Document:

Exhibit 10.2

SHAREHOLDER
SUPPORT AGREEMENT

THIS AGREEMENT is made as of the 26th day of
September, 2006.

BETWEEN:

THE PERSONS NAMED ON
SCHEDULE 4.1(B) HERETO,

(each such person a “Shareholder” and collectively, the “Shareholders”)

AND:

Millennium Pharmaceuticals, Inc., a corporation existing under the laws
of the State of Delaware

(the “Offeror”)

WHEREAS:

A.                                   The
Shareholders are the registered and the beneficial owners of and/or control the
disposition of shares in the capital of AnorMED Inc. (the “Company”),
as more particularly described herein;

B.                                     The
Shareholders understand that the Offeror and the Company are, concurrently with
the execution and delivery of this Agreement, executing and delivering the
Support Agreement providing for the Offer;

C.                                     This
Agreement sets out the terms and conditions of the several agreement of each of
the Shareholders (i) to tender its Shares or cause the same to be tendered to
the Offer and (ii) to abide by the other restrictions and covenants set forth
herein; and

D.                                    Each
of the Shareholders acknowledges that (i) the Offeror would not enter into the
Support Agreement but for the execution and delivery of this Agreement by the
Shareholders, (ii) it is a condition of the Offeror’s obligation under the
Support Agreement to make the Offer that the Shareholders enter into this
Agreement with the Offeror, and (iii) in entering into this Agreement, each of
the Shareholders acknowledge that it is not and should not be considered to be
acting jointly and in concert with the Offeror in making the Offer.

NOW THEREFORE this Agreement witnesses that, in
consideration of the premises and the covenants and agreements herein
contained, the parties hereto agree as follows:

ARTICLE 1

INTERPRETATION

1.1                               Definitions

In this Agreement:

(a)                                  “affiliate” has the meaning assigned to such term under the Securities Act (British Columbia);

(b)                                 “Shareholder’s Shares” means, in respect of a Shareholder,
(i) all Shares beneficially owned by such Shareholder, or over which such
Shareholder exercises control or direction, on the date hereof and (ii) any
Shares that become beneficially owned by such Shareholder, or over which such
Shareholder acquires control or direction, after the date hereof; and

(c)                                  “Support Agreement” means the support agreement dated the date
hereof between the Offeror and the Company, a true copy of which has been
delivered to the Shareholder simultaneously with this Agreement being entered
into.

1.2                               Definitions
in Support Agreement

All terms used in this
Agreement that are not defined in Section 1.1 or elsewhere herein and that are
defined in the Support Agreement shall have the respective meanings ascribed to
them in the Support Agreement.

1.3                               Schedules

The following Schedule
attached hereto constitutes an integral part of this Agreement:

Schedule 4.1(b) —
Shareholders and Ownership of Shares

ARTICLE 2

COVENANTS OF THE OFFEROR

2.1                               Offeror
to Make Offer

The Offeror agrees
with each Shareholder that it shall comply with the terms of the Support
Agreement and, without limiting the generality of the foregoing, the Offeror
shall make or cause to be made the Offer for US$12.00 per Share having the
terms and conditions thereto set forth in the Support Agreement and as required
by the provisions of the Support Agreement. 
In the event that another entity affiliated with the Offeror makes the
Offer in accordance with the terms and conditions of the Support Agreement, the
Offeror shall cause such other entity to become a party to this Agreement, upon
which such other entity shall become entitled to exercise all of the rights of
the Offeror and subject to all of the obligations of the Offeror under this
Agreement but the Offeror shall continue to be jointly and severally liable for
all such obligations.

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2.2                               Changes
to Offer

The Offeror shall
not, without the prior written consent of each Shareholder, amend the Support
Agreement or the Offer to:  (i) vary or waive the Minimum Condition;
(ii) decrease the consideration per Share; (iii) change the form of
consideration payable under the Offer (other than to add additional
consideration, whether in the form of cash or securities of the Parent or
otherwise); (iv) decrease the number of Shares in respect of which the Offer is
made; (v) impose additional conditions to the Offer; (vi) otherwise vary the
Offer (or any terms or conditions thereof) in a manner which is adverse to the
Shareholder; or (vii) extend the period of time for mailing the Offer , except
as contemplated in section 2.1(c) of the Support Agreement.

ARTICLE 3

COVENANTS OF THE SHAREHOLDER

3.1                               General

Each Shareholder
hereby covenants and irrevocably agrees, on a several basis, in favour of the
Offeror that, from the date hereof until the earlier of the termination of this
Agreement in accordance with Article 5, except as permitted by this Agreement,
such Shareholder shall:

(a)                                  not,
and shall cause its general partners and their respective directors, officers,
employees, financial advisors, counsel, agents, trustees, partners or other
representatives not to, directly or indirectly, (i) solicit, initiate or
encourage any Alternative Transaction
(ii) participate in any discussions or negotiations with any Person (other
than the Offeror and its Subsidiaries and their respective directors, officers,
employees, agents, financial advisors, counsel or other representatives) in
respect of any Alternative Transaction (other than to refer such Persons to the
provisions of this Agreement and the Support Agreement), (iii) provide any
confidential information relating to the Company or its Subsidiaries to any Person
in connection with any Alternative Transaction or
(iv) otherwise cooperate in any way with any effort or attempt by any
other person to do or seek to do any of the foregoing, provided, however, that
nothing contained in this section or the other provisions of this agreement
shall prevent such Shareholder or a nominee or representative of such
Shareholder, if a director of the Company, from taking any actions solely in
his or her capacity as a member of the Board of Directors in respect of an
unsolicited bona fide Alternative Transaction under
the terms and conditions set out in the Support Agreement;

(b)                                 immediately
cease and cause to be terminated all existing discussions and negotiations, if
any, with any third party or any agent or representative of any third party
conducted before the date of this Agreement with respect to any Alternative
Transaction and request the return or destruction of all confidential written
information provided in connection therewith;

(c)                                  not
release any third party from any confidentiality or standstill agreement in
respect of the Company that it is party to;

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(d)                                 promptly
notify the Offeror of any Alternative Transaction, any bona fide
inquiry, proposal, discussions or negotiation with respect to any Alternative
Transaction of which such Shareholder or any of its directors, officers,
employees, representatives, agents, trustees or partners becomes aware (and of
which the Company or any of its directors, officers, employees, representatives
or agents is not aware), except to the extent that the Shareholder has been
advised by its legal counsel that to do so would cause a breach of its
fiduciary duties to the Company or any of its Subsidiaries; such notice will
include, to the extent known to such Shareholder, the material terms and
conditions of such Alternative Transaction, inquiry, proposal, discussion or
negotiation.  Such notice to the Offeror
shall be made forthwith orally and in writing and shall indicate, to the extent
known to such Shareholder, such details of the proposal, inquiry or contact as
the Offeror may reasonably request, including the identity of the Person making
such proposal, inquiry or contact and the terms and conditions of such
Alternative Transaction, inquiry, proposal, discussion or negotiation;

(e)                                  not
option, sell, transfer, pledge, encumber, grant a security interest in,
hypothecate or otherwise convey any of the Shareholder’s Shares (or any right
or interest therein (legal or equitable)), to any Person or group or agree to
do any of the foregoing;

(f)                                    not
grant or agree to grant any proxy, power of attorney or other right to vote the
Shareholder’s Shares, or enter into any voting agreement, voting trust, vote
pooling or other agreement with respect to the right to vote, call meetings of
shareholders or give consents or approval of any kind with respect to any of
the Shareholder’s Shares;

(g)                                 not
vote or cause to be voted any of the Shareholder’s Shares in respect of any
proposed action by the Company or its shareholders or affiliates or any other
Person in a manner which would reasonably be regarded as likely to prevent or
delay the successful completion of the Offer;

(h)                                 not
do indirectly that which it may not do directly in respect of the restrictions
on its rights with respect to the Shareholder’s Shares pursuant to this
Section 3.1; and

(i)                                     upon
the Offeror taking up and paying for the Shares tendered by the Shareholder and
acquiring Shares representing at least a majority of the then outstanding
Shares, upon the written request of the Offeror, the Shareholder will or will
cause any nominee or representative of the Shareholder who acts as a director
of the Company or any of its Subsidiaries to resign in an orderly manner and to
assist with the appointment of such person or persons identified by the Offeror
as a substitute director of the Company.

