Document:

exhibit10_2.htm

    FRANKLIN
ELECTRIC CO., INC.

     

    DEFERRED
COMPENSATION PLAN

     

    Effective
December 12, 2008

     

    
      
        
          December
2008

        

         

      

      
         

        
          

        

      

      
         

      

    

    INTRODUCTION

     

    This
Franklin Electric Co., Inc. ("Franklin") Deferred Compensation Plan (the "Plan")
is hereby established, effective December 12, 2008, to allow eligible
executive officers of Franklin and certain affiliates to defer receipt of
portions of their base salary and bonus awards.  The Plan is unfunded
and is maintained by Franklin primarily for the purpose of providing deferred
compensation for a select group of management or highly-compensated
employees.

     

    ARTICLE
1.

     

    

     

    DEFINITIONS

     

    
      	
              1.1.  

            	
              "Account" shall
      mean the bookkeeping account maintained for each Participant to record his
      Salary Deferrals, and the amount of any Awards he has elected to defer under this
      Plan, as adjusted pursuant
      to Article 5.  

            

    

     

    
      	
              1.2.  

            	
              "Administrator"
      shall mean Franklin.  The duties of the Administrator shall be
      performed by the Committee.

            

    

     

    
      	
              1.3.  

            	
              "Affiliated
      Company" shall mean Franklin and any company or corporation
      directly or indirectly controlled by
Franklin.

            

    

     

    
      	
              1.4.  

            	
              "Award" shall
      mean the amount awarded to a Participant as a bonus under any bonus
      program adopted by Franklin from time to
time.

            

    

     

    
      	
              1.5.  

            	
              "Award Deferral
      Agreement" shall mean a Deferral Agreement filed in accordance with
      the award deferral program described in Article
  3.

            

    

     

    
      	
              1.6.  

            	
              "Board" shall
      mean the board of directors of
Franklin.

            

    

     

    
      	
              1.7.  

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

            

    

     

    
      	
              1.8.  

            	
              "Committee"
      shall mean the Board or a committee designated by the
    Board.

            

    

     

    
      	
              1.9.  

            	
              "Compensation"
      shall mean the base compensation and Award payable to an Eligible
      Executive.

            

    

     

    
      	
              1.10.  

            	
              "Deferral
      Agreement" shall mean either an Award Deferral Agreement or a
      Salary Deferral Agreement, or both if the context so
      requires.  A Deferral Agreement shall be a completed agreement
      between an Eligible Executive and a Participating Company of which he is
      an employee under which the Eligible Executive agrees to defer an Award or
      make Salary Deferrals under the Plan, as the case may be.  The
      Deferral Agreement shall be on a form prescribed by the Administrator and
      shall include any amendments, attachments or
  appendices.

            

    

     

    
      	
              1.11.  

            	
              "Distribution
      Option(s)" shall mean, with respect to an Account under the Plan,
      the election by the Participant of the form of payment Distribution Option
      elections made on the initial Deferral
  Agreement.

            

    

     

    
      	
              1.12.  

            	
              "Effective Date"
      shall mean December 12, 2008 or, with respect to the Eligible
      Executives of a company or corporation that adopts the Plan, the date such
      company or corporation becomes a Participating
  Company.

            

    

     

    
      	
              1.13.  

            	
              "Eligible
      Executive" shall mean an executive officer of a Participating
      Company who is so notified of his eligibility in writing by the
      Administrator, at any time after the Administrator has designated any
      other executive officer or former executive officer of an Affiliated
      Company as an Eligible Executive; provided, however, that only those
      executive officers or former executive officers considered to be a select
      group of management or highly compensated may be designated as Eligible
      Executives under this Plan.  Any change to the eligibility must
      be pre-approved by the Management Organization and Compensation Committee
      of the Board.

            

    

     

    
      	
              1.14.  

            	
              "Employment
      Termination" shall mean, with respect to a Participant, the
      termination of the Participant's employment for any reason by the
      Participating Company that had been employing the Participant and all
      other Affiliated Companies; provided, however, that no event shall
      constitute an "Employment Termination" under this Plan if it does not
      constitute a "separation from service" within the meaning of Code section
      409A(a)(2)(A)(i).

