosure Schedule sets
           ---------
forth a complete and accurate list of the ten largest customers (by dollar
volume) of the Company during the most recent fiscal year.

     5.22  Suppliers.   Section 5.22 of the Company Disclosure Schedule sets
           ----------
forth a complete and accurate list of all sole-source suppliers of materials or
services to the Company. There exists no actual or, to the knowledge of the
Company, threatened termination, cancellation or material limitation of, or any
material modification or change in, the business relationship of the Company
with any supplier or group of suppliers listed on Section 5.22 of the Company
Disclosure Schedule.

     5.23  Product Warranties, Defects, Liability.   Each product manufactured,
           --------------------------------------
sold, leased, or delivered by the Company has been in conformity with all
applicable contractual commitments and all express and implied warranties except
as otherwise could not result in a Material Adverse Effect. The Company does not
have any liability (and, to the Company's knowledge, there is no basis for any
present or future action, suit, proceeding, hearing, investigation, charge,
complaint, claim, or demand against it giving rise to any liability) for
replacement or repair thereof or other damages in connection therewith, subject
only to the reserve for product warranty claims set forth on the Company's
balance sheet dated as of September 30, 2001 and a reasonable reserve for
products manufactured, sold, leased or delivered by the Company or any of its
Subsidiaries in the ordinary course of business consistent with past practice
after September 30, 2001, and except for any liability or other damages that
could result in a Material Adverse Effect.

     5.24  No Illegal Payments, Etc.  Neither the Company nor, to the knowledge
           -------------------------
of the Company, any of its officers, employees, agents or Affiliates has: (a)
directly or indirectly given or agreed to give any illegal gift, contribution,
payment or similar benefit to any supplier, customer, governmental official or
employee or other person who was or is in a position to help or hinder the
Company's business (or assist in connection with any actual transaction) or made
or agreed to make any illegal contribution, or reimbursed any illegal political
gift or contribution made by any other person, to any candidate for federal,
state, local or foreign public office which may subject the Company to any
damage or penalty in any civil, criminal or governmental litigation or
proceeding or (b) established or maintained any unrecorded fund or asset or made
any false entries on any books or records for any purpose.

     5.25 Claims by Other Investors.   There is no basis for any claim against
          --------------------------
the Company by any third party investor or potential investor with whom the
Company has negotiated a potential investment in the Company, other than
reimbursement of actual expenses of such third party investor or potential
investor not in excess of an aggregate of $450,000 and for which the Company has
received from such third party a general release of claims.

     5.26  Rights Agreement.   The Company, including its Board of Directors,
           ----------------
has irrevocably taken all actions necessary such that (a) the transactions
themselves contemplated by this Agreement or by the Transaction Documents,
including the issuance of Common Stock upon the conversion of the Note or the
exercise of the Warrant, will not trigger the rights under the Rights Agreement
as currently in effect, and (b) after expiration of the Standstill Period with
respect to Section 8.1(a) pursuant to Section 8.3, Purchaser will be able to
acquire 1,700,000 shares of Common Stock (as appropriately adjusted for stock
splits, combinations and the like, and in addition to the shares of Common Stock
issuable upon

                                                                            -17-
<PAGE>

conversion of the Note and exercise of the Warrant) without triggering the
rights under the Rights Agreement as then in effect.

     5.27  Amended Loan Agreement.   As of the Closing, the Amended Loan
           ----------------------
Agreement shall be in full force and effect and reflect in all material respects
terms and conditions that are substantially similar to and in the aggregate are
no less favorable to the Company than those set forth in the terms of the
Amended Loan Agreement attached hereto as Exhibit C.
                                          ---------

     5.28  Representations Complete.   None of the representations or warranties
           ------------------------
made by the Company in this Agreement or any other Transaction Document nor any
statement made in any schedule or certificate furnished by the Company in
connection herewith or therewith contains any untrue statement of a material
fact or omits to state any material fact necessary in order to make the
statements herein or therein not misleading, in light of the circumstances under
which they are made.

                                  ARTICLE VI

                  REPRESENTATIONS AND WARRANTIES OF PURCHASER
                  -------------------------------------------

     Purchaser represents and warrants to the Company, as follows:

     6.1  Existence, Qualification and Power.  Purchaser (a) is duly organized,
          ----------------------------------
validly existing and, if applicable, in good standing, under the laws of the
jurisdiction of its organization, (b) has the corporate or comparable power and
authority to own its property and assets and to transact the business in which
it is engaged and presently proposes to engage and (c) is duly qualified as a
foreign corporation or other business entity and, if applicable, is in good
standing if its business requires such qualification, in each case except where
the failure of the foregoing would not reasonably be expected to have a material
adverse effect on Purchaser.

     6.2  Power and Authority; Authorization.  Purchaser has the corporate power
          -----------------------------------
and authority and has been duly authorized by all requisite corporate action to
execute, deliver and perform the terms and provisions of each of the Transaction
Documents. Purchaser has duly executed and delivered each of the Transaction
Documents and each Transaction Document constitutes its legal, valid and binding
obligation enforceable in accordance with its terms, except to the extent that
the enforceability thereof may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws generally affecting creditors'
rights and by equitable principles (regardless of whether enforcement is sought
in equity or at law).

     6.3  No Violation.  Neither the execution, delivery or performance by
          ------------
Purchaser of the Transaction Documents, nor compliance by it with the terms and
provisions thereof, (a) contravenes any Requirements of Law or any order, writ,
injunction or decree of any court or governmental instrumentality, (b) conflicts
or is inconsistent with or results in any breach of any of the terms, covenants,
conditions or provisions of, or constitutes a default under, or results in the
creation or imposition of (or the obligation to create or impose) any Lien upon
any of the property or assets of the Purchaser pursuant to the terms of any
indenture, mortgage, deed of trust, credit agreement, loan agreement or any
other material agreement, contract or instrument to which Purchaser is a party
or by

                                                                            -18-
<PAGE>

which it or any of its property or assets are bound or to which it may be
subject, except where such conflict, inconsistency, breach or default would not
reasonably be expected to result in a material adverse effect on its ability to
consummate the transactions contemplated hereby and by the other Transaction
Documents or (c) violates any provision of any Organizational Document of
Purchaser.