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3.2          Deposit of the Shareholder’s Shares under the Offer

Each Shareholder
hereby agrees with the Offeror that it will, as soon as practicable and in any
event on or before the fifteenth Business Day following the making of the
Offer, cause all of its Shareholder’s Shares to be validly tendered in
acceptance of the Offer together with the letter of transmittal or, if
applicable, notice of guaranteed delivery, and any other documents required in
accordance with the Offer, and will not withdraw its Shareholder’s Shares from
the Offer except as expressly otherwise permitted under this Agreement.

3.3                               Co-operation/Substitute
Transaction

If the Offeror
concludes after the date of this Agreement that it is necessary or desirable to
proceed with a form of transaction other than the Offer (including, without
limitation, a plan of arrangement or amalgamation) whereby the Offeror and/or
its affiliates would effectively acquire all the Shares on economic and other
terms and conditions (including, without limitation, tax treatment) having
consequences to each Shareholder that are no less favourable than those
contemplated by this Agreement, as determined by such Shareholder, acting
reasonably (any such transaction is referred to as a “Substitute
Transaction”), each Shareholder agrees to support the completion of
the Substitute Transaction in the same manner as the Offer, including by voting
its Shareholder’s Shares in favour of the Substitute Transaction.

ARTICLE 4

REPRESENTATIONS AND WARRANTIES

4.1                               Representations
and Warranties of the Shareholder

Each Shareholder
hereby represents and warrants to and covenants with the Offeror, on a several
basis, as follows, and acknowledges that the Offeror is relying upon such
representations, warranties and covenants in entering into this Agreement:

(a)                                  Incorporation
and Authorization.  Such Shareholder
has all necessary power, authority, capacity and right to enter into this
Agreement and to carry out each of its obligations under this Agreement.  This Agreement has been duly executed and
delivered by such Shareholder and constitutes a legal, valid and binding
obligation of such Shareholder enforceable against it in accordance with its
terms, subject to bankruptcy and insolvency and other laws affecting the
enforcement of creditors’ rights generally and subject to the qualification
that equitable remedies may only be granted in the discretion of a court of
competent jurisdiction.

(b)                                 Ownership
of Shares and Other Securities.  Such
Shareholder is, and will be immediately prior to the Effective Date, the sole
registered and beneficial owner of its Shareholder’s Shares shown opposite its
name as being beneficially owned in Schedule 4.1(b), with good and marketable
title thereto, free and clear of all Encumbrances, and has full legal right,
power and authority to enter into this Agreement, to deposit, or to cause the
deposit of, its Shareholder’s Shares under the Offer and to sell, or to cause
the sale of, its Shareholder’s Shares to the Offeror pursuant to the Offer;
upon take-up of and payment for its Shareholder’s Shares, such Shareholder will
have conveyed to the Offeror good and marketable title to its

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beneficially owned Shareholder’s Shares, free and clear of any
Encumbrances (excluding any Encumbrances that have been granted by or that may
be claimed in respect of the Offeror).

(c)                                  No
Conflicts.  None of the execution and
delivery of this Agreement by such Shareholder, the consummation by such
Shareholder of the transactions contemplated hereby nor compliance by such
Shareholder with any of the provisions hereof will violate, conflict with, or
result in a breach of any provision of, require any consent, approval or notice
under, or constitute a default (or an event which, with notice or lapse of time
or both, would constitute a default) or result in a right of termination or
acceleration under, any of the terms, conditions or provisions of: (i) the
certificate of incorporation, certificate of limited partnership, Articles or
by-laws or other constating documents of such Shareholder; or (ii) any material
Contract to which such Shareholder is a party; or (iii) violate any judgment,
ruling, order, writ, injunction, award, decree, statute, ordinance, rule or
regulation applicable to such Shareholder.

(d)                                 No
Agreements.  No Person has any
agreement or option, or any right or privilege (whether by law, pre-emptive or
contractual) capable of becoming an agreement or option, for the purchase,
acquisition or transfer of any of its Shareholder’s Shares, or any interest
therein or right thereto, except pursuant to this Agreement.

(e)                                  Voting.  None of its Shareholder’s Shares is subject
to any proxy, power of attorney, voting agreement, voting trust, vote pooling
or other agreement with respect to the right to vote, call meetings of
shareholders or give consents or approvals of any kind.

(f)                                    Consents.  No consent, waiver, approval, authorization,
exemption, registration, licence or declaration of or by, or filing with, or
notification to any Government Authority which has not been made or obtained is
required to be made or obtained by such Shareholder in connection with (i) the
execution and delivery by such Shareholder of this Agreement or the performance
of its obligations hereunder, or (ii) the consummation of any transactions by
such Shareholder provided for herein, except for, in either case, the filing of
reports under applicable securities legislation.

(g)                                 Legal
Proceedings.  There are no legal
proceedings in progress or pending before any Government Authority or
threatened against such Shareholder or any of its affiliates that would
adversely affect in any manner the ability of such Shareholder to enter into
this Agreement and to perform its obligations hereunder or the title of such
Shareholder to any of its beneficially owned Shareholder’s Shares and there is
no judgment, decree or order against such Shareholder that would adversely
affect in any manner the ability of such Shareholder to enter into this
Agreement and to perform its obligations hereunder or the title of such
Shareholder to any of its beneficially owned Shareholder’s Shares.

(h)                                 Agreements
with Company.  Except as disclosed in
the Company Reports or as previously disclosed in writing to the Offeror, such
Shareholder is not a party to any Contract with the Company or any of its
Subsidiaries.

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(i)                                     Claims.  Except as disclosed in the Company Reports or
as previously disclosed in writing to the Offeror, such Shareholder has no
Claims against the Company or any of its Subsidiaries as of the date hereof and
will not have any Claims against the Company or any of its Subsidiaries by
reason of entering into this Agreement.

The representations and warranties of each Shareholder
set forth in this Section 4.1 shall survive the completion of the purchase by
the Offeror of its Shareholder’s Shares and despite such completion, shall
continue in full force and effect for the benefit of the Offeror.

4.2                               Representations
and Warranties of the Offeror

The Offeror hereby
represents and warrants to each Shareholder each of the representations and
warranties of the Offeror contained in the Support Agreement, which are
incorporated herein by reference, and that:

(a)                                  Incorporation.  The Offeror is a corporation duly
incorporated and is validly existing as a corporation in good standing under
the laws of the State of Delaware.

(b)                                 Power
and Authority.  The Offeror has the
requisite corporate power and authority to enter into this Agreement and to
carry out its obligations hereunder. 
This Agreement has been duly executed and delivered by the Offeror and
constitutes the legal, valid and binding obligation of the Offeror enforceable
against it in accordance with its terms, subject to bankruptcy and insolvency
and other laws affecting the enforcement of creditors’ rights generally and
subject to the qualification that equitable remedies may only be granted in the
discretion of a court of competent jurisdiction.

(c)                                  No
Conflicts.  None of the execution and
delivery of this Agreement by the Offeror, the consummation by the Offeror of
the transactions contemplated hereby nor compliance by the Offeror with any of
the provisions hereof will violate, conflict with, or result in a breach of any
provision of, require any consent, approval or notice under, or constitute a
default (or an event which, with notice or lapse of time or both, would
constitute a default) or result in a right of termination or acceleration
under, any of the terms, conditions or provisions of: (i) the certificate of
incorporation or by-laws of the Offeror; or (ii) any material Contract to which
the Offeror or any of its Subsidiaries is a party; or (iii) subject to
compliance with applicable Laws as provided in the Support Agreement, violate
any judgment, ruling, order, writ, injunction, award, decree, statute, ordinance,
rule or regulation applicable to the Offeror or any of its Subsidiaries.

(d)                                 Consents.  No consent, waiver, approval, authorization,
exemption, registration, licence or declaration of or by, or filing with, or
notification to any Government Authority which has not been made or obtained is
required to be made or obtained by the Offeror in connection with (i) the
execution and delivery by the Offeror of this Agreement or the performance of
its obligations hereunder, or (ii) the consummation of any transactions by
the Offeror provided for herein, except as provided in the Support Agreement.

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(e)                                  Legal
Proceedings.  There are no legal
proceedings in progress or pending before any Government Authority or
threatened against the Offeror or any of its affiliates that would adversely
affect in any manner the ability of the Offeror to enter into this Agreement
and to perform its obligations hereunder and there is no judgment, decree or
order against the Offeror that would adversely affect in any manner the ability
of the Offeror to enter into this Agreement and to perform its obligations
hereunder.

The
representations and warranties of the Offeror set forth in this
Section 4.2 shall survive the completion of the purchase by the Offeror of
the Shareholder’s Shares of each Shareholder and despite such completion, shall
continue in full force and effect for the benefit of each Shareholder.

