Exhibit 10.1


 


AMENDMENT TO RIGHTS AGREEMENT

BETWEEN BEI TECHNOLOGIES, INC. AND

AMERICAN STOCK TRANSFER & TRUST COMPANY


 


THIS AMENDMENT TO RIGHTS
AGREEMENT (the “Amendment”)
is made as of the 21st day of July, 2005, by and between BEI
TECHNOLOGIES, INC., a Delaware corporation (the “Company”), and AMERICAN STOCK TRANSFER & TRUST COMPANY, a New York
banking corporation (the “Rights Agent”).


 


WHEREAS, the Company is entering into an Agreement and
Plan of Merger (as the same may be amended from time to time, the “Merger
Agreement”), among the Company, Schneider Electric SA, a societé anonyme organized under the laws of the Republic of
France (“Parent”), and Beacon Purchaser Corporation,
a Delaware corporation and an indirect wholly-owned subsidiary of Parent (“Acquisition
Sub”), pursuant to which Acquisition Sub will: (i) make a tender offer to
acquire all of the issued and outstanding shares of common stock of the Company,
par value $0.001 per share, on the terms and subject to the conditions set
forth in the Merger Agreement (such tender offer, as it may be amended from
time to time, is referred to in this Amendment as the “Offer”); and (ii) after
acquiring shares of common stock of the Company pursuant to the Offer,
Acquisition Sub will merge with and into the Company upon the terms and subject
to the conditions set forth in the Merger Agreement;


 


WHEREAS, the Company and the Rights Agent (as successor
Rights Agent to Chasemellon Shareholder Services, L.L.C.) are parties to that
certain Rights Agreement, dated as of September 11, 1997, as it was
amended on December 22, 2004 (the “Rights Agreement”);


 


WHEREAS, the Company desires to amend the Rights
Agreement in connection with the execution and delivery of the Merger
Agreement; and


 


WHEREAS, the Board of Directors of the Company has
approved this Amendment and authorized its appropriate officers to execute and
deliver the same to the Rights Agent.


 


NOW, THEREFORE, in accordance with the procedures for amendment
of the Rights Agreement set forth in Section 27 thereof, and in
consideration of the foregoing and the mutual agreements herein set forth, the
parties hereby agree as follows:


 


1.             Capitalized terms that are not otherwise defined
herein shall have the meanings ascribed to them in the Rights Agreement.


 


2.             The definition of “Acquiring Person” set forth in
Section 1(a) of the Rights Agreement is amended by adding the
following sentence to the end of that section:


 


Notwithstanding the foregoing, no Person shall be or become an Acquiring
Person by reason of (i) the execution and delivery of the Agreement and
Plan of Merger, dated as of July 21, 2005, among Schneider Electric SA, a societé anonyme organized under the laws of the Republic of
France (“Parent”), and Beacon Purchaser
Corporation, a Delaware corporation and an indirect wholly-owned subsidiary of
Parent (“Acquisition Sub”), and the Company (the


 


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“Merger
Agreement”) or the execution of any amendment thereto, (ii) the execution
and delivery of those Transaction Support Agreements executed by Parent and
each of the persons listed on the signature page of such Transaction
Support Agreements in connection with the execution and delivery of the Merger
Agreement and dated July 21, 2005 (the “Transaction Support Agreements”)
or the execution of any amendment thereto, (iii) the purchase by
Acquisition Sub of Common Shares pursuant to a tender offer to acquire all of
the issued and outstanding Common Shares to be commenced by Acquisition Sub
pursuant to, and on the terms and subject to the conditions set forth in, the
Merger Agreement (such tender offer, as it may be amended from time to time, is
referred to in this Agreement as of the “Offer”), (iv) the merger of Acquisition
Sub with and into the Company pursuant to, and on the terms and subject to the
conditions set forth in, the Merger Agreement (the “Merger”), or (v) the
consummation of any other transaction contemplated by the Merger Agreement, as
it may be amended from time to time.


 


3.             The definition of “Shares Acquisition Date” in Section l(o) of the Rights Agreement is hereby amended by adding the
following sentence to the end of that section:


 


Notwithstanding
anything else set forth in this Agreement, a Shares Acquisition Date shall be
deemed not to have occurred by reason of (i) the execution and delivery or
amendment of the Merger Agreement or the Transaction Support Agreements, (ii) the
purchase by Acquisition Sub of Common Shares pursuant to the Offer, (iii) the
Merger, or (iv) the consummation of any other transaction contemplated by
the Merger Agreement.


 


4.             Section 3(a) of the Rights Agreement is
hereby amended by adding the following sentence to the end of that section:


 


Notwithstanding
anything else set forth in this Agreement, no Distribution Date shall be deemed
to have occurred by reason of (i) the execution and delivery or amendment
of the Merger Agreement or the Transaction Support Agreements, (ii) the
purchase by Acquisition Sub of Common Shares pursuant to the Offer, (iii) the
Merger, or (iv) the consummation of any other transaction contemplated by
the Merger Agreement.


 


5.             Section 7(a)(i) of
the Rights Agreement is hereby amended to delete the phrase “(the “Final
Expiration Date”)” so that it shall read as follows:


 


(i) the Close of Business on September 10,
2007,


 


6.             Section 7(a) is further amended by
deleting the word “or” at the end of Section 7(a)(ii) and
by adding the following clause at the end of Section 7(a):


 


, or (iv) the moment in time immediately prior to the effective time
of the Merger, as such time is determined pursuant to Section 2.1 of the
Merger Agreement (the earlier to occur of the events described in clauses (i) and
(iv) of this section shall be referred to as the “Final Expiration
Date”).