     6.4  Governmental and Other Approvals.  Except as set forth on Section 5.4
          --------------------------------
of the Company Disclosure Schedule, no order, consent, approval, license,
authorization or validation of, or filing, recording or registration with, or
exemption by, any Governmental Authority, or any subdivision thereof, or other
Person is required to be obtained by Purchaser to authorize, or is required for,
(a) the execution, delivery and performance of any Transaction Documents or (b)
the legality, validity, binding effect or enforceability of any Transaction
Documents.

     6.5  Accredited Investor; Purchase for Own Account.  Purchaser is an
          ----------------------------------------------
"accredited investor" within the meaning of Regulation D under the Securities
Act. The Securities and the shares of Common Stock to be issued upon conversion
and/or exercise of the Securities are being or will be acquired for its own
account and with no intention of distributing or reselling such securities or
any part thereof in any transaction that would be in violation of the Securities
Act or the securities laws of any state, without prejudice, however, to the
rights of Purchaser at all times to sell or otherwise dispose of all or any part
of such shares of Common Stock under an effective registration statement under
the Securities Act, or under an exemption from such registration available under
the Securities Act. If Purchaser should in the future decide to dispose of such
shares of Common Stock issued upon conversion and/or exercise of the Securities,
Purchaser understands and agrees that it may do so only in compliance with the
Securities Act and applicable state securities laws, as then in effect.
Purchaser agrees to the imprinting, so long as required by law, of a legend on
the Note, the Warrant and certificates representing such shares of Common Stock
issued upon conversion and/or exercise of the Securities to the following effect
(in addition to such other legends as may be required pursuant to the terms of
the Note and the Warrant):

     "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
     UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY
     STATE AND MAY NOT BE SOLD OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN
     EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE
     SECURITIES LAWS OR PURSUANT TO AN APPLICABLE EXEMPTION FROM THE
     REGISTRATION REQUIREMENTS OF SUCH ACT AND SUCH LAWS."

     The requirement to include the legend set forth above shall cease and
terminate as to the Note, the Warrant and any particular shares of such Common
Stock (a) when, in the opinion of counsel to the Company, such legend is no
longer required in order to assure compliance by the Company with the Securities
Act or (b) when such shares have been effectively registered under the
Securities Act or transferred pursuant to Rule 144.  Whenever (x) such
requirement shall cease and terminate as to any such shares or (y) such shares
shall be transferable under paragraph (k) of Rule 144, the holder thereof shall
be entitled to receive from the Company, without expense, new certificates not
bearing the legend set forth above.

                                                                            -19-
<PAGE>

     6.6  Ownership of Company Securities; Voting and Other Agreements.
          -------------------------------------------------------------
Immediately following the Closing, Purchaser and its Affiliates will not
beneficially own any securities of the Company other than the Securities.
Purchaser does not have any agreements, arrangements or understandings with any
other Person with regard to acquiring, holding, voting or disposing of the
securities of the Company other than as set forth in this Agreement and in the
other Transaction Documents to which Purchaser is a party.

     6.7  Litigation.  No claim, action, proceeding or investigation is pending
          ----------
before any court, arbitrator or administrative, governmental or regulatory or
body that may delay or prevent the consummation of the transactions contemplated
hereby or that would be reasonably likely to materially and adversely affect or
restrict Purchaser's ability to consummate the transactions contemplated hereby.

     6.8  No Brokers or Finders.  Except as disclosed on Schedule 6.8, no agent,
          ---------------------
broker, finder, or investment or commercial banker or other Person or firm
engaged by or acting on behalf of Purchaser in connection with the negotiation,
execution or performance of this Agreement or the transactions contemplated
herein is or will be entitled to any brokerage or finder's or similar fee or
other commission as a result of this Agreement or such transaction.

     6.9  Reliance.  Purchaser acknowledges it has based its decision to
          ---------
purchase the Secrities and has relied solely on Purchaser's own due diligence
review of the Company, including interviews of and discussions with Company
officers, and the representations and warranties of the Company contained
herein. As of the Closing, Purchaser does not have any actual knowledge of any
material breach of any of the representations and warranties of the Company
contained herein.

                                  ARTICLE VII

                                   COVENANTS
                                   ---------
     7.1  Further Assurances.  Each of the parties shall, prior to or at the
          ------------------
Closing, as may be appropriate, execute such documents and other papers and take
such other further actions as may be reasonably required to carry out the
provisions hereof and effectuate the transactions contemplated hereby, and by
the other Transaction Documents. Each party shall use its best efforts to
fulfill or obtain the fulfillment of the conditions to its obligation to effect
the Closing, including, without limitation, promptly obtaining any consents
required in connection herewith.

     7.2  Additional Disclosure.  The Company shall promptly notify Purchaser in
          ---------------------
writing of, and furnish Purchaser with, any information Purchaser may reasonably
request with respect to the occurrence of any event or condition or the
existence of any fact that would cause any of the conditions to Purchaser's
obligation to consummate the transactions contemplated by this Agreement not to
be fulfilled.

     7.3  Schedule 13D and 13G.  Purchaser agrees to file an initial Schedule
          ---------------------
13D or 13G with the Commission with respect to the transaction contemplated
hereby and by the other Transaction Documents as soon as practical after the
date hereof which shall be mutually acceptable to the parties hereto and not
inconsistent with all press releases issued by the parties in connection
herewith. Purchaser

                                                                            -20-
<PAGE>

agrees to provide the Company with a copy of any subsequent Schedule 13D or 13G
that it intends to file with the Commission four (4) days in advance of such
filing, or such shorter time as the Company may agree.

     7.4  Delivery of Amended Loan Agreement.  The Company shall deliver to
          ----------------------------------
Purchaser all drafts of the Amended Loan Agreement, including all exhibits,
schedules, attachments, appendices, and the like attached or related thereto,
concurrently with if such are in electronic format and in any event not later
than the next Business Day of, delivery of such between the Company and the
other parties thereto. In addition, the Company shall deliver to Purchaser the
final form of the Amended Loan Agreement, clearly indicating it as such final
form, including all final forms of exhibits, schedules, attachments, appendices,
and the like attached or related thereto.

     7.5  Shareholder Approval.  The Company shall comply with the provisions
          --------------------
set forth in the Securities in connection with a meeting of the Company's
shareholders as provided thereunder.