ARTICLE 5

TERMINATION

5.1                               Termination
by the Offeror

The Offeror, when
not in default in the performance of its material obligations under this
Agreement or the Support Agreement, may, without prejudice to any of its rights
hereunder and in its sole discretion, terminate this Agreement (in respect of a
Shareholder) by written notice to such Shareholder if:

(a)                                  any
of the representations and warranties of such Shareholder under this Agreement
shall not be true and correct in all material respects;

(b)                                 such
Shareholder shall not have complied with its material covenants to the Offeror
contained in this Agreement;

(c)                                  the
Offeror shall not be required to make the Offer under the terms and conditions
of the Support Agreement;

(d)                                 any
condition to completion of the Offer, as set out in Schedule 2.1(a) to the
Support Agreement, is not satisfied or waived prior to the Expiry Date; or

(e)                                  the
Support Agreement has been terminated in accordance with its terms.

5.2                               Termination
by the Shareholder

Each Shareholder,
when not in material default in the performance of its obligations under this
Agreement, may, without prejudice to any of its rights hereunder and in its
sole discretion, terminate this Agreement by written notice to the Offeror if:

(a)                                  any
of the representations and warranties of the Offeror under this Agreement shall
not be true and correct in all material respects;

(b)                                 the
Offeror shall not have complied with its material covenants to such Shareholder
contained herein;

(c)                                  the
terms of the Offer do not conform with the provisions of the Support Agreement;

 8
 

(d)                                 the
Take-up Date has not occurred within 120 days of the Latest Mailing Time;
provided, however, that if the Offeror’s take-up and payment for Shares
deposited under the Offer is delayed by (i) an injunction or order made by a
court or regulatory authority of competent jurisdiction, or (ii) the Offeror
not having obtained any regulatory waiver, consent or approval which is
necessary to permit the Offeror to take up and pay for Shares deposited under
the Offer, then, provided that such injunction or order is being contested or
appealed or such regulatory waiver, consent or approval is being actively
sought, as applicable, this Agreement shall not be terminated by such
Shareholder pursuant to this Section 5.2(d) until the earlier of (a) 180 days
after the Offer is commenced and (B) the tenth Business Day following the date
on which such injunction or order ceases to be in effect or such waiver,
consent or approval is obtained, as applicable;

(e)                                  the
Offeror has not mailed the Offer within the time period provided for in section
2.1(c) of the Support Agreement;

(f)                                    the
Support Agreement has been terminated in accordance with its terms; or

(g)                                 a
bona fide written proposal for an
Alternative Transaction is made available to all holders of Shares on identical
terms which, if consummated in accordance with its terms, would result in a
transaction more favourable to such Shareholder from a financial point of view
than the Offer, as determined by such Shareholder, acting reasonably (a “Superior Proposal”), and the Offeror does
not increase the consideration under the Offer to consideration at least
equivalent to the consideration under the Superior Proposal on or prior to the
earlier to occur of (i) the third Business Day after  the Shareholders or the Company, whichever is
first, have advised the Offeror that they or it, as applicable, consider such
Alternative Transaction to be a Superior Proposal, and (ii) the last day on
which such Shareholder can prudently withdraw the Shares it has deposited under
the Offer in order to tender, deposit or otherwise deliver such Shares to the
Person making  the Superior Proposal.

5.3                               Agreement
to Terminate

This Agreement, in
respect of a Shareholder, may be terminated by a written instrument executed by
the Offeror and such Shareholder.

5.4                               Effect
of Termination

If this Agreement
is terminated in accordance with this Article 5, subject to Section 5.5, the
provisions of this Agreement will become null and void and of no further force
and effect and no party shall have liability to any other party, except in
respect of a breach of this Agreement which occurred prior to such termination,
and the Offeror shall no longer be required to make or pursue the Offer and, if
the Offer has been made, the Shareholder in respect of which this Agreement is
terminated shall be entitled to withdraw its Shareholder’s Shares from the
Offer.

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5.5                               Automatic
Termination

Subject to the
survival of representations and warranties as contemplated in Sections 4.1 and
4.2, this Agreement shall terminate automatically in respect of a Shareholder
immediately following the completion of the purchase by the Offeror of the
Shareholder’s Shares of such Shareholder.

ARTICLE 6

GENERAL

6.1                               Further
Assurances

Each of the
Shareholders and the Offeror will, from time to time, promptly execute and
deliver all such further documents and instruments and do all such acts and
things as the other party may reasonably require to effectively carry out or
better evidence or perfect the full intent and meaning of this Agreement.

6.2                               Survival
of Representations and Warranties

No investigations
made by or on behalf of the Offeror or any of its authorized agents at any time
shall have the effect of waiving, diminishing the scope of or otherwise
affecting any representation, warranty or covenant made by any Shareholder
herein or pursuant hereto.

6.3                               Disclosure

Except as
expressly contemplated herein or as required by applicable Laws or by any
Government Authority or Securities Authority, no party shall make any public
announcement or statement with respect to this Agreement or the transactions
contemplated herein without the approval of the other parties, which approval
shall not be unreasonably withheld or delayed. 
Each Shareholder acknowledges that the Offeror and the Company are
required by Law to disclose the nature and substance of this Agreement in the
Bid Circular and Directors’ Circular and a copy may be filed with applicable
Securities Authorities.  The parties
agree to consult with each other prior to issuing any public announcement or
statement with respect to this Agreement or the transactions contemplated herein.

6.4                               Singular,
Plural, etc.

In this Agreement,
words importing the singular number include the plural and vice versa and words
importing gender include the masculine, feminine and neuter genders.  Unless the context otherwise requires, any
reference to a “party” herein is a reference to a party hereto.  Any references to “including” or “includes”
means “including (or includes) without limitation”.

6.5                               Deemed
Currency

Unless otherwise
expressly stated, all references to dollars, “$” or currency herein shall be
deemed to be references to U.S. currency.

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6.6                               Headings,
etc.

The division of
this Agreement into Articles, Sections and Schedules, the provision of a table
of contents hereto and the insertion of the recitals and headings are for
convenience of reference only and shall not affect the construction or
interpretation of this Agreement and, unless otherwise stated, all references
in this Agreement or in the Schedules hereto to Articles, Sections and
Schedules refer to Articles, Sections and Schedules of and to this Agreement or
of the Schedules in which such reference is made, as applicable.

6.7                               Date
for any Action

In the event that
any date on which any action is required to be taken hereunder by any of the
parties is not a Business Day, such action shall be required to be taken on the
next succeeding day which is a Business Day.

6.8                               Governing
Law

This Agreement
shall be governed by and interpreted in accordance with the laws of the
Province of British Columbia and the laws of Canada applicable therein.

6.9                               Attornment

The parties hereby
irrevocably and unconditionally consent to and submit to the non-exclusive
jurisdiction of the courts of the Province of British Columbia for any actions,
suits or proceedings arising out of or relating to this Agreement or the
matters contemplated hereby and further agree that service of any process,
summons, notice or document by single registered mail to the addresses of the
parties set forth in this Agreement shall be effective service of process for
any action, suit or proceeding brought against either party in such court.  The parties hereby irrevocably and
unconditionally waive any objection to the laying of venue of any action, suit
or proceeding arising out of this Agreement or the matters contemplated hereby
in the courts of the Province of British Columbia and hereby further
irrevocably and unconditionally waive and agree not to plead or claim in any
such court that any such action, suit or proceeding so brought has been brought
in an inconvenient forum.

6.10                        Entire
Agreement

This Agreement,
including the schedules hereto and the provisions of the Support Agreement
incorporated herein by reference, constitutes the entire agreement and
understanding between and among the parties hereto with respect to the subject
matter hereof and supersedes any prior agreement or understanding with respect
thereto.

6.11                        Amendments

This Agreement may
not be modified, amended, altered or supplemented, except by written agreement
executed by all of the parties hereto.

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6.12                        Notices

Any notice,
consent, waiver, direction or other communication required or permitted to be
given under this Agreement by a party shall be in writing and shall be given by
delivery, or by facsimile transmission or by delivery addressed to the party to
which the notice is to be given at its address for service herein.  Any notice, consent, waiver, direction or
other communication aforesaid shall, if delivered, be deemed to have been given
and received on the date on which it was delivered to the address provided herein
(if a Business Day, if not, then the next succeeding Business Day) and if sent
by facsimile transmission be deemed to have been given and received at the time
of receipt (if a Business Day, if not, then the next succeeding Business Day)
unless actually received after 4:00 p.m. (Vancouver time) at the point of
delivery in which case it shall be deemed to have been given and received on
the next Business Day.