 


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7.             Section 11(a)(ii) of
the Rights Agreement is hereby amended by adding the following sentence to the
end of that section:


 


Notwithstanding
anything else set forth in this Agreement, no event requiring an adjustment
under this Section 11(a)(ii) shall be deemed
to have occurred by reason of (i) the execution and delivery or amendment
of the Merger Agreement or the Transaction Support Agreements, (ii) the
purchase by Acquisition Sub of Common Shares pursuant to the Offer, (iii) the
Merger, or (iv) the consummation of any other transaction contemplated by
the Merger Agreement.


 


8.             Sections 13(a)(x) and
(y) of the Rights Agreement are amended to read as follows:


 


(a)           In
the event that, following the Shares Acquisition Date, or, if a Transaction is
proposed, the Distribution Date, directly or indirectly (x) the Company shall
consolidate with, or merge with and into, any Interested Stockholder, or if in
such merger or consolidation all holders of Common Shares are not treated
alike, any other Person, (y) any Interested Stockholder, or if in such merger
or consolidation all holders of Common Shares are not treated alike, any other Person,
shall consolidate with the Company, or merge with and into, the Company, and
the Company shall be the continuing or surviving corporation of such merger
(other than, in the case of either transaction described in (x) or (y), (i) a
merger or consolidation which would result in all of the Voting Power
represented by the securities of the Company outstanding immediately prior
thereto continuing to represent (either by remaining outstanding or by being
converted into securities of the surviving entity) all of the voting power
represented by the securities of the Company or such surviving entity
outstanding immediately after such merger or consolidation and the holders of
such securities not having changed as a result of such merger or consolidation
or (ii) the Merger),


 


The remaining portion of Section 13(a) shall
be unchanged and shall remain in full force and effect.


 


9.             The first phrase of Section 13(c) of
the Rights Agreement is hereby amended to read as follows:


 


The
Company shall not consummate any such consolidation, merger (other than the Merger),
sale or transfer unless the Principal Party shall have a sufficient number of
authorized Common Shares that have not been issued or reserved for issuance to
permit the exercise in full of the Rights in accordance with this Section 13
and unless prior thereto the Company and each Principal Party and each other
Person who may become a Principal Party as a result of such consolidation,
merger, sale or transfer shall have (i) executed and delivered to the
Rights Agent a supplemental agreement providing for the terms set forth in
paragraphs (a) and (b) of this Section 13 and (ii) prepared,
filed and had declared and remain effective a registration statement under the
Act on the appropriate form with respect to Rights and the securities
exercisable upon exercise of the


 


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Rights and further providing
that, as soon as practicable after the date of any consolidation, merger, sale
or transfer of assets mentioned in paragraph (a) of this Section 13,
the Principal Party at its own expense will: 
.. . .


 


The remaining portion of Section 13(c) shall
be unchanged and shall remain in full force and effect.


 


10.          13(d)(i) of the
Rights Agreement is hereby amended to read as follows:


 


(i) consolidate with (other than the Merger),


 


11.          13(d)(ii) of the
Rights Agreement is hereby amended to read as follows:


 


(ii) merge with or into
(other than by the Merger),


 


12.          The Rights Agreement, as amended by this
Amendment, shall remain in full force and effect in accordance with its terms.


 


13.          All the covenants and provisions of this
Amendment by or for the benefit of the Company or the Rights Agent shall bind
and inure to the benefit of their respective successors and assigns hereunder.


 


14.          Nothing in this Amendment shall be construed to
give to any person or corporation other than the Company, the Parent, the Acquisition
Sub, the Rights Agent and the registered holders of the Right Certificates
(and, prior to the Distribution Date, the Common Shares) any legal or equitable
right, remedy or claim under this Amendment; but this Amendment shall be for
the sole and exclusive benefit of the Company, the Parent, the Acquisition Sub,
the Rights Agent and the registered holders of the Right Certificates (and,
prior to the Distribution Date, the Common Shares).


 


15.          If any term, provision, covenant or restriction
of this Amendment is held by a court of competent jurisdiction or other
authority to be invalid, void or unenforceable, the remainder of the terms,
provisions, covenants and restrictions of this Amendment shall remain in full
force and effect and shall in no way be affected, impaired or invalidated.


 


16.          This Amendment shall be deemed to be a contract
made under the laws of the State of Delaware and for all purposes shall be
governed by and construed in accordance with the laws of such State applicable
to contracts to be made and performed entirely within such State.


 


17.          This Amendment may be executed in any number of
counterparts and each of such counterparts shall for all purposes be deemed to
be an original, and all such counterparts shall together constitute but one and
the same instrument.


 


18.          The Company hereby certifies to the Rights Agent
that this Amendment is in compliance with Section 27 of the Rights
Agreement.


 


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IN WITNESS WHEREOF, the parties herein have caused this Amendment to
be duly executed and attested, all as of the date and year first above written.


 


 


	
   

  	
  BEI TECHNOLOGIES, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Charles Crocker

  
	
   

  	
   

  	
  Name: Charles Crocker

  	
   

  
	
   

  	
   

  	
  Title: Chairman and
  Chief Executive

  Officer

  
	
  Attest:

  	
  /s/
  Robert R. Corr

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:
  Robert R. Corr

  	
   

  	
   

  	
   

  
	
   

  	
  Title:
    Secretary

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  AMERICAN STOCK TRANSFER &
  TRUST

  
	
   

  	
  COMPANY

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Herbert J. Lemmer

  
	
   

  	
   

  	
       Name:
  Herbert J. Lemmer

  
	
   

  	
   

  	
       Title:
  Vice President

  
	
  Attest:

  	
  /s/
  Wilbert Myles

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:
  Wilbert Myles

  	
   

  	
   

  	
   

  
	
   

  	
  Title:
  Vice President

  	
   

  	
   

  	
   

  



 


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