     7.6  Regulatory Filings.  If issuance of the full number of shares of
          ------------------
Common Stock issuable upon any conversion of the Note or exercise of the Warrant
(in whole or in part) would require the Company and the holder of the Note or
Warrant to each file a Notification and Report Form (an "HSR Filing") and
                                                         ----------
related material with the Federal Trade Commission ("FTC") and the Antitrust
                                                     ---
Division of the United States Department of Justice ("DOJ") under the
                                                      ---
Hart-Scott-Rodino Antitrust Improvement Act of 1976, as amended (the "HSR Act"),
                                                                      -------
the Company and such holder shall cooperate in good faith to submit such HSR
Filing. The Company shall not seek early termination of any waiting period under
the HSR Act without the prior written consent of the holder; provided, however,
                                                             --------  -------
that if the holder so requests, the Company and the holder shall each use all
reasonable efforts to obtain early termination of such waiting period, and shall
in any case promptly supply the other with any information which may be required
in order to effectuate such filings and supply any additional information which
may be reasonably required by the FTC or DOJ.

     7.7  Most Favored Nation Treatment Under Rights Agreement.  If (a) (i) the
          -----------------------------------------------------
Company shall consummate any transaction with a third Person in which the
Company issues its equity securities and/or any securities convertible into or
exerciseable for equity securities or (ii) a third Person otherwise acquires the
Company's equity securities, (b) all or any portion of which issuance or
acquisition is excluded from triggering the application of the Rights Agreement
and (c) which excluded securities represent a percentage of the Company's
outstanding securities which is greater than the percentage of the Company's
outstanding securities which Purchaser is entitled to purchase under the
Transaction Documents without triggering the application of the Rights
Agreement, then the Company shall take all actions which may be necessary to
enable Purchaser to purchase an equivalent percentage of the Company's equity
securities without triggering the application of the Rights Agreement.

     7.8  Nasdaq Listing.  The Company shall file a listing application with
          --------------
Nasdaq National Market for the shares of Common Stock issuable upon conversion
of the Note and exercise of the Warrant and use its best efforts to maintain the
listing of such shares on Nasdaq National Market (or a comparable system then in
use) or the New York Stock Exchange or other national exchange for a period of
not less than three (3) years from the date of issuance of such shares.

                                                                            -21-
<PAGE>

                                 ARTICLE VIII

                           PROXY MATTERS; STANDSTILL
                           -------------------------

     8.1  Proxy Matters; Standstill. Purchaser hereby agrees that during the
          -------------------------
Standstill Period, without the approval of the Board of Directors of the Company
or as set forth herein, it will not, nor will it permit any member of the
Purchaser Group, to, directly or indirectly, alone or in concert with any other
Person:

          (a)  acquire, offer to acquire, seek to acquire or agree to acquire,
including, by joining a partnership, limited partnership, syndicate or other
"group" (as such term is used in Section 13(d)(3) of the Exchange Act,
hereinafter referred to as "13D Group") any securities of the Company entitled
to vote generally in the election of directors, or securities convertible into
or exercisable or exchangeable for such securities other than (i) Series A
Participating Preferred Stock acquired pursuant to the terms of the Rights
Agreement and the Common Stock received on conversion thereof; (ii) the Common
Stock received on conversion and exercise of the Securities; and (iii) capital
stock acquired in connection with a stock split, stock dividend or similar
recapitalization by the Company (collectively, "Restricted Securities");
                                                ---------------------

          (b)  make a tender offer, exchange offer or other offer for voting
securities of the Company (other than through open market purchases after
termination of the restrictions in paragraph (a) above), or otherwise make, or
in any way participate in, directly or indirectly, any "solicitation" of
"Proxies" (as such terms are defined or used in Regulation 14A under the
Exchange Act) or become a "participant" in any "election contest" (as such terms
are defined or used in Rule 14a-11 under the Exchange Act, but whether or not
such solicitation is exempt under Rule 14a-2 under the Exchange Act) with
respect to the Company, or initiate, propose or otherwise solicit stockholders
for the approval of one or more stockholder proposals with respect to the
Company or induce or attempt to induce any other person to initiate or propose
any stockholder proposal, or seek to advise, encourage or influence any Person
with respect to the voting of any securities of the Company; or

          (c)  directly or indirectly join in or in any way participate in a
pooling agreement, syndicate, voting trust or other similar arrangement with
respect to the Company's voting securities or otherwise act in concert with any
other Person (other than member of the Purchaser Group), for the purpose of
acquiring, holding, voting or disposing of the Company's securities.

     8.2  No Limitation on Voting Rights, Etc. Except as otherwise expressly
          -----------------------------------
prohibited by this Section 8 or the restrictions on voting "HSR Excess Shares"
as that term is defined in Section 1.7 of the Warrant and Section 2(a)(7) of the
Note, Purchaser (and any other member of the Purchaser Group to which the
Securities have been transferred in accordance with the terms therein), upon
conversion of the Securities, shall have the full right to exercise the voting
and other rights incident to Common Stock in connection with any proposed
merger, sale of assets or similar transaction, or tender or exchange offer
proposed by any Person who is not part of, and who is not acting in concert
with, any member of the Purchaser Group.

                                                                            -22-
<PAGE>

     8.3  Standstill Period. As used herein, the term "Standstill Period" shall
          -----------------
mean the period from the date of this Agreement until the earliest to occur of:

          (a)  with respect to Section 8.1(a) only, the date which is eighteen
(18) months after the Closing Date, unless the Note has been fully paid in cash
prior to such date, in which case such earlier date;

          (b)  with respect to Sections 8.1(b) and (c) only (notwithstanding
Section 8.3(a)), the date which is the third anniversary of the Closing Date,
unless the Note has been fully paid in cash prior to such date, in which case
such earlier date;

          (c)  the designation of any date as the termination date of the
Standstill Period by a majority of the directors of the Company at a duly
convened meeting thereof or by all of the directors of the Company by written
consent;