The address for
service for each of the parties hereto shall be as follows:

	
  

  	
   (a)

  	
  if to the Shareholders:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Baker Brothers Investments

  
	
   

  	
   

  	
  667 Madison Avene, 17th Floor

  
	
   

  	
   

  	
  New York, NY 10021

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:

  	
  Felix Baker

  
	
   

  	
   

  	
  Fax No.:

  	
  212.521.2245

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with a copy for information purposes but not as
  notice to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Sullivan & Cromwell LLP

  
	
   

  	
   

  	
  125 Broad Street

  
	
   

  	
   

  	
  New York, NY 10004-2498

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:

  	
  Richard Howe

  
	
   

  	
   

  	
  Fax No.:

  	
  212.558.3588

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  and to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Davies Ward Phillips & Vineberg LLP

  
	
   

  	
   

  	
  1 First Canadian Place, 44th Floor

  
	
   

  	
   

  	
  Toronto, ON M5X 1B1

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:

  	
  Berl Nadler and Peter Hong

  
	
   

  	
   

  	
  Fax No.:

  	
  416.863.0871

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  if to the Offeror:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Millennium Pharmaceuticals, Inc.

  
	
   

  	
   

  	
  49 Lansdowne Street

  
	
   

  	
   

  	
  Cambridge, MA 02139

  
							

 

 12
 

 

	
  

  	
   

  	
  Attention:

  	
  General Counsel

  
	
   

  	
   

  	
  Fax No.:

  	
  617.374.0074

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with a copy for information purposes but not as
  notice to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  McCarthy Tetrault LLP

  
	
   

  	
   

  	
  Suite 1300, Pacific Centre

  
	
   

  	
   

  	
  777 Dunsmuir Street

  
	
   

  	
   

  	
  Vancouver, BC V7Y 1K2

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:

  	
  Tim McCafferty

  
	
   

  	
   

  	
  Fax No.:

  	
  604.622.5780

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  and to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Wilmer Hale

  
	
   

  	
   

  	
  160 State Street

  
	
   

  	
   

  	
  Boston, MA 02110

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:

  	
  Michael LaCascia

  
	
   

  	
   

  	
  Fax No.:

  	
  617.526.5000

  

 

6.13                        Specific
Performance and other Equitable Rights

It is recognized
and acknowledged that a breach by any party of any material obligations
contained in this Agreement will cause the other party to sustain injury for
which it would not have an adequate remedy at law for money damages.  Accordingly, in the event of any such breach,
any aggrieved party shall be entitled to the remedy of specific performance of
such obligations and interlocutory, preliminary and permanent injunctive and
other equitable relief in addition to any other remedy to which it may be
entitled, at law or in equity.

6.14                        Assignment

Except as
expressly permitted by the terms hereof, neither this Agreement nor any of the
rights, interests or obligations hereunder shall be assigned by any of the
Shareholders without the prior express written consent of the Offeror and by
the Offeror without the prior express written consent of the Shareholders.  Notwithstanding the foregoing provisions of
this Section 6.14, the Offeror may assign all or any part of its rights or
obligations under this Agreement to a direct or indirect wholly-owned Subsidiary
of the Offeror, to a corporation which directly or indirectly wholly-owns the
Offeror, or to a direct or indirect wholly-owned Subsidiary of such a
corporation, provided that any such assignment will have no adverse tax or
other effects to each Shareholder under the Offer, and provided further that if
such assignment takes place, the Offeror shall continue to be liable to the
Shareholders for any default in performance by the assignee.

 13
 

6.15                        Expenses

Each of the
parties shall pay its respective legal, financial advisory and accounting costs
and expenses incurred in connection with the preparation, execution and
delivery of this Agreement and all documents and instruments executed or
prepared pursuant hereto and any other costs and expenses whatsoever and
howsoever incurred.

6.16                        Severability

Whenever possible,
each provision of this Agreement shall be interpreted in such manner as to be
effective and valid under applicable Law. 
Any provision of this Agreement that is invalid or unenforceable in any
jurisdiction shall be ineffective only to the extent of such invalidity or
unenforceability without invalidating or rendering unenforceable the remaining
provisions hereof, and any such invalidity or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

6.17                        Counterpart
Execution

This Agreement may
be executed in any number of counterparts, each of which shall be deemed to be
an original but all of which together shall constitute one and the same
agreement effective as of the date hereof.

6.18                        Several
Obligations of Shareholders

The obligations of
the Shareholders hereunder are several on the part of each Shareholder, and are
not joint and several among the Shareholders.

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

	
  

  	
  MILLENNIUM
  PHARMACEUTICALS,

  INC.,

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Laurie B. Keating

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
  Laurie B. Keating

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Senior Vice President, General

  
	
   

  	
   

  	
   

  	
   

  	
  Counsel and Secretary

  
	
   

  	
   

  	
   

  	
   

  	
   

  
						

 

	
  

  	
  BAKER BIOTECH FUND I, L.P.

  
	
   

  	
  By:

  	
  Baker/Tisch Capital, L.P.,

  
	
   

  	
   

  	
  its general partner

  
	
   

  	
  By:

  	
  Baker/Tisch Capital (GP), LLC,

  
	
   

  	
   

  	
  its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Felix Baker, Ph.D

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Felix Baker, Ph.D

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Managing Member

  
						

 

 14
 

 

	
  

  	
  14159, L.P.

  
	
   

  	
  By:

  	
  14159 Capital, L.P.,

  
	
   

  	
   

  	
  its general partner

  
	
   

  	
  By:

  	
  14159 Capital (GP), LLC,

  
	
   

  	
   

  	
  its general partner

  

 

	
  

  	
  By:

  	
   

  	
  /s/ Felix Baker, Ph.D

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Felix Baker, Ph.D

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Managing Member

  
						

 

 

	
  

  	
  BAKER BROTHERS LIFE SCIENCES,

  L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Baker Brothers Life Sciences Capital, L.P.

  
	
   

  	
   

  	
  its general partner

  
	
   

  	
  By:

  	
  Baker Brothers Life Sciences Capital, (GP) LLC,

  
	
   

  	
   

  	
  its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Felix Baker, Ph.D

  	
   

  
	
   

  	
   

  	
   

  	
  Name: 

  	
  Felix Baker, Ph.D

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Managing Member

  
						

 

 

	
  

  	
   

  	
  BAKER/TISCH INVESTMENTS, L.P.

  
	
   

  	
  By:

  	
  Baker/Tisch Capital, L.P.,

  
	
   

  	
   

  	
  its general partner

  
	
   

  	
  By:

  	
  Baker/Tisch Capital, (GP), LLC,

  
	
   

  	
   

  	
  its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Felix Baker, Ph.D

  	
   

  
	
   

  	
   

  	
   

  	
  Name: 

  	
  Felix Baker, Ph.D

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Managing Member

  
						

 

 15
 

 

	
  

  	
  BAKER BROS. INVESTMENTS, L.P.

  
	
   

  	
  By:

  	
  Baker Bros. Capital, L.P.,

  
	
   

  	
   

  	
  its general partner

  
	
   

  	
  By:

  	
  Baker Bros. Capital (GP), LLC,

  
	
   

  	
   

  	
  its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Felix Baker, Ph.D

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Felix Baker, Ph.D

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Managing Member

  
						

 

	
  

  	
  BAKER BROS. INVESTMENTS II, L.P.

  
	
   

  	
  By:

  	
  Baker Bros. Capital, L.P.,

  
	
   

  	
   

  	
  its general partner

  
	
   

  	
  By:

  	
  Baker Bros. Capital (GP), LLC,

  
	
   

  	
   

  	
  its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Felix Baker, Ph.D

  	
   

  
	
   

  	
   

  	
   

  	
  Name: 

  	
  Felix Baker, Ph.D

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Managing Member

  
						

 

 16

Schedule 4.1(b) — Shareholders and Ownership of
Shares

	
  Registered and Beneficial
  Owner

  	
   

  	
  Number and Class of Shares

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Baker Bros. Investments,
  L.P.

  	
   

  	
  330,058

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Baker Bros. Investments
  II, L.P.

  	
   

  	
  351,749

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Baker Biotech Fund I,
  L.P.

  	
   

  	
  3,604,620

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  14159, L.P.

  	
   

  	
  83,137

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Baker/Tisch
  Investments, L.P.

  	
   

  	
  28,177

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Baker Brothers Life
  Sciences, L.P.

