Document:

EX-10.2

 

Exhibit 10.2

FIRST AMENDMENT TO PURCHASE AGREEMENT

          FIRST AMENDMENT TO PURCHASE AGREEMENT (this “Amendment”) dated as of January 24, 2007
by and among ROCKWELL AUTOMATION, INC., a corporation organized under the laws of Delaware
(“Seller”), ROCKWELL AUTOMATION OF OHIO, INC., a corporation organized under the laws of
Ohio (“Rockwell Ohio”), ROCKWELL AUTOMATION CANADA CONTROL SYSTEMS, a general partnership
organized under the laws of the province of Ontario, Canada (“Rockwell Canada”), GRUPO
INDUSTRIAS RELIANCE S.A. DE C.V., a company organized under the laws of Mexico (“Rockwell
Mexico”), ROCKWELL AUTOMATION GMBH (formerly known as Rockwell International GmbH), a company
organized under the laws of Germany (“Rockwell Germany”, and together with Rockwell Ohio,
Rockwell Canada and Rockwell Mexico, the “RA Sub Sellers”) and BALDOR ELECTRIC COMPANY, a
corporation organized under the laws of Missouri (“Buyer”).

W  I  T  N  E  S  S  E  T  H  :

          WHEREAS, Seller, the RA Sub Sellers and Buyer are parties to the Purchase Agreement dated as
of November 6, 2006 (the “Agreement”); and

          WHEREAS, Seller, the RA Sub Sellers and Buyer desire to amend the Agreement as set forth
herein;

          NOW, THEREFORE, in consideration of the premises, the mutual agreements hereinafter contained
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Seller, the RA Sub Sellers and Buyer hereby agree as follows, effective as of
November 6, 2006:

          SECTION 1 Capitalized Terms. Capitalized terms used herein, but not otherwise defined
herein, shall have the meanings ascribed to them in the Agreement.

          SECTION 2 Amendment to Section 2.1. Section 2.1 of the Agreement is hereby amended by
deleting therefrom the phrase “, effective as of the Effective Time”.

          SECTION 3 Amendments to Section 3.2(b). Section 3.2(b) of the Agreement is hereby
amended by (a) inserting the phrase “or clauses (v) or (vi) below” in subsection (iv) thereof
immediately following the phrase “any matters or items referred to in clauses (ii) or (iii) above”,
(b) redesignating subsections (v) and (vi) thereof as subsections (vii) and (viii), respectively,
and (c) inserting the following as subsections (v) and (vi) thereof:

 

 

     “(v) the Closing Statement will not include any amounts for liabilities (A) for, or in
connection with or relating to, the Financing or any guarantee thereof, (B) for, or in
connection with or relating to, indebtedness for borrowed money, (C) for, or in connection
with or relating to, termination of any employee after the Closing Time,

(D) incurred by the Acquired Companies after the Closing Time outside of the Ordinary
Course of Business, (E) incurred by the Acquired Companies after the Closing Time in
connection with or relating to the closing of the transactions contemplated hereby or (F)
of, or in connection with or related to, any entities merged into any of the Acquired
Companies after the Closing Time;

     (vi) the Closing Statement will not include REC’s minority share interest in Rockwell
Automation Asia Pacific Limited;”

          SECTION 4 Amendment to Section 4.1. The third sentence of Section 4.1 of the
Agreement is hereby amended by deleting such sentence in its entirety and inserting in lieu thereof
the following:

“The Closing, together with the passage to Buyer of title to the Shares assigned at the
Closing and risk of loss with respect to the Business and the Shares, will be deemed to be
effective at 10:00 a.m., Greenville, South Carolina time, on the Closing Date (the
“Closing Time”) so long as the closing deliveries set forth in Sections 4.2 and 4.3
have been made at or before such time; provided, however, that if the
closing deliveries set forth in Sections 4.2 and 4.3 have not been made at or before such
time, the Closing Time will be the time that the closing deliveries set forth in Sections
4.2 and 4.3 have been made on the Closing Date, except that notwithstanding anything to the
contrary contained herein, for tax and accounting purposes, the Closing will be deemed to
be effective at 5:00 p.m., Greenville, South Carolina time, on the Closing Date (the
“Effective Time”).”