          (d)  (i) commencement by the Company or any of its Significant
Subsidiaries of a voluntary case concerning itself under Title 11 of the United
States Code entitled "Bankruptcy" as now or hereafter in effect, or any
successor thereto (the "Bankruptcy Code"); (ii) an involuntary case being
commenced against the Company or any of its Significant Subsidiaries that is not
dismissed within ninety (90) days after commencement thereof; (iii) the Company
or any of its Significant Subsidiaries commencing any other proceeding under any
reorganization, arrangement, adjustment of debt, relief of debtors,
rehabilitation, dissolution, insolvency or liquidation or similar law of any
jurisdiction, whether now or hereafter in effect, relating to the Company or
such Significant Subsidiary, or there being commenced against the Company or any
of its Significant Subsidiaries any such proceeding which remains undismissed
for a period of ninety (90) days; (iv) any order of relief or other order
approving any such case or proceeding being entered; or (v) any corporate action
being taken by the Company or any of its Significant Subsidiaries for the
purpose of effecting any of the foregoing;

          (e)  the commencement of a tender offer for all or substantially all
of the securities of the Company by any Person or 13D Group (other than members
of the Purchaser Group), which tender offer, if consummated and added to the
Restricted Securities (if any) already owned by such Person or 13D Group, would
represent thirty percent (30%) or more of the total voting power (including
rights to acquire voting power) of the Company's Restricted Securities;
provided, however, that pursuant to Rule 14d-9 the Board of Directors of the
Company has recommended that the Company's shareholders tender into such tender
offer;

          (f)  the execution of a definitive agreement between the Company and
any third party (other than a member of the Purchaser Group) that provides for
such third party acquiring beneficial ownership of more than twenty percent
(20%) of the Company's voting stock;

          (g)  upon the Company's material breach of Articles VII, IX or X
hereof, Sections 2, 3, 4, or 6 of the Note, Sections 1 or 2 of the Warrant, or
Sections 2, 3, 4, 5, 7, or 8 of the Registration Rights Agreement; or

          (h)  the date this Agreement is terminated in accordance with its
terms, provided Purchaser has not purchased the Securities.

                                                                            -23-
<PAGE>

                                  ARTICLE IX

               RIGHT OF FIRST NEGOTIATION; BOARD OBSERVER RIGHTS
               -------------------------------------------------

     9.1  Right of First Negotiation.
          --------------------------

          (a)  Rights of Purchaser. After the Closing, in the event that
               -------------------
management of the Company or the Board of Directors of the Company:

                    (i)   receives a proposal, oral, written or otherwise, that
contemplates (A) a merger, consolidation or other business combination (whether
or not the Company is the survivor) pursuant to which the shareholders of the
Company immediately prior to the effective date of such transaction would have
beneficial ownership of less than fifty percent (50%) of the total combined
voting power for election of directors of the surviving corporation immediately
following such transaction, (B) the sale of all or substantially all of the
assets of the Company on a consolidated basis or (C) the sale or other
disposition of the power supply business or all or substantially all, or any
material portion of, the assets, property or products thereof (each, an
"Acquisition Offer"), or
 -----------------

                    (ii)  takes any action or determines to take action in
furtherance of the Company's initiation of (including inducing a third party to
initiate) (A) the sale of fifteen percent (15%) or more of the total voting
power of the Company (other than with respect to a Competitive Acquisition or a
Bona Fide Public Offering), (B) the sale of all or substantially all of the
assets of the Company on a consolidated basis or (C) the sale of or other
disposition of the power supply business or all or substantially all, or any
material portion of, the assets, property or products thereof (each, an
"Acquisition Proposal"),
 --------------------

          the Company will consider Purchaser as the first potential acquiror or
purchaser therefor, as the case may be; provided, however, that the Company
                                        --------  -------
shall not, for a period of six (6) months from the Closing Date (the "Waiting
                                                                      -------
Period"), vote to initiate or effect any sale described in this subsection (a)
------
with any Person other than Purchaser or other member of the Purchaser Group.

          (b)  Notice. The Company shall provide to Purchaser written notice as
               ------
promptly as possible and in any event within two (2) Business Days (the
"Notice") after its receipt of the Acquisition Offer or before making the
 ------
Acquisition Proposal (including any material modification to a previously made
Acquisition Offer or Acquisition Proposal), as the case may be. The Notice shall
include the material terms of the Acquisition Offer or Acquisition Proposal.
Further, subject to Purchaser entering into a customary confidentiality
agreement, the Company shall provide information and access to its facilities
and personnel reasonably necessary to evaluate whether Purchaser wishes to make
an offer in response to the Acquisition Offer or the Acquisition Proposal (or
any material modification thereof).

          (c)  Purchaser's Exclusive Offer. During the first thirty (30) days
               ---------------------------
after receipt by Purchaser of the Notice related to any Acquisition Offer or
Acquisition Proposal received or made, as the case may be, after the Waiting
Period and on or prior to eighteen (18) months after the Closing Date (the
"Exclusive Offer Period"), which Exclusive Offer Period may be extended or
 ----------------------
reduced by mutual written agreement, Purchaser shall be entitled to submit a
written offer to enter into the transaction described in

                                                                            -24-
<PAGE>

the Acquisition Offer or Acquisition Proposal or any alternative transaction
(the "Exclusive Offer"). During the Exclusive Offer Period, the Company will
      ---------------
not:

                    (i)    provide information to any third party (other than
Purchaser) in connection with the Acquisition Offer or Acquisition Proposal;

                    (ii)   enter into negotiations with a Person other than
Purchaser;

                    (iii)  enter into a confidentiality agreement with a Person
other than Purchaser; or

                    (iv)   enter into a binding contract for an Acquisition
Offer or Acquisition Proposal with a Person other than Purchaser.

          If Purchaser submits an Exclusive Offer, the Company and Purchaser
shall negotiate in good faith until the later of (i) ten (10) Business Days from
receipt by the Company of the Exclusive Offer or (ii) the end of the Exclusive
Offer Period (the "Exclusive Negotiation Period"), which may be extended or
                   ----------------------------
reduced by mutual written agreement, in an effort to reach agreement on mutually
agreeable terms.  At the end of the Exclusive Negotiation Period, the Company
shall either accept or reject the Exclusive Offer as negotiated through such
date.