  	
   

  	
  5,013,859

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  TOTAL

  	
   

  	
  9,411,500Exhibit 10.1

 

TERM
LOAN AGREEMENT

This Term Loan Agreement
(the “Agreement”), dated as of September 28, 2006, is between Power-One,
Inc., a Delaware corporation (“Borrower”), PWER Bridge, LLC, a Nevada
limited liability company (“Lender”), and, with respect to Section 1.7,
Stephens Investment Holdings, LLC, an Arkansas limited liability company (“Guarantor”).

SECTION 1

LOAN TERMS

1.1.                              Amount and Purpose.  Lender
will make a loan to Borrower in the principal amount of Fifty Million Dollars
($50,000,000) (the “Loan”) to be used for funding a portion of the
acquisition by Borrower or an affiliate thereof contemplated by that certain
Agreement of Purchase and Sale between Borrower and Magnetek, Inc. of even date
herewith (the “Purchase Agreement”).  The Loan is not revolving.  Any amount repaid may not be reborrowed. The
closing of the Loan (the “Loan Closing”) will occur contemporaneously
with the Closing (as such term is defined in the Purchase Agreement). If the
Purchase Agreement terminates for any reason, then this Agreement shall
terminate concurrently therewith.

1.2.                              Promissory Note.  The
Loan will be evidenced by a promissory note (the “Note”) payable to Lender
in the original principal amount of the Loan.

1.3.                              Documentation.  At
or prior to the Loan Closing, Borrower must deliver the following documents and
other items, executed and acknowledged as appropriate, all in form and
substance reasonably satisfactory to Lender:

(a)                                  the Note;

(b)                                 evidence of Borrower’s due formation and good
standing, as well as due authorization and execution of the Loan Documents;

(c)                                  a loan fee (the “Loan Fee”) in the
amount of Two Hundred Fifty Thousand Dollars ($250,000);

(d)                                 all reasonable out-of-pocket closing costs incurred
by Lender in connection with the closing of the Loan (provided that Lender
gives Borrower a reasonably itemized estimate thereof at least three business
days before Closing); and

(e)                                  a legal opinion letter from Borrower’s
counsel substantially in the form attached hereto as Exhibit A.

1.4.                              Loan Documents.  This
Agreement and the Note are referred to as the “Loan Documents.”

1.5.                              Disbursement Procedures.  Lender
will disburse the Loan Proceeds to an account designated by Borrower at the
Loan Closing.

1.6.                              Maintenance Fee.  One
the first (1st) anniversary of the Loan Closing, Borrower
shall pay to Lender a maintenance fee in an amount equal to one percent (1%) of
the outstanding principal balance of the Loan as of such date.

 1
 

 

1.7.                              Guaranty of Lender’s Obligations.   Guarantor unconditionally guarantees
the payment and performance by Lender of all of Lender’s obligations hereunder
(the “Obligations”) for the benefit of Borrower and its assignees.  Borrower
or its assignee may proceed directly against Guarantor for any funding
obligation or monetary damage claimed hereunder without first proceeding
against Lender. Guarantor agrees that its obligations hereunder are
irrevocable, absolute, independent and unconditional and shall not be subject
to any limitation, impairment or discharge for any reason, including any
circumstance which constitutes a legal or equitable discharge of a guarantor or
surety other than indefeasible performance in full of the Obligations.
Guarantor hereby waives notice of acceptance of this guaranty, presentments,
notices of default, nonpayment, partial payments and protest, all other notices
or formalities, any right to require prosecution of collection or remedies
against any person or entity or to pursue any other remedy in its power.  Guarantor agrees that one or more, and
successive and/or concurrent, actions may be brought against it, and that the
cessation of the liability for any reason, other than full satisfaction of the
Obligations, shall not in any way affect the liability of the Guarantor
hereunder. The guaranty set forth in this Section is a continuing guaranty and
shall remain in effect until all of the obligations arising under this guaranty
have been paid in full or otherwise satisfied or discharged. Guarantor hereby
waives, for the benefit of the Borrower and its successors and assigns:  (i) any defense arising by reason of
incapacity or lack of authority; (ii) any defense based upon any statute
or rule of law which provides that the obligation of a surety must be neither
larger in amount nor in other respects more burdensome than that of the
principal; and (iii) any principles or provisions of law, statutory or
otherwise, which are or might be in conflict with the terms of this guaranty
and any legal or equitable discharge of the Obligations hereunder.

SECTION 2

COVENANTS OF BORROWER

So long as the Loan is
outstanding:

2.1.                              Compliance with Law. 
Borrower and its subsidiaries will comply with all existing and future
laws, regulations, orders and requirements of, and all permits and approvals
from, and agreements with and commitments to, all governmental, judicial or
legal authorities having jurisdiction over Borrower and Borrower’s business,
except to the extent such non-compliance would not have a Material Adverse
Effect.  As used in this Agreement, “Material
Adverse Effect” shall mean any event or circumstances that would be
reasonably expected to (a) have a material adverse effect on the business
condition (financial or otherwise), operations, or properties of Borrower and
its subsidiaries, taken as a whole, or (b) materially adversely affect Borrower’s
ability to repay the Loan.

2.2.                              Use
of Proceeds.  Borrower shall use the
Loan proceeds for the purpose set forth in Section 1.1 above and for no other
purpose whatsoever.

2.3.                              Site Visits.  Borrower shall permit Lender,
its agents and representatives the right to enter and visit Borrower’s offices
at any reasonable time to inspect Borrower’s books and records and make copies
thereof and to confirm compliance with the terms of this Agreement, and at such
reasonable times during normal business hours and as often as may be reasonably
desired, upon reasonable advance written notice to Borrower, and Borrower shall
pay the reasonable out-of-pocket expenses of Lender in connection with one such
site visit per 12-month period.  Lender
is under no duty to examine any books or records and Lender shall not incur any
obligation or liability by reason of not making any such inspection or
inquiry.  Any site visit, observation or
examination by Lender is solely for the purpose of protecting and preserving Lender’s
rights under the Loan Documents.  Lender shall
use reasonable efforts to avoid interfering with Borrower’s business in
connection with the activities permitted under this Section.

 2
 

 

2.4.                              Insurance.  Borrower, for itself and on
behalf of its subsidiaries must maintain insurance on the respective businesses
similar in all material respects to that historically maintained pursuant to their
standard operating practices.

2.5.                              Preservation of Rights. 
Borrower and its subsidiaries must obtain, preserve and maintain in good
standing, as applicable, all material legal rights, privileges and franchises
necessary or desirable for the conduct of their businesses, except to the
extent failure to so obtain would not have a Material Adverse Effect.

2.6.                              Payment of Expenses. 
Borrower must pay all reasonable out-of-pocket costs and expenses
incurred by Lender in connection with the making, disbursement and
administration of the Loan, as well as any revisions, extensions, renewals or “workouts”
of the Loan, and in the exercise of any of Lender’s rights or remedies under
this Agreement.  Such costs and expenses
include reasonable out-of-pocket legal fees and expenses of Lender paid to Lender’s
outside counsel and any other reasonable out-of-pocket fees and costs for
services.  Borrower acknowledges that the
Loan Fee does not include amounts payable by Borrower under this Section.  All such sums incurred by Lender and not
reimbursed by Borrower within 30 days of Lender’s written request to Borrower are
considered additional loans to Borrower and bearing interest at the Past-Due
Rate provided in the Note.

2.7.                              Financial and Other Information.

(a)                                  Borrower will make all required regulatory
filings on a timely basis, including filing on Securities Exchange Commission (“SEC”)
Forms 10-K and 10-Q.  Such filings will,
in all material respects, be in the form required by applicable SEC rules and
regulations and include the financial statements and other financial
information that are required by applicable law and regulations to be included
therein by Borrower.

(b)                                 Borrower shall provide to Lender copies of
its United States federal tax returns, and any extensions thereof, together
with all supporting schedules, within thirty (30) days of filing date.

(c)                                  On
written request by Lender to Borrower, Borrower must promptly provide Lender
with any other financial or other information concerning its affairs and
properties as Lender may reasonably request.

2.8.                              Notices.  Borrower must promptly notify Lender
in writing of:

(a)                                  Any litigation affecting Borrower or any of
its subsidiaries where the amount claimed is Five Hundred Thousand Dollars ($500,000)
or more;

(b)                                 Any notice that Borrower’s or any of its
subsidiaries’ business fails in any respect to comply with any applicable law,
regulation or court order, if such non-compliance would have a Material Adverse
Effect; and

(c)                                  The occurrence of any Material Adverse Effect.