          SECTION 5 Amendment to Section 4.2(i). Section 4.2(i) of the Agreement is hereby
amended by deleting therefrom the phrase “the Effective Time” and inserting in lieu thereof the
phrase “the Closing Time”.

          SECTION 6 Amendment to Section 8.1. The caption to Section 8.1 of the Agreement is
hereby amended by deleting therefrom the phrase “the Effective Time” and inserting in lieu thereof
the phrase “the Closing Date”.

          SECTION 7 Amendment to Section 8.6. Section 8.6 of the Agreement is hereby amended by
deleting the phrase “the Effective Time” in all places it appears therein and inserting in lieu
thereof in all such places the phrase “the Closing Time”.

          SECTION 8 Amendment to Section 8.7. Section 8.7 of the Agreement is hereby amended by
deleting the phrase “the Effective Time” in all places it appears therein and inserting in lieu
thereof in all such places the phrase “the Closing Time”.

          SECTION 9 Amendment to Section 8.8(b)(i). The second sentence of Section 8.8(b)(i) of
the Agreement is hereby amended by deleting therefrom the phrase “the Effective Time” and inserting
in lieu thereof the phrase “the Closing Time”.

          SECTION 10 Amendment to Section 8.10. Section 8.10 of the Agreement is hereby amended
by deleting the phrase “the Effective Time” in all places it appears therein and inserting in lieu
thereof in all such places the phrase “the Closing Time”.

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          SECTION 11 Amendment to Section 8.11. Section 8.11 of the Agreement is hereby amended
by inserting at the end thereof the following:

     ”(d) Anything contained herein to the contrary notwithstanding, if Seller or REC is
unable to effectuate the transfer of REC’s minority share interest in Rockwell Automation
Asia Pacific Limited to Rockwell Ohio prior to Effective Time as contemplated by Item 7 of
Schedule 8.1(a), Buyer will cause REC to effectuate such transfer of REC’s minority share
interest in Rockwell Automation Asia Pacific Limited to Rockwell Ohio as soon as
practicable following the Closing Date (and will assist Seller in obtaining any necessary
consents to effectuate such transfer).”

          SECTION 12 Amendment to Section 8.17(b)(iv). Section 8.17(b)(iv) of the Agreement is
hereby amended by inserting the phrase “or the Closing” immediately following the phrase “expressly
contemplates will survive the Effective Time”.

          SECTION 13 Amendment to Section 8.18. Section 8.18 of the Agreement is hereby amended
by deleting the phrase “the Effective Time” in all places it appears therein and inserting in lieu
thereof in all such places the phrase “the Closing Time”.

          SECTION 14 New Section 8.19. Clause (ii) of Section 8.19 of the Agreement is hereby
amended by deleting therefrom the phrase “(provided that Buyer may substitute therefor policies of
at least the same coverage and amounts containing terms and conditions which are, in the aggregate,
no less advantageous to the insured than the current policies maintained by Seller and its
Affiliates (including the Acquired Companies))” and inserting in lieu thereof the phrase “(provided
that Buyer may substitute therefor policies with coverage of at least $25,000,000 and containing
terms and conditions which are, in the aggregate, no less advantageous to the insured than the
current policies maintained by Seller and its Affiliates (including the Acquired Companies))”.

          SECTION 15 New Section 8.22. The following is hereby inserted as Section 8.22 of the
Agreement:

     “SECTION 8.22 Conduct of Business Between the Closing Time and the Effective
Time. On the Closing Date, between the Closing Time and the Effective Time, Buyer
will, and will cause the Acquired Companies to, (a) conduct the Business solely in the
Ordinary Course of Business, except that the Acquired Companies may enter into agreements
in connection with the Financing and Buyer may merge shell companies holding no assets
(other than minimal cash balances) or liabilities formed by Buyer prior to the Closing Date
with and into REC, REC Holding and REC Technologies, and (b) use Cash only in connection
with the operation of the Business in the Ordinary Course of Business. Without limiting
the generality of the foregoing, on the Closing Date, between the Closing Time and the
Effective Time, Buyer will not, and will cause the Acquired Companies not to, use Cash (x)
to pay dividends or make distributions or payments to Buyer or any of its Affiliates, (y)
in connection with or relating to the closing of the transactions contemplated hereby or
(z) in connection with or relating to the Financing or any guarantee thereof or any merger
of any entities into any Acquired Companies.”