          In the event that (i) Purchaser does not deliver an Exclusive Offer to
the Company within the Exclusive Offer Period (or other mutually agreed upon
time period, as set forth above) or (ii) the Company elects not to accept the
Exclusive Offer within the Exclusive Negotiation Period (or other mutually
agreed upon time period, as set forth above), then, and only then, the Company
shall be free thereafter to enter into a definitive agreement that consummates
the transactions contemplated by an Acquisition Offer or Acquisition Proposal
with any Person; provided, however, that five (5) days prior to entering into a
                 --------  -------
legally binding agreement concerning such Acquisition Offer or Acquisition
Proposal with any Person, the Company shall provide a written notice to
Purchaser describing the material terms of such proposed binding agreement, and
Purchaser shall have an opportunity to present an additional Exclusive Offer
during such five (5) day period; provided, further, that, if the Company rejects
                                 --------  -------
such Exclusive Offer or additional Exclusive Offer, it shall not accept any (A)
Acquisition Offer or offer in respect of an Acquisition Proposal in respect of
which a Notice has been delivered hereunder, unless it is a Superior Proposal or
(B) any Acquisition Offer or offer in respect of an Acquisition Proposal, in
respect of which no Notice has been given in accordance herewith.

          (d)  Purchaser's Offer. During the first seven (7) days (the "Blackout
               -----------------                                        --------
Period") from receipt by Purchaser of the Notice related to any Acquisition
------
Offer or Acquisition Proposal received or initiated, as the case may be, after
eighteen (18) months from the Closing Date the Company shall not:

                    (i)    provide information to any third party (other than
Purchaser) in connection with the Acquisition Offer or Acquisition Proposal;

                    (ii)   enter into negotiations with a Person other than
Purchaser;

                    (iii)  enter into a confidentiality agreement with a Person
other than Purchaser; or

                                                                            -25-
<PAGE>

                    (iv)   enter into a binding contract for an Acquisition
Offer or Acquisition Proposal with a Person other than Purchaser.

          During the twenty (20) days from receipt of such Notice by Purchaser
(the "Offer Period"), which Offer Period may be extended or reduced by mutual
      ------------
written agreement, Purchaser shall be entitled to submit a written offer to
enter into the transaction described in the Acquisition Offer or Acquisition
Proposal or any alternative transaction (the "Offer").  At no time during the
                                              -----
Offer Period will the Company enter into a binding contract for an Acquisition
Offer or Acquisition Proposal with a Person other than Purchaser.  If Purchaser
submits an Offer, the Company and Purchaser shall negotiate in good faith for a
period of twenty (20) Business Days from delivery of the Offer to the Company
(the "Negotiation Period"), which may be extended or reduced by mutual written
      ------------------
agreement, in an effort to reach agreement on mutually agreeable terms.  At any
time during the Negotiation Period (but after the Blackout Period), the Company
will be free to entertain offers from, provide information to and negotiate with
other Persons and will provide (without extending the Negotiation Period)
Notices to Purchaser in accordance herewith with respect to any new Acquisition
Offer and any material changes in any Acquisition Offer a Notice of which has
been previously delivered, but the Company will not enter into a binding
contract with respect thereto with any such Person.  At the end of the
Negotiation Period, the Company shall either accept or reject the Offer as
subsequently negotiated.

          In the event that (i) Purchaser does not deliver an Offer to the
Company within the Offer Period (or other mutually agreed upon time period, as
set forth above) or (ii) the Company elects not to accept the Offer within the
Negotiation Period (but after the Blackout Period, or other mutually agreed upon
time period, as set forth above), then, and only then, the Right of First
Negotiation of Purchaser hereunder shall expire with respect to any Acquisition
Offer or Acquisition Proposal in respect of which Notice has been delivered in
accordance herewith and the Company shall be free thereafter to enter into a
definitive agreement with any Person; provided, that, if the Company rejects
                                      --------
such Offer, it shall not accept any (A) Acquisition Offer or offer in respect of
an Acquisition Proposal in respect of which a Notice has been delivered
hereunder, unless it is a Superior Proposal or (B) any Acquisition Offer or
offer in respect of an Acquisition Proposal, in respect of which no Notice has
been given in accordance herewith.

          (e)  Superior Proposal Defined. For purposes of this Section 9.1,
               -------------------------
"Superior Proposal" means any proposal which the Company's Board of Directors in
its good faith reasonable judgment determines (in consultation with its
advisors) would, if consummated, be more favorable to the Company or its
stockholders than any other proposal. In determining whether a proposal is a
Superior Proposal, the Company shall be free to take into account, among other
factors, the purchase price, form of consideration, structure, timing, risk of
non-consummation, impact on the business of the Company, other obligations and
other relevant legal and financial considerations.

          (f)  Termination of Right. Purchaser's Right of First Negotiation
               --------------------
pursuant to this Section 9.1 shall terminate upon the earlier to occur of (i)
the time at which no amounts remain outstanding under the Note; or (ii) the time
at which the Purchaser Group owns less than twenty-five percent (25%) of the
Common Stock issued or issuable upon conversion and exercise of the Securities;
provided, however, that in no case shall Purchaser's Right of First Negotiation
--------  -------
terminate prior to the third anniversary of the Closing.

                                                                            -26-
<PAGE>

     9.2  Board of Directors Observer Rights.
          ----------------------------------

          (a)  Observer Rights. After the Closing, for so long as either (i) any
               ---------------
amount shall remain outstanding under the Note or (ii) the Purchaser Group
continues to own at least twenty-five percent (25%) of the Common Stock issued
or issuable upon conversion and exercise of the Securities, two designees of
Purchaser satisfactory to the Company in its reasonable and good faith
discretion (the "Observers") shall be entitled to attend (in person or by
                 ---------
telephone) all meetings of the Board of Directors in a non-voting observer
capacity and, in this respect, the Company shall give such Observers copies of
all notices, minutes, consents and other Board of Directors' materials that it
provides to all of its directors no later than the time it provides such
information to its directors (collectively, the "Observer Rights"); provided,
                                                 ---------------    --------
however, that the Company shall have the right to withhold any information and
-------
to exclude the Observers from any meeting, or any portion thereof, as is
reasonably determined in good faith by a majority of the Board of Directors to
be necessary for any reasonable purposes, including but not limited to, purposes
of confidentiality, competitive factors or if access to such information or the
Observers' attendance at such meeting or portion thereof could adversely affect
the attorney-client privilege between the Company and its counsel. The Company
shall indemnify the Observers to the same extent that it indemnifies its
directors and officers.