2.9.                              Notice of Change. 
Borrower must give Lender prior written notice of any change in:

(a)                                  The location of its chief executive office;
and

(b)                                 Borrower’s name, business structure or state
of formation.

 3
 

 

SECTION 3

NEGATIVE COVENANTS OF BORROWER

 

So long as the Loan remains
outstanding:

3.1.                              Negative Covenants.  Without
Lender’s prior written consent, Borrower must not engage in or do any of the
following:

(a)                                  Sell any assets for less than fair market
price except in the ordinary course of business;

(b)                                  Create, incur, assume or suffer to exist any
further indebtedness, whether secured or unsecured, or permit any of its subsidiaries
to create, incur, assume or suffer to exist any further indebtedness, whether
secured or unsecured, other than (1) indebtedness existing at Magnetek S.p.A or
any subsidiary thereof as of the Closing (the “Acquisition Debt”), (2) indebtedness
described in the financial statements described in Section 4.6, and (3)
additional junior or subordinated indebtedness of no more than Five Million US
Dollars (US$5,000,000) in the aggregate;

(c)                                  Merge, dissolve, liquidate, combine, consolidate
with or into another entity, lease or dispose of (whether in one transaction or
in a series of related transactions) all or substantially all of its assets
(whether now owned or hereafter acquired) to or in favor of any other person or
entity, except for (1) transactions in which Borrower is the survivor that do
not cause a Material Adverse Effect, and (2) transactions by and among Borrower’s
subsidiaries as part of a reorganization;

(d)                                 Engage in any material line of business
substantially different from those lines of business conducted by Borrower or
any lines of business acquired by Borrower pursuant to the Acquisition
Agreement as of the closing of the Loan or any business reasonably related or
incidental thereto;

(e)                                  Engage
in any private or open-market purchase of its outstanding capital stock or pay
any dividends with respect to its outstanding capital stock, except pursuant to
the stock repurchase program currently authorized by Borrower; or

(f)                                    Amend, modify or change
its certificate of incorporation or bylaws in a manner materially adverse to
Lender.

SECTION 4

REPRESENTATIONS AND WARRANTIES BY BORROWER

Borrower represents and warrants to Lender that:

4.1.                              Formation.  Borrower (a) is a corporation
duly organized, validly existing and in good standing under the laws of the State
of Delaware, (b) has all requisite power and authority and all requisite
governmental licenses, authorizations, consents and approvals to (i) own its
assets and carry on its business, and (ii) execute, deliver and perform its
obligations under the Loan Documents to which it is a party, and (c) is duly
qualified and is licensed and in good standing under the Laws of each
jurisdiction where its ownership, lease or operation of properties or the
conduct of its business requires such qualification or license, except where
the failure to be so licensed would not have a Material Adverse Effect.

 4
 

 

4.2.                              Authority.  The execution, delivery and
performance by Borrower of each Loan Document to which it is party have been
duly authorized by all necessary corporate, company or other organizational
action, and do not (a) contravene the terms of Borrower’s certificate of incorporation or bylaws;
(b) conflict with or result in any breach or contravention of, or the creation
of any lien under (i) any contractual obligation to which Borrower is a party,
or (ii) any order, injunction, writ or decree of any governmental authority or
any arbitral award to which Borrower or its property is subject; (c) violate
any law; or (d) result in a limitation on any licenses, permits or other
approvals applicable to the business, operations or properties of Borrower,
except, in the case of (b), (c) or (d), where the conflict, breach, violation
or limitation would not have a Material Adverse Effect.

4.3.                              Governmental Authorization; Other Consents.  No
approval, consent, exemption, authorization, or other action by, or notice to,
or filing with, any governmental authority or any other person with respect to
any material contractual obligation is necessary or required in connection with
the execution, delivery or performance by, or enforcement against, Borrower of
this Agreement or any other Loan Document, other than those that have already
been obtained and are in full force and effect and other than those which the
failure to obtain would not have a Material Adverse Effect.

4.4.                              Binding Effect.  This
Agreement and each other Loan Document has been duly executed and delivered by
Borrower.  This Agreement and each other
Loan Document constitutes a legal, valid and binding obligation of Borrower,
enforceable in accordance with its terms except as enforceability may be
limited by applicable bankruptcy or similar laws or by equitable principles
relating to enforceability.

4.5.                              Litigation.  There are no actions, suits,
investigations, criminal prosecutions, civil investigative demands, impositions
of criminal or civil fines and penalties, proceedings, claims or disputes
pending or, to the actual knowledge of Borrower (without any obligation to take
any investigation or inquiry), threatened in writing, at law, in equity, in
arbitration or before any governmental authority, by or against Borrower or
against any of their properties or revenues that (a) purport to prohibit or
restrain this Agreement or any other Loan Document, or (b) if determined
adversely, could reasonably be expected to have a Material Adverse Effect.

4.6.                              Financial Information.  The unaudited
financial statements for the fiscal quarter ended June 30, 2006 included in the
Quarterly Report on Form 10-Q filed by Borrower on August 9th,
2006 fairly and accurately represent in all material respects the financial
condition (including all material contingent liabilities) of Borrower as of June
30, 2006 in accordance with generally accepted accounting principles
consistently applied (except for the absence of footnotes and for year-end
adjustments), unless otherwise noted therein. 
Since the dates of such financial statements, there has been no Material
Adverse Effect.

4.7.                              Borrower Not a “Foreign Person”. 
Borrower is not a “foreign person” within the meaning of Section
1445(f)(3) of the Internal Revenue Code of 1986, as amended from time to time.

4.8.                              Status of Property and
Assets.  To Borrower’s knowledge, Borrower and its
subsidiaries have (A)  good and
marketable title to its owned real properties, (B) valid title to all other
assets reflected in its financial statements as being owned by them, subject to
no lien, mortgage, pledge, charge or encumbrance of any kind except those
securing indebtedness described in such financial statements or which do not
materially affect the present or proposed use of such properties or assets or
would not cause a Material Adverse Effect, and (C) valid and subsisting leases with
respect to leased properties, with only such exceptions as in the aggregate are
not material and do not interfere with the conduct of the business of Borrower
and its subsidiaries or would not cause a Material Adverse Effect.  To Borrower’s actually

 5
 

 

knowledge, there exists no
default under the provisions of any lease, contract or other obligation to
which Borrower is a party which may result in a Material Adverse Effect.

4.9.                              Tax Matters.  Borrower and its subsidiaries
have filed all federal, state and other tax returns and reports which have been
required to be filed and have paid all material taxes indicated by said returns
and all assessments received by them to the extent that such taxes have become
due and there is no tax deficiency that has been asserted in writing against
Borrower that might have a Material Adverse Effect.  All material tax liabilities are adequately
provided for on the books of Borrower and its subsidiaries.

4.10.                        Licenses and Intellectual Property. 
Borrower and its subsidiaries hold all licenses, authorizations,
charters, certificates and permits from governmental authorities which are
necessary to the conduct of their businesses, except to the extent failure to
hold would not have a Material Adverse Effect, and neither Borrower nor any of
its subsidiaries has received written notice of any proceeding relating to the
revocation or modification of any of such licenses, authorizations, charters,
certificates or permits.  Borrower and
its subsidiaries own or otherwise possess rights to the patents, patent rights,
licenses, inventions, copyrights, trademarks, service marks and trade names
presently employed by them in connection with the businesses now operated by
them, and neither Borrower nor any of its subsidiaries has received any notice
of infringements of or conflict with asserted rights of others with respect to
any of the foregoing, except where such infringement or conflict would not
reasonably be expected to result in a Material Adverse Effect.

4.11.                        Labor Matters.  No
labor dispute is pending or, to the knowledge of Borrower, threatened in writing
against Borrower’s or any of its subsidiaries’ employees which could result in
a Material Adverse Effect.  No collective
bargaining agreement exists with any of Borrower’s United States employees and,
to Borrower’s knowledge, as of the date hereof, there is no union organizing
efforts pending with respect to Borrower’s United States employees.

4.12.                        Political Contributions.  To
Borrower’s knowledge, neither Borrower nor any of its subsidiaries has at any
time during the last five (5) years  (a)
made any unlawful contribution to any candidate for foreign office, or failed
to disclose fully any contribution in violation of law, or (b) made any payment
to any federal or state governmental officer or official, or other person
charged with similar public or quasi-public duties, other than payments
required or permitted by the laws of the United States or any jurisdiction
thereof, in any case that would result in a Material Adverse Effect.