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          SECTION 16 Amendment to Section 9.1. Clause (ii) of the first sentence of Section 9.1
of the Agreement is hereby amended by deleting therefrom the phrase “(which Schedule 9.1 will be
deemed to be amended to reflect the deletion of any such employees whose employment terminates
prior to the Effective Time and the addition of any employees of Seller and its Affiliates (other
than the Acquired Companies) who become engaged primarily in the Business with the consent of Buyer
(which consent will not be unreasonably withheld, conditioned or delayed) between the date hereof
and the Effective Time)” and inserting in lieu thereof the phrase “(which Schedule 9.1 will be
deemed to be amended to reflect the deletion of any such employees whose employment terminates
prior to the Closing Time and the addition of any employees of Seller and its Affiliates (other
than the Acquired Companies) who become engaged primarily in the Business with the consent of Buyer
(which consent will not be unreasonably withheld, conditioned or delayed) between the date hereof
and the Closing Time)”.

          SECTION 17 Amendment to Section 13.8(a). The last sentence of Section 13.8(a) of the
Agreement is hereby amended by deleting therefrom the phrase “the Effective Time” and inserting in
lieu thereof the phrase “the Closing Time”.

          SECTION 18 Amendments to Schedule 1. Schedule 1 to the Agreement is hereby amended by
(a) deleting the phrase “items 96 through 106” in the definition of “Retention Bonus
Arrangements” and inserting in lieu thereof the phrase “items 96 through 108” and (b) deleting
the phrase “the Effective Time” in all places it appears in the definitions of “Asbestos
Liabilities” and “Special Indemnity Costs” and inserting in lieu thereof in all such
places the phrase “the Closing Time”.

          SECTION 19 Amendment to Schedule 5.7. Schedule 5.7 to the Agreement is hereby amended
by deleting such Schedule 5.7 in its entirety and inserting in lieu thereof Schedule 5.7 attached
hereto.

          SECTION 20 Amendment to Schedule 5.18. Schedule 5.18 to the Agreement is hereby
amended by deleting such Schedule 5.18 in its entirety and inserting in lieu thereof Schedule 5.18
attached hereto.

          SECTION 21 Reference to and Effect on the Agreement.

          (a) Each reference in the Agreement to “this Agreement”, “hereunder”, “hereof”,
“herein”, or
words of like import shall mean and be a reference to the Agreement as amended hereby. No
reference to this Amendment need be made in any instrument or document at any time referring to the
Agreement, a reference to the Agreement in any of such to be deemed to be a reference to the
Agreement as amended hereby.

          (b) Except as expressly amended by this Amendment, the Agreement shall remain in full force
and effect.

          SECTION 22 Counterparts. This Amendment may be executed in one or more counterparts,
each of which will be deemed an original, but all of which together will constitute a single
instrument.

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          SECTION 23 Governing Law. This Amendment will be governed by and construed in
accordance with the internal laws of the State of New York applicable to contracts made and to be
performed entirely within such State, without regard to the conflicts of law principles of such
State.

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

	 	 	 	 	 
	 	ROCKWELL AUTOMATION, INC.

 	 
	 	By:  	/s/ Rondi Rohr-Dralle
 	 
	 	 	Name:  	Rondi Rohr-Dralle 	 
	 	 	Title:  	Vice President, Corporate Development 	 
	 

	 	 	 	 	 
	 	ROCKWELL AUTOMATION OF OHIO, INC.

 	 
	 	By:  	/s/ Steven A. Eisenbrown
 	 
	 	 	Name:  	Steven A. Eisenbrown 	 
	 	 	Title:  	President 	 
	 

	 	 	 	 	 
	 	ROCKWELL AUTOMATION CANADA
CONTROL SYSTEMS

 	 
	 	By:  	/s/ Charles A. Cipolla
 	 
	 	 	Name:  	Charles A. Cipolla 	 
	 	 	Title:  	President 	 
	 

	 	 	 	 	 
	 	GRUPO INDUSTRIAS RELIANCE S.A. de C.V.