            

    

     

    
      	
              1.15.  

            	
              "Participant"
      shall mean, except as otherwise provided in Article 2, each Eligible
      Executive who has executed a Deferral Agreement as described in Section
      2.1.

            

    

     

    
      	
              1.16.  

            	
              "Participating
      Company" shall mean Franklin and any company or corporation
      directly or indirectly controlled by Franklin which the Board designates
      for participation in the Plan in accordance with Section
      8.5(b).

            

    

     

    
      	
              1.17.  

            	
              "Plan" shall
      mean the Franklin Electric Co., Inc. Deferred Compensation Plan, as
      amended from time to time.

            

    

     

    
      	
              1.18.  

            	
              "Plan
      Year"  shall mean the Effective Date through December 31,
      2008 and, thereafter, the calendar
year.

            

    

     

    
      	
              1.19.  

            	
              "Salary
      Deferrals" shall mean the amounts credited to a Participant's
      Account under Section 4.3.

            

    

     

    
      	
              1.20.  

            	
              "Salary Deferral
      Agreement" shall mean a completed agreement between an Eligible
      Executive and a Participating Company of which he is an employee under
      which the Eligible Executive agrees to make Salary Deferrals under the
      Plan in accordance with the salary-deferral program described in Article
      4.  The Salary Deferral Agreement shall be on a form prescribed
      by the Administrator and shall include any amendments, attachments or
      appendices.

            

    

     

    
      	
              1.21.  

            	
              "Trust" shall
      mean the trust, if any, established to hold assets of the Plan and which
      substantially conforms to the terms of the Internal Revenue Service model
      trust as described in Revenue Procedure 92-64, 1992-2 C.B.
      422.

            

    

     

    
      	
              1.22.  

            	
              "Unforeseeable
      Emergency" shall mean a severe financial hardship as defined in
      Section 6.3 of this Plan.

            

    

     

    
      	
              1.23.  

            	
              "Valuation Date"
      shall mean each business day on which the securities markets are
      open.

            

    

     

    ARTICLE
2.

     

    

     

    MEMBERSHIP AND DEFERRAL
AGREEMENTS

     

    
      	
              2.1.  

            	
              In
      General.

            

    

     

    
      	
              (a)  

            	
              An
      Eligible Executive shall become a
      Participant as of the date he files his initial
      Deferral Agreement with the Administrator.  However, such
      Deferral Agreement shall be effective for purposes of deferring an Award
      or making Salary Deferrals only as provided in Articles 3 and
      4.

            

    

     

    
      	
              (b)  

            	
              A
      Deferral Agreement shall be in writing and properly completed on a form
      approved by the Administrator, which shall be the sole judge of the proper
      completion thereof.  Except as provided in Sections 3 or 4, such
      Agreement shall provide for the deferral of an Award or for Salary
      Deferrals, shall specify the Distribution Option applicable to the
      deferrals, and may include such other provisions as the Administrator
      deems appropriate.  A Deferral Agreement and Distribution Option
      elected shall not be revoked or modified with respect to the allocation of
      prior deferrals except pursuant to Section 2.2 or Article
    6.

            

    

     

    
      	
              (c)  

            	
              As
      a condition of membership the Administrator may require such other
      information as it deems
appropriate.

            

    

     

    
      	
              2.2.  

            	
              Modification of
      Deferral Agreement.

            

    

     

    
      	
              (a)  

            	
              A
      Participant may elect to change, modify or revoke a Deferral Agreement as
      follow:

            

    

     

    
      	
              (i)  

            	
              With
      respect to an Award attributable to a Participant's service for a calendar
      year, the Participant may change the amount he elects to defer by
      completing and filing an Award Deferral Agreement prior to June 30 of that
      calendar year, as provided in Article
3.

            

    

     

    
      	
              (ii)  

            	
              A
      Participant may change the rate of his future Salary Deferrals, or suspend
      his Salary Deferrals prior to the beginning of a calendar year for that
      calendar year or on account of Unforeseeable
  Emergency.

            

    

     

    
      	
              2.3.  

            	
              Employment
      Termination:  Re-employment.