          (b)  Confidentiality. Purchaser agrees, and Purchaser will cause any
               ---------------
Observer to agree, to hold in confidence and trust, and to act in a fiduciary
manner with respect to all information so provided or otherwise learned in
connection with its Observer Rights, and not use or disclose any information
provided to or learned by it in connection with its Observer Rights, other than
for purposes reasonably related to its investment in the Company. The provisions
of this Section 9.2(b) will survive any disposition of all or any portion of the
Securities and/or the Common Stock issued or issuable upon conversion or
exercise thereof.

          (c)  Specific Enforcement. It is agreed and understood that monetary
               --------------------
damages would not adequately compensate the Company for any breach of Section
9.2(b) hereof, that this Agreement shall be specifically enforceable, and that
any breach or threatened breach of Section 9.2(b) shall be the proper subject of
a temporary or permanent injunction or restraining order. Further, Purchaser,
for itself and on behalf of each Observer, waives any claim or defense that
there is an adequate remedy at law for such breach or threatened breach.

                                   ARTICLE X

                          INDEMNIFICATION; TERMINATION
                          ----------------------------

     10.1 Indemnification by the Company. The Company agrees to indemnify and
          ------------------------------
hold harmless Purchaser and its Affiliates and their respective officers,
directors, agents, employees, Subsidiaries, partners and controlling Persons
(each, a "Company Indemnified Party") from and against any and all liabilities,
          -------------------------
claims, losses, damages, judgments, and settlements resulting from a third-party
claim (including interest and penalties recovered by a third party with respect
thereto and reasonable attorneys' fees and other expenses and reasonable fees
and expenses incurred in the investigation or defense of any of same or in
asserting, processing or enforcing any of the rights of Purchaser arising under
this Article X) (collectively, "Company Liabilities"), to which any Company
                                -------------------
Indemnified Party

                                                                            -27-
<PAGE>

may become subject, insofar as such Company Liabilities arise from or relate to,
directly or indirectly, (i) a breach of a representation or warranty of the
Company contained in this Agreement, (ii) any failure by the Company to perform
or comply with any covenant contained in this Agreement, or (iii) this Agreement
or any other Transaction Document, or any of the transactions contemplated
thereby or from any investigation, litigation, or other proceeding relating to
any of the foregoing, except to the extent incurred by reason of the gross
negligence or willful misconduct of a Company Indemnified Party. The Company
also agrees to indemnify and hold harmless the Company Indemnified Parties from
any Company Liabilities to which the Company may become subject, insofar as such
Company Liabilities arise from or relate to, directly or indirectly, a breach of
any representation or warranty set forth in Section 5.25 herein.

     10.2  Notification and Advancement of Expenses. A Company Indemnified Party
           ----------------------------------------
will, promptly after the receipt of notice of the commencement of any action,
investigation, claim or other proceeding against such Company Indemnified Party
in respect of which indemnity may be sought hereunder notify the Company in
writing of the commencement thereof. The omission of any Company Indemnified
Party so to notify the Company of any such action shall not relieve the Company
from any liability which it may have to such Company Indemnified Party hereunder
unless, and only to the extent that, such omission results in the Company's
forfeiture of substantive rights or defenses or the Company is otherwise
irrevocably prejudiced in defending such proceeding. In case any such action,
claim or other proceeding shall be brought against any Company Indemnified Party
and it shall notify the Company of the commencement thereof, the Company shall
be entitled to assume the defense thereof at its own expense, with counsel
reasonably satisfactory to the Company Indemnified Party; provided that any
                                                          --------
Company Indemnified Party may, at its own expense, retain separate counsel to
participate in such defense. Notwithstanding the foregoing, if (a) the Company
has failed to assume the defense and employ counsel as provided herein, (b) the
Company has agreed in writing to pay such fees and expenses of separate counsel
for the Company Indemnified Party or (c) in the reasonable opinion of counsel to
such Company Indemnified Party, a conflict or likely conflict exists between the
Company, on the one hand, and such Company Indemnified Party, on the other hand,
that would make such separate representation advisable, such Company Indemnified
Party shall have the right to control its own defense of such action, claim or
proceeding and employ separate counsel at the Company's expense in any action,
claim or proceeding in which both the Company, on the one hand, and a Company
Indemnified Party, on the other hand, is, or is reasonably likely to become, a
party; provided, however, that the Company shall not in any event be required to
       --------  -------
pay the fees and expenses of more than one separate counsel. In the event that
the Company Indemnified Party controls its own defense and employs separate
counsel as provided herein, the Company shall advance such Company Indemnified
Party at the beginning of every sixty (60) day period (the "Advancement
                                                            -----------
Period"), commencing on the date the Company Indemnified Party delivers notice
------
to the Company of its intent to control its own defense, the maximum estimated
amount of the costs and expenses of such defense for such Advancement Period as
determined in good faith by the Company Indemnified Party (the "Advanced
                                                                --------
Expenses"). If the actual amount of the costs and expenses of such defense at
--------
the end of such Advancement Period (the "Actual Expenses") are greater than the
                                         ---------------
Advanced Expenses, the Company shall pay promptly the amount of the difference
to the Company Indemnified Party.  If the Actual Expenses are less than the
Advanced Expenses, the Company Indemnified Party may retain the amount of such
difference and apply it to the Advanced Expenses for the next Advancement
Period, if any; provided, however, that the Company Indemnified Party shall
                --------  -------
return to the Company the aggregate amount of such difference at the conclusion
and resolution of any pending or threatened claim, action or proceeding of which
the Company Indemnified Party has assumed

                                                                            -28-
<PAGE>

the defense as contemplated hereby, and after the Company has otherwise
satisfied its indemnification obligations hereunder. The Company agrees that it
will not, without the prior written consent of a Company Indemnified Party,
settle, compromise or consent to the entry of any judgment in any pending or
threatened claim, action or proceeding relating to the matters contemplated
hereby (if such Company Indemnified Party is a party thereto or has been
actually threatened to be made a party thereto) unless such settlement,
compromise or consent includes an unconditional release of such Company
Indemnified Party from all liability arising or that may arise out of such
claim, action or proceeding. The Company shall not be liable for any settlement
of any claim, action or proceeding effected against a Company Indemnified Party
without the prior written consent of the Company.