 	 
	 	By:  	/s/ Douglas M. Hagerman
 	 
	 	 	Name:  	Douglas M. Hagerman 	 
	 	 	Title:  	Authorized Representative 	 
	 

	 	 	 	 	 
	 	ROCKWELL AUTOMATION GMBH

 	 
	 	By:  	/s/ Timothy C. Oliver
 	 
	 	 	Name:  	Timothy C. Oliver 	 
	 	 	Title:  	Director 	 

 

 

	 	 	 	 	 

[Signature Page Continued]

	 	 	 	 	 
	 	BALDOR ELECTRIC COMPANY 

 	 
	 	By:  	/s/ Ed Ralston
 	 
	 	 	Name:  	Ed Ralston 	 
	 	 	Title:  	Vice President, Finance and TreasurerEX-10.1

 

Exhibit 10.1

ADDENDUM NO. 1

to the

EXCESS OF LOSS RETROCESSION AGREEMENT

BY AND BETWEEN

PLATINUM UNDERWRITERS BERMUDA, LTD.

(RETROCEDANT)

and

PLATINUM UNDERWRITERS REINSURANCE, INC.

(RETROCESSIONAIRE)

DATED AS OF April 1, 2006

     IT IS HEREBY MUTUALLY AGREED that effective February 15, 2007, this Excess of Loss Retrocession
Agreement (“Agreement”), made by and between Platinum Underwriters Bermuda, Ltd., a
Bermuda-domiciled insurance company (the “Retrocedant”), and Platinum Underwriters Reinsurance,
Inc. a Maryland-domiciled insurance company (the “Retrocessionaire”), is amended as follows:

ARTICLE 3 — EXCLUSIONS

     The following Exclusion Clauses are attached to and form part of this Agreement:

	 	1.	 	Nuclear Energy Risks Exclusion Clause (Reinsurance) (Worldwide Excluding U.S.A.
& Canada) (Japanese Amendment)
	 
	 	2.	 	Pools, Associations, and Syndicates.
	 
	 	3.	 	War Risk Exclusion Clause.
	 
	 	4.	 	Insolvency Funds Exclusion Clause.
	 
	 	5.	 	Losses emanating from the Quota Share Retrocession Agreement by and between
Platinum Underwriters Bermuda, Ltd. and Platinum Underwriters Reinsurance, Inc.
	 
	 	6.	 	Any losses in any of the European countries set forth in Article 4 below that
occurred prior to the effective date of this Addendum.
	 
	 	7.	 	Losses caused by earthquake, earthquake fire and river floods in any of the
European countries set forth in Article 4 below. Flood losses caused by windstorms are
covered by this Agreement.

 

 

ARTICLE 4 — TERRITORY

Coverage applies within the territorial limits of Japan and the following European countries:
Austria, Belgium, Denmark, France, Germany, Ireland, Luxembourg, Netherlands, Sweden, United
Kingdom, Norway and Switzerland.

ARTICLE 8  — PREMIUM

The premium for this Agreement shall be a flat premium of $1,300,000 payable in two equal
installments on April 1, 2006 and October 1, 2006, plus an additional installment of $1,300,000
payable on March 1, 2007 as consideration for the European coverage provided on the effective date
of this Addendum. The total premium due with respect to this Agreement is $2,600,000.

     This Agreement and all amendments thereto shall be governed by the laws of the State of New York,
exclusive of its rules with respect to conflicts of laws.

     All other terms and conditions of this Agreement shall remain unchanged.

     IN WITNESS WHEREOF, the parties hereto have caused this Addendum to be executed by their duly
authorized representatives on the dates set forth below.

	 	 	 	 	 
	 	 	Platinum Underwriters Bermuda, Ltd.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Les Waters
	 

	 	 	 	 
	 

	 	 	 	Name: Les Waters
	 

	 	 	 	Title: Vice President
	 

	 	 	 	Date: March 16, 2007
	 
	 	 	 	 
	 	 	Platinum Underwriters Reinsurance, Inc.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Kevin Marine
	 

	 	 	 	 
	 

	 	 	 	Name: Kevin Marine
	 

	 	 	 	Title: Senior Vice President
	 

	 	 	 	Date: March 13, 2007

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