4.13.                        Hazardous Substances. 
Without limiting the generality of any of the foregoing representations
(A) none of the operations of Borrower or its subsidiaries is in violation of
any federal, state or local statute, rule, regulation, decision or order of any
regulatory authority or governmental body or any court relating to the use,
disposal or release of hazardous or toxic substances or relating to the
protection of human health and safety or the protection or restoration of the
environment or human exposure to hazardous or toxic substances or wastes,
pollutants or contaminants, except to the extent such violation would not have
a Material Adverse Effect; (B) neither Borrower nor any of its subsidiaries has
been notified in writing that it is under investigation or under review by any
regulatory authority or governmental body with respect to compliance with any
environmental law which could reasonably be expected to cause a Material
Adverse Effect; (C) neither Borrower nor any of its subsidiaries has any
liability in connection with the past generation, use, treatment, storage,
disposal or release of any hazardous material, except to the extent such
liability would not have a Material Adverse Effect; (D) there is no hazardous
material that may reasonably be expected to pose any material risk to safety,
health, or the environment, on, under or about any property owned, leased or
operated by Borrower or any of its subsidiaries or, to the knowledge of
Borrower, any property adjacent to any such property, which liability

 6
 

 

could reasonably be expected to cause a Material
Adverse Effect; and (E) there has heretofore been no release of any hazardous
material on, under or about such property, or, to the knowledge of Borrower,
any such adjacent property, which release could reasonably be expected to cause
a Material Adverse Effect.  None of the
currently owned real property or, to the actual knowledge of Borrower,
currently leased or previously owned real property of Borrower or any of its
subsidiaries is listed or proposed for listing on the National Priorities List
pursuant to the Comprehensive Environmental Response, Compensation and
Liability Act of 1980, as amended, or on the Comprehensive Environmental
Response Compensation Liability Information System List or any Market, subject
only to official notice of issuance.

4.14.                        Accounting Matters. 
Borrower maintains systems of internal accounting and disclosure
controls and procedures sufficient to provide in all material respects
reasonable assurances that (A) material transactions are executed in accordance
with management’s general or specific authorization; (B) material transactions
are recorded as necessary to permit preparation of financial statements in
conformity with GAAP and to maintain accountability for assets; (C) access to material
assets is permitted only in accordance with management’s general or specific
authorization; (D) the recorded accountability for material assets is compared
with existing material assets at reasonable intervals and appropriate action is
taken with respect to any differences; and (E) material accounts, notes and
other receivables and inventory are recorded accurately, and proper and
adequate procedures are implemented to effect the collection thereof on a
current and timely basis.  Borrower has
complied with its systems of internal accounting and disclosure controls and
procedures in all material respects and has not received a written notification
from any accountants, independent auditors or other consultants challenging the
adequacy or requesting modification of such systems.  Borrower’s systems of internal accounting and
disclosure controls and procedures in all material respects (X) are sufficient
to ensure that information required to be disclosed by Borrower in the reports
that it files and submits to the SEC under the Securities Exchange Act of 1934,
as amended, is accumulated, recorded, processed, communicated to Borrower’s
principal executive officer and principal financial officer, summarized and
reported within the time periods specified in the SEC’s rules and forms, (Y)
contain no deficiencies in the design or operation of such controls and
procedures which could materially adversely affect Borrower’s ability to so
accumulate, record, process, communicate, summarize and report financial and
other relevant information and (Z) are sufficient to satisfy Section 302 of the
Sarbanes-Oxley Act of 2002 and related rules promulgated thereunder.

SECTION 5

REPRESENTATIONS AND WARRANTIES BY LENDER

Lender represents and warrants to Borrower that:

5.1.                              Formation.  Lender (a) is a limited
liability company duly organized, validly existing and in good standing under
the laws of the State of Nevada, and (b) has all requisite power and authority
and all requisite governmental licenses, authorizations, consents and approvals
to (i) own its assets and carry on its business, and (ii) execute, deliver and
perform its obligations under this Agreement.

5.2.                              Authority.  The execution, delivery and
performance by Lender of this Agreement have been duly authorized by all
necessary company action, and do not (a) contravene the terms of Lender’s articles of organization or operating agreement;
(b) conflict with or result in any breach or contravention of, or the creation
of any lien under (i) any contractual obligation to which Lender is a party, or
(ii) any order, injunction, writ or decree of any governmental authority or any
arbitral award to which Lender or its property is subject; or (c) violate any
law.

 7
 

 

5.3.                              Governmental Authorization; Other Consents.  No
approval, consent, exemption, authorization, or other action by, or notice to,
or filing with, any governmental authority or any other person with respect to
any material contractual obligation is necessary or required in connection with
the execution, delivery or performance by, or enforcement against, Lender of
this Agreement, other than those that have already been obtained and are in
full force and effect.

5.4.                              Binding Effect.  This
Agreement has been duly executed and delivered by Lender.  This Agreement constitutes a legal, valid and
binding obligation of Lender, enforceable in accordance with its terms except
as enforceability may be limited by applicable bankruptcy or similar laws or by
equitable principles relating to enforceability.

SECTION 6

DEFAULT AND REMEDIES.

6.1.                              Events of Default. 
Borrower will be in default under this Agreement upon the occurrence of
any one or more of the following events (“Event of Default”):

(a)                                  Borrower fails to make any payment due under
the Note, within five (5) days after the date due (provided that such five (5)
day period shall not apply on any payment due on the Maturity Date, as defined
in the Note), or Borrower fails to make any payment demanded by Lender under
any other Loan Document, within ten (10) days after the date due or after written
demand by Lender if no due date is stated therefor; or

(b)                                 Borrower fails to timely observe, perform and
comply with any covenant contained in this Agreement other than those referred
to in clause (a), and does not either cure that failure within thirty (30) days
after written notice from Lender, or, if the default cannot be cured in thirty
(30) days, within a reasonable time but not to exceed ninety (90) days after
written notice; or

(c)                                  Borrower becomes insolvent or the subject of
any bankruptcy or other voluntary or involuntary proceeding, in or out of
court, for the adjustment of debtor-creditor relationships; or

(d)                                 Borrower dissolves, terminates, or
liquidates; or

(e)                                  Any representation or warranty made or given
by Borrower in this Agreement or any other Loan Document proves to have been false
or misleading in any material respect at the time given; or

(f)                                    A default is declared or occurs under any of
the other Loan Documents (and, if a cure period is provided with respect to
said default, said default is not fully cured within the period provided in
said Loan Document for cure of said default); or

(g)                                 A final, non-appealable judgment from a court
of competent jurisdiction in an amount greater than Five Million Dollars ($5,000,000)
in excess of any insurance coverage is entered against Borrower; or

(h)                                 Borrower or any of its subsidiaries defaults
under any instrument for indebtedness or borrowed money (other than any
Acquisition Debt, and other than any indebtedness of Magnetek S.p.A) that
results in the acceleration of such indebtedness; or

(i)                                     Borrower experiences a Material Adverse
Effect.

 8
 

 

6.2.                              Remedies.  If an Event of Default occurs
under this Agreement, (a) Lender may exercise any right or remedy which it has
under any of the Loan Documents, or which is otherwise available at law or in
equity or by statute, and all of Lender’s rights and remedies shall be
cumulative, (b) Lender shall have the right to set-off and apply, to the extent thereof and to the maximum extent
permitted by law, any and all deposits, funds, or assets at any time held and
any and all other indebtedness at any time owing by Lender to or for the credit
or account of Borrower against any indebtedness owning under the Note
immediately upon the occurrence of any default notwithstanding any notice
requirements, grace or cure periods, and (c) all of Borrower’s
obligations under the Loan Documents shall become immediately due and payable
without notice of default, presentment or demand for payment, protest or notice
of nonpayment or dishonor, or other notices or demands of any kind or
character, all at Lender’s option, exercisable in its sole discretion.

6.3.                              Cure Periods.  All
notice and cure periods provided in this Agreement or in any Loan Document
shall run concurrently with any notice or cure periods provided by law.

SECTION 7

MISCELLANEOUS PROVISIONS

7.1.                              No Waiver; Consents.  No
alleged waiver by Lender is effective unless in writing, and no waiver may be
construed as a continuing waiver.  No
waiver is implied from any delay or failure by Lender to take action on account
of any default of Borrower.  Consent by Lender
to any act or omission by Borrower may not be construed as a consent to any
other or subsequent act or omission.

7.2.                              No Third Parties Benefited.  This
Agreement is made and entered into for the sole protection and benefit of Lender
and Borrower and their successors and assigns. 
No trust fund is created by this Agreement and no other persons or
entities have any right of action under this Agreement or any right to the Loan
funds.