     10.3  Limitation of Liability. UNDER NO CIRCUMSTANCES SHALL THE COMPANY (OR
           -----------------------
ANY AFFILIATE THEREOF) BE LIABLE TO INDEMNIFY PURCHASER FOR ANY INCIDENTAL,
PUNITIVE, INDIRECT, SPECIAL, EXEMPLARY OR CONSEQUENTIAL DAMAGES OF PURCHASER,
BUT PURCHASER MAY RECOVER INCIDENTAL, PUNITIVE, INDIRECT, SPECIAL, EXEMPLARY OR
CONSEQUENTIAL DAMAGES PAID TO A THIRD PARTY FOR WHICH THE COMPANY IS OBLIGATED
TO INDEMNIFY PURCHASER, INCLUDING, BUT NOT LIMITED TO, THOSE RESULTING FROM LOSS
OF TIME, LOSS OF SAVINGS, LOSS OF DATA, LOSS OF PROFITS OR LOSS OF GOODWILL,
WHETHER FORESEEABLE OR UNFORESEEABLE; PROVIDED, HOWEVER, THAT THIS SECTION 10.3
                                      --------  -------
SHALL NOT LIMIT IN ANY MANNER WHATSOVER THE COMPANY'S INDEMNIFICATION
OBLIGATIONS UNDER SECTION 10.1 HEREIN.

     10.4  Termination Events.  Without prejudice to other remedies which may be
           ------------------
available to the parties by law or this Agreement, this Agreement may be
terminated and the transactions contemplated hereby may be abandoned at any time
prior to the Closing:

           (a)  by mutual written consent of the Company and Purchaser;

           (b)  by either the Company or Purchaser by giving written notice to
the other party if the Closing shall not have occurred prior to January 31,
2002, unless extended by written agreement of the parties; provided that the
                                                           --------
party seeking termination pursuant to this subsection (b) is not in material
default or breach hereunder and provided, further, that the right to terminate
                                --------  -------
this Agreement under this subsection (b) shall not be available to any party
whose failure to fulfill any obligation under this Agreement has been the cause
of, or resulted in, the failure of the Closing to occur on or before such date;

           (c)  by Purchaser if the conditions to the Closing set forth in
Article III herein are not satisfied prior to January 18, 2002; or

           (d)  by either the Company or Purchaser by giving written notice to
the other party if any Governmental Authority shall have issued an injunction or
other ruling prohibiting the consummation of any of the transactions
contemplated by this Agreement or any other Transaction Document and such
injunction or other ruling shall not be subject to appeal or shall have become
final and unappealable.

                                                                            -29-
<PAGE>

           If this Agreement is terminated pursuant to and as provided by this
Section 10.4, such termination shall be without liability of any party hereto
(or their respective Affiliates) to any other party hereto.

                                  ARTICLE XI

                                 MISCELLANEOUS
                                 -------------
     11.1  Communications.  All notices, requests, claims, demands and other
           --------------
communications ("Communications") provided for or permitted hereunder shall be
                 --------------
made in writing and shall be by registered or certified first class mail, return
receipt requested, telecopier, recognized overnight courier service or personal
delivery:

           (a)  if to the Company:

                    Artesyn Technologies, Inc.
                    7900 Glades Rd., Suite 500
                    Boca Raton, FL 33434
                    Attention: Chief Financial Officer
                    Telephone:  (561) 451-1000
                    Telecopier: (561) 451-1020

           with a required copy to:

                    Kirkpatrick & Lockhart LLP
                    1251 Avenue of the Americas
                    New York, NY 10020
                    Attention: John D. Vaughan, Esq.
                    Telephone:  (212) 536-3900
                    Telecopier: (212) 536-3901

           (b)  if to Purchaser:

                    Finestar International Limited
                    c/o ABN Amro Management Services (Hong Kong) Limited
                    18/F Lincoln House, Taikoo Place
                    979 King's Road
                    Quarry Bay, Hong Kong
                    Attention: May Luk
                    Telephone:  011-852-2700-6618
                    Telecopier: 011-852-2868-5078

           with a required copy to:

                    Delta Electronics, Inc.
                    186 Ruey Kuang Road, Neihu

                                                                            -30-
<PAGE>

               Taipei 114, Taiwan, R.O.C.
               Attention:  Yancey Hai, Vice President, Global Strategic Planning
                           Lanford Liu, Director, Corporate Development
               Telephone:  011-886-287-972-088
               Telecopier: 011-886-287-972-434

           and:

               Wilson Sonsini Goodrich & Rosati
               Professional Corporation
               650 Page Mill Road
               Palo Alto, CA 94304
               Attention:  Aaron J. Alter, Esq.
                           Adam R. Dolinko, Esq.
               Telephone:  (650) 493-9300
               Telecopier: (650) 493-6811

     All Communications shall be deemed to have been duly given:  when delivered
by hand, if personally delivered; when delivered by courier, if delivered by
commercial overnight courier service; five (5) Business Days after being
deposited in the mail, postage prepaid, if mailed; and when receipt is
acknowledged by the individual to whom the telecopy is sent, if telecopied.

     11.2  Successors and Assigns. This Agreement shall inure to the benefit of
           ----------------------
and be binding upon the successors and permitted assigns of the parties hereto.
Purchaser may not assign any of its rights under this Agreement without the
prior written consent of the Company other than to a member of the Purchaser
Group who shall have agreed in writing to be bound by the terms hereof as though
a signatory hereto, for which no consent of the Company shall be required. The
Company may not assign any of its rights under this Agreement without the prior
written consent of Purchaser.

     11.3  Determinations, Requests or Consents. Any amendment, supplement or
           ------------------------------------
modification of or to any provision of this Agreement, any waiver of any
provision of this Agreement, and any consent to any departure of the Company
from the terms of any provision of this Agreement, shall be effective (a) only
if it is made or given in writing and signed by the Company and Purchaser and
(b) only in the specific instance and for the specific purpose for which made or
given.

     11.4  Counterparts. This Agreement may be executed in any number of
           ------------
counterparts each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement.

     11.5  Headings. The headings in this Agreement are for convenience of
           --------
reference only and shall not limit or otherwise affect the meaning hereof.

     11.6  Governing Law. This Agreement shall be governed by the internal laws
           -------------
of the State of New York applicable to contracts entered into and to be
performed within such state without regard to conflicts of laws principles.