            

    

     

    
      	
              (a)  

            	
              A
      Participant's deferrals shall cease, subject to Section 2.4, upon a
      Participant's Employment
Termination.

            

    

     

    
      	
              (b)  

            	
              Upon
      re-employment as an Eligible Executive, a former Participant may become a
      Participant again as follows:

            

    

     

    
      	
              (i)  

            	
              in
      the case of a former Participant who prior to re-employment received the
      balance in his Account, by executing a Deferral Agreement under Section
      2.1 as though for all purposes of the Plan the Affiliated Companies had
      never employed the former
Participant;

            

    

     

    
      	
              (ii)  

            	
              in
      the case of a former Participant who prior to re-employment did not
      receive the balance in his Account, by executing a Deferral Agreement
      under Section 2.1; provided his Distribution Options and beneficiary
      designation with respect to the balance in his Account shall remain in
      effect.

            

    

     

    
      	
              2.4.  

            	
              Change in
      Status.

            

    

     

    
      	
              (a)  

            	
              In
      the event that a Participant ceases to be an Eligible Executive with
      respect to Salary Deferrals but continues to be employed by an Affiliated
      Company, his Salary Deferrals shall thereupon be suspended until such time
      as he shall once again become an Eligible Executive.  All other
      provisions of his Salary Deferral Agreement shall remain in force and he
      shall continue to be a Participant of the
Plan.

            

    

     

    
      	
              (b)  

            	
              In
      the event that a Participant ceases to be an Eligible Executive with
      respect to the deferral of Awards but continues to be employed by an
      Affiliated Company, he shall continue to be a Participant of the Plan but
      shall not be eligible to defer any portion of any future Awards until such
      time as he shall once again become an Eligible
  Executive.

            

    

     

    ARTICLE
3.

     

    

     

    AWARD DEFERRAL
PROGRAM

     

    
      	
              3.1.  

            	
              Filing
      Requirements.

            

    

     

    
      	
              (a)  

            	
              (i)  With
      respect to an Award for services rendered for a Plan Year or a period of
      years (in the case of a long-term Award), an Eligible Executive may elect
      up to 90% of that Award.  Such election shall be made by filing
      an Award Deferral Agreement with the Administrator on or before the close
      of business on June 30 of that calendar year, or, in the case of a
      long-term Award, by June 30 of the initial year.  In the
      event that June 30 does not fall on a weekday, such filing must be made by
      the close of business on the last prior business
  day.

            

    

     

    
      	
               
      

            	
              (ii)  Notwithstanding
      the foregoing, for the initial Plan Year, an Eligible Executive, pursuant
      to transition relief rules issued by the Internal Revenue Service, may
      elect to defer an Award, including a long-term Award, payable in 2009 by
      filing an Award Deferral Agreement within 20 days of the Effective Date
      (but in no event later than December 31,
2008.)

            

    

     

    
      	
              (b)  

            	
              With
      respect to an Award identified in Section 1.6, an Eligible Executive's
      election to defer a portion of his Award shall be
      effective on the last day that such deferral may be elected under Section
      3.1(a) or 3.1(b) and shall be effective only for the Award in
      question.  An Eligible Executive may not revoke or change his
      election to defer all or a portion of his Award at any time after the date
      the election becomes effective, as described in the preceding
      sentence.

            

    

     

    
      	
              3.2.  

            	
              Amount of
      Deferral.

            

    

     

    
      	
              (a)  

            	
              The
      maximum Award deferred shall be 90% of any Award, and must be in 10%
      increments.

            

    

     

    
      	
              (b)  

            	
              The
      minimum amount which an Eligible Executive may defer in any year shall be
      the lesser of $5,000 or the maximum amount determined under Section 3.2(a)
      above.  If an Eligible Executive elects to defer less than this
      amount, his election shall not be
effective.

            

    

     

    
      	
              3.3.  

            	
              Crediting to
      Account.  The amount of Award which an Eligible Executive
      has elected to defer for a calendar year shall be credited to his Account
      as of the Valuation Date coincident with or next following the date the
      Award would have been paid to the Eligible
  Executive.

            

    

     

    ARTICLE
4.

     

    

     

    SALARY DEFERRAL
PROGRAM

     

    
      	
              4.1.  