7.3.                              Notices.  Any and all notices and
demands by either party hereto to the other party, required or desired to be
given hereunder shall be in writing and shall be validly given only if (i)
personally delivered, (ii) deposited in the United States mail, certified or
registered, postage prepaid, return receipt requested, or (iii) if made by
Federal Express or other delivery service which keeps records of deliveries and
attempted deliveries.  Service shall be
conclusively deemed made on the first business day delivery is attempted or upon
receipt, whichever is sooner, and sent to the address set forth below the
receiving party’s signature set forth below 
Those addresses may be changed by either party by notice to the other
party, which notice of change shall be effective upon actual receipt by the
other party.

7.4.                              Attorneys’ Fees.  If
any lawsuit or arbitration is commenced which arises out of, or which relates
to this Agreement, the Loan Documents or the Loan, including any alleged tort
action, regardless of which party commences the action, the prevailing party is
entitled to recover from each other party such sums as the court, referee or
arbitrator may adjudge to be reasonable attorneys’ fees in the action or
proceeding, in addition to costs and expenses otherwise allowed by law.  Any such attorneys’ fees incurred by either
party in enforcing a judgment in its favor under this Agreement are recoverable
separately from and in addition to any other amount included in such judgment,
and such attorneys’ fees obligations are intended to be severable from the
other provisions of this Agreement and to survive and not be merged into any
such judgment.  In all other situations,
including any bankruptcy or other voluntary or involuntary proceeding, in or
out of court, for the adjustment of debtor-creditor relationships, Borrower
agrees to pay all of Lender’s reasonable out-of-pocket costs and expenses,
including reasonable out-of-pocket attorneys’ fees, which may be incurred in
any effort to collect or enforce the Loan or any part of it or any term of any
Loan Document.

 9
 

 

7.5.                              Heirs, Successors and Assigns.  The
terms of this Agreement shall bind and benefit the heirs, legal
representatives, successors and assigns of the parties; provided, however, that
neither Lender nor Borrower may assign this Agreement without the prior written
consent of the other.

7.6.                              Interpretation.  The
language of this Agreement must be construed as a whole according to its fair
meaning, and not strictly for or against any party.  The word “include(s)” means “include(s),
without limitation,” and the word “including” means “including, but not limited
to.”

7.7.                              Time of the Essence.  Time
is of the essence in the performance of this Agreement and the other Loan
Documents.

7.8.                              Severability. If it is determined by a court of competent
jurisdiction, government action or binding arbitration that any provision of
this Agreement (or part thereof) is invalid, illegal, or otherwise
unenforceable in any jurisdiction, such provision shall be enforced in such
jurisdiction as nearly as possible in accordance with the stated intention of
the parties, while the remainder of this Agreement shall remain in full force
and effect and bind the parties according to its terms, and any such
determination shall not invalidate or render unenforceable such provision in
any other jurisdiction.  To the extent
any provision of this Agreement (or part thereof) cannot be enforced in
accordance with the stated intentions of the parties, such provision (or part
thereof) shall be deemed not to be a part of this Agreement; provided that in
such event the parties shall use their reasonable efforts to negotiate, in good
faith, a substitute, valid and enforceable provision which most nearly effects
the parties’ intent in entering into this Agreement.

7.9.                              Counterparts.  This
Agreement may be executed in one or more counterparts, each of which is, for
all purposes deemed an original and all such counterparts taken together,
constitute one and the same instrument.

7.10.                        Choice of Law; Venue.  This
Agreement is governed by Nevada law without regard to conflicts of laws
principals.  Any action brought hereunder
or in connection with the Loan Documents shall be brought in the state or
federal courts located in Clark County, Nevada. 
Each party waives any claim of inconvenient forum.

7.11.                        Integration.  This Agreement, together with
the other Loan Documents, sets forth the entire agreement and understanding of
the parties relating to the subject matter hereof and merges and supersedes all
prior understandings (whether written, verbal or implied) with respect thereto.

7.12.                        Modification; Amendment.  No
modification of, or amendment to, this Agreement shall be effective unless in
writing signed by both parties.  This
Agreement shall not be supplemented or modified by any course of dealing or
other trade usage.

7.13.                        Headings.  All section headings are for
convenience only and shall not be construed as part of this Agreement or as a
limitation or expansion of the scope of the sections to which they refer.

7.14.                        Actions.  Lender has the right, but not
the obligation, to commence, appear in, and defend any action or proceeding
which might affect its rights, duties or liabilities relating to the Loan or
any of the Loan Documents.  Borrower must
pay within 30 days of written demand all of Lender’s reasonable out-of-pocket
costs, expenses, and legal fees and expenses of Lender’s counsel incurred in
those actions or proceedings.

 10
 

 

7.15.                        Loan Commission.  Lender
is not obligated to pay any brokerage commission or fee in connection with or
arising out of the Loan.

7.16.                        Credit Verification.  Borrower
hereby authorizes Lender to check any credit references and obtain credit
reports from credit reporting agencies of Lender’s choice in connection with
any monitoring, collection or future transaction concerning the Loan, including
any modification, extension or renewal of the Loan.

7.17.                        WAIVER OF JURY TRIAL. 
BORROWER WAIVES TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO WHICH
BORROWER AND LENDER MAY BE PARTIES, ARISING OUT OF, IN CONNECTION WITH OR IN
ANY WAY PERTAINING TO, THIS AGREEMENT, THE NOTE OR ANY OF THE OTHER LOAN
DOCUMENTS.  IT IS AGREED AND UNDERSTOOD
THAT THIS WAIVER CONSTITUTES A WAIVER OF TRIAL BY JURY OF ALL CLAIMS AGAINST
ALL PARTIES TO SUCH ACTION OR PROCEEDINGS, INCLUDING CLAIMS AGAINST PARTIES WHO
ARE NOT PARTIES TO THIS AGREEMENT.  THIS
WAIVER IS KNOWINGLY, WILLINGLY AND VOLUNTARILY MADE BY BORROWER, AND BORROWER
HEREBY REPRESENTS THAT NO REPRESENTATIONS OF FACT OR OPINION HAVE BEEN MADE BY
ANY INDIVIDUAL TO INDUCE THIS WAIVER OF TRIAL BY JURY OR TO IN ANY WAY MODIFY
OR NULLIFY ITS EFFECT.  BORROWER FURTHER
REPRESENTS AND WARRANTS THAT IT HAS BEEN REPRESENTED IN THE SIGNING OF THIS
AGREEMENT AND IN THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL, OR HAS
HAD THE OPPORTUNITY TO BE REPRESENTED BY INDEPENDENT LEGAL COUNSEL SELECTED OF
ITS OWN FREE WILL, AND THAT IT HAS HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER
WITH COUNSEL.

7.18.                        Confidentiality.  Lender
agrees to keep confidential and not use for any purpose other than evaluating
and monitoring the Loan or bringing any action for the enforcement of the Loan
Documents, including, without limitation, any collection action, any
confidential, nonpublic or proprietary information about Borrower and its
subsidiaries that it may receive pursuant to this Agreement, except to the
extent in the public domain through no fault of Lender or its affiliates.

SIGNATURE PAGE FOLLOWS.

 11
 

 

IN WITNESS WHEREOF, Borrower and Lender have
executed this Agreement as of the date first above written.

	
  Borrower:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Power-One, Inc.,

  	
   

  	
   

  
	
  a Delaware corporation

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Paul E. Ross

  	
   

  
	
   

  	
  Paul E. Ross,
  Chief Financial Officer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address of Borrower:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Power-One, Inc.

  	
   

  	
   

  
	
  740 Calle Plano

  	
   

  	
   

  
	
  Camarillo, CA 93012

  	
   

  	
   

  
	
  Attn: General Counsel

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Lender:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  PWER Bridge, LLC,

  	
   

  	
   

  
	
  a Nevada limited liability company

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Mark Doramus

  	
   

  
	
   

  	
  Mark Doramus,
  Manager

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address of Lender:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  PWER Bridge, LLC

  	
   

  	
   

  
	
  c/o David Knight

  	
   

  	
   

  
	
  Stephens, Inc.

  	
   

  	
   

  
	
  111 Center Street

  	
   

  	
   

  
	
  Little Rock, Arkansas 72201

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 1.7 above is agreed to by:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Stephens Investment Holdings, LLC,

  	
   

  	
   

  
	
  an Arkansas limited liability company

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Kathy Bryant

  	
   

  
	
   

  	
  Kathy Bryant,
  Vice President

  	
   

  
					

 

 12

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