                                                                            -31-
<PAGE>

     11.7  Severability. If any one or more of the provisions contained herein,
           ------------
or the application thereof in any circumstance, is held invalid, illegal or
unenforceable in any respect for any reason, the validity, legality and
enforceability of any such provision in every other respect and of the remaining
provisions hereof shall not be in any way impaired, unless the provisions held
invalid, illegal or unenforceable shall substantially impair the benefits of the
remaining provisions hereof.

     11.8  Entire Agreement; Third Party Beneficiaries. This Agreement, together
           -------------------------------------------
with the exhibits and schedules hereto and the other Transaction Documents, is
intended by the parties as a final expression of their agreement and intended to
be a complete and exclusive statement of the agreement and understanding of the
parties hereto in respect of the subject matter contained herein and therein.
There are no restrictions, promises, warranties or undertakings, other than
those set forth or referred to herein or therein. This Agreement, together with
the exhibits hereto, and the other Transaction Documents supersede all prior
contemporaneous agreements and understandings between the parties with respect
to such subject matter. This Agreement, together with the exhibits and schedules
hereto and the other Transaction Documents, is intended by the parties to confer
rights and remedies hereunder to members of the Purchaser Group (other than
Purchaser) as third party beneficiaries.

     11.9  Certain Expenses. The Company agrees to pay and reimburse Purchaser
           ----------------
at Closing for one-half of all attorneys' and accountants' fees and expenses
incurred by Purchaser in connection with the preparation and negotiation of this
Agreement and the consummation of the transactions contemplated hereby;
provided, however, that such reimbursement of attorneys' and accountants' fees
and expenses shall not exceed $450,000. The Company hereby authorizes Purchaser
to withhold up to $450,000 in such expenses from payment of the Purchase Price
at Closing. In addition, the Company agrees to pay and reimburse Purchaser for
all antitrust filing fees and related expenses incurred by Purchaser in
connection with the consummation of the transactions contemplated hereby,
including the issuance of Common Stock upon conversion of the Note or exercise
of the Warrant.

     11.10 Publicity. Except as in the opinion of counsel and as may be
           ---------
required by applicable law or regulation, none of the parties hereto shall issue
a publicity release or announcement or otherwise make any public disclosure
concerning this Agreement or the transactions contemplated hereby, without prior
approval by the other party hereto (which approval will not be unreasonably
withheld). If any announcement is required by law or regulation to be made by
any party hereto, such announcement shall be in form, manner and substance
mutually acceptable to the parties hereto.

     11.11 Further Assurances. Each of the parties shall execute such documents
           ------------------
and perform such further acts (including, without limitation, obtaining any
consents, exemptions, authorizations, or other actions by, or giving any notices
to, or making any filings with, any Governmental Authority or any other Person)
as may be reasonably required or desirable to carry out or to perform the
provisions of this Agreement.

     11.12 Consent to Jurisdiction. Any legal action, suit or proceeding in
           -----------------------
equity or at law arising out of or relating to this Agreement, the Transaction
Documents and/or the transactions contemplated hereby and thereby shall be
instituted in the state or federal courts located in the county of New York,
State of New York and each party agrees not to assert, by way of motion, as a
defense, or otherwise, in any such action, suit or proceeding, any claim that
such party is not subject personally to the jurisdiction of any such court, that
the action, suit or proceeding is brought in an inconvenient forum, that the
venue

                                                                            -32-
<PAGE>

of the action, suit or proceeding is improper, or that this Agreement or the
subject matter hereof may not be enforced in or by any such court. Each party
further irrevocably submits to the jurisdiction of any such court in any such
action, suit or proceeding. Any and all service of process and any other notice
in any such action, suit or proceeding shall be effective against any party if
given personally or by registered or certified mail, return receipt requested,
or by any other means of mail that requires a signed receipt, postage prepaid,
mailed to such party as herein provided. Nothing herein contained shall be
deemed to affect or limit the right of any party to serve process in any other
manner permitted by applicable law. Neither party shall seek a jury trial in any
such action, suit or proceeding or seek to consolidate any such action, suit or
proceeding with any other action, suit or proceeding in which trial by jury has
not been waived.

     11.13  Agent for Service of Process.
            ----------------------------

            (a)  Purchaser irrevocably appoints Wilson Sonsini Goodrich & Rosati
at its office from time to time (currently 245 Park Avenue, 24th Floor, New
York, NY 10167) to be its agent for the service of process. Purchaser agrees
that any legal process may be effectively served on it in connection with legal
proceedings by service on its agent.

            (b)  The Company irrevocably appoints Kirkpatrick & Lockhart LLP at
its office from time to time (currently 1251 Avenue of the Americas, 45th Floor,
New York, New York 10020) to be its agent for the service of process. The
Company agrees that any legal process may be effectively served on it in
connection with legal proceedings by service on its agent.

            (c)  If the agent at any time ceases for any reason to act as such
for the relevant party, such party shall appoint a replacement agent having an
address for service and shall notify the other party of the name and address of
the replacement agent. The provisions of this clause applying to service on an
agent apply equally to service on a replacement agent. A copy of any document
served on an agent shall be copied to all parties to this Agreement. Failure or
delay in so doing shall not prejudice the effectiveness of service of the legal
process.

                          [Signature Pages To Follow]

                                                                            -33-
<PAGE>

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

                                    ARTESYN TECHNOLOGIES, INC.

                                    By: /s/ Richard J. Thompson
                                       ----------------------------------------
                                    Name: Richard J. Thompson
                                    Title: Vice President and Chief
                                           Financial Officer

                                    FINESTAR INTERNATIONAL LIMITED

                                    By: /s/ Bruce Cheng
                                       ----------------------------------------
                                    Name: Bruce Cheng
                                    Title: Director

The undersigned hereby represents and warrants to the Company that it has the
corporate power and authority and has been duly authorized by all requisite
corporate action to execute this acknowledgement and agreement to be bound by
the provisions of Article VIII and Sections 11.12 and 11.13 herein.  The
undersigned further acknowledges and agrees that the provisions of Article VIII
and Sections 11.12 and 11.13 herein constitute legal, valid and binding
obligations enforceable against the undersigned as if the Purchaser named
therein.

ACKNOWLEDGED AND AGREED:

DELTA ELECTRONICS, INC.

By: /s/ Bruce Cheng
   -------------------------------
Name: Bruce Cheng
Title: Chairman and CEO

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