            	
              Filing
      Requirements.

            

    

     

    
      	
              (a)  

            	
              Effective
      as of January 1, 2009, an individual who becomes an Eligible Executive on
      or after the Effective Date may file a Salary Deferral Agreement with the
      Administrator within thirty (30) days after he becomes an Eligible
      Executive, in such manner as the Administrator may
    prescribe.

            

    

     

    
      	
              (b)  

            	
              An
      Eligible Executive who fails to file a Salary Deferral Agreement with the
      Administrator as provided in Section 4.1(b) may file a Salary Deferral
      Agreement during any December for deferrals of salary otherwise payable
      for services during in the following calendar
  year.

            

    

     

    
      	
              4.2.  

            	
              Salary Deferral
      Agreement.  An Eligible Executive's Salary Deferral
      Agreement shall authorize a reduction in his base pay with respect to his
      Salary Deferrals under the Plan.  The Agreement shall be
      effective for payroll periods beginning on or after the later of (a) the
      Effective Date; or (b) the first day of the month following the date
      the Salary Deferral Agreement is filed with the Administrator in
      accordance with Section 4.1.  Paychecks applicable to those
      payroll periods shall be reduced
accordingly.

            

    

     

    
      	
              4.3.  

            	
              Amount of Salary
      Deferrals.  Effective as soon as practicable after each
      pay date following the effective date of an Eligible Executive's Salary
      Deferral Agreement, his Accounts shall be credited with an amount of
      Salary Deferral, if any, for each payroll period, as he elects in his
      Salary Deferral Agreement. The maximum percentage deferral is 50%, and
      must be made in 10% increments.

            

    

     

    
      	
              4.4.  

            	
              Changing Salary
      Deferrals.

            

    

     

    
      	
              (a)  

            	
              An
      Eligible Executive's election on his Salary Deferral Agreement of the rate
      at which he authorizes Salary Deferrals under the Plan shall remain in
      effect in subsequent calendar years unless he files with the Administrator
      an amendment to his Salary Deferral Agreement modifying or revoking such
      election.  The amendment shall be filed by December 31 and shall
      be effective for payroll periods beginning on or after the following
      January 1.

            

    

     

    
      	
              (b)  

            	
              Notwithstanding
      Section 4.4(a), an Eligible Executive may, in the event of an
      Unforeseeable Emergency, request a suspension of his Salary Deferrals
      under the Plan.  The request shall be made in a time and manner
      determined by the Administrator, and shall be effective as of such date as
      the Administrator prescribes.  The Eligible Executive may apply
      to the Administrator to resume his Salary Deferrals with respect to
      payroll periods beginning on or after the January 1 following the date the
      Unforeseeable Emergency no longer
exists.

            

    

     

    ARTICLE
5.

     

    

     

    MAINTENANCE OF
ACCOUNTS

     

    
      	
              5.1.  

            	
              Accounts
      Generally.

            

    

     

    The
Administrator shall credit Deferrals to an Account, which shall be a record
keeper entry, adjusted for earnings or losses, pursuant to Section
5.2.

     

    
      	
              5.2.  

            	
              Adjustment of Account
      for Earnings/Losses.

            

    

     

    
      	
              (a)  

            	
              As
      of each Valuation Date, a Participant's Account shall be credited or
      debited with the amount of earnings or losses with which such Account
      would have been credited or debited, assuming it had been invested in one
      or more investment funds, or earned the rate of return of one or more
      indices of investment performance based on those funds actually used for
      the Franklin 401(k) Plan and set forth in Schedule 5.2, as amended
      from time to time, and elected by the Participant or former Participant,
      for purposes of measuring the investment performance of his
      Account.

            

    

     

    
      	
              (b)  

            	
              The
      designation of any such investment funds or indices shall not require the
      Affiliated Companies to invest or earmark their general assets in any
      specific manner.

            

    

     

    
      	
              5.3.  

            	
              Investment Performance
      Elections.  Each Participant and, if applicable, former
      Participant, shall file an initial investment election with the
      Administrator with respect to the investment of his Account within such
      time period and on such written form or identity-secured internet or
      telephonic means as the Administrator may prescribe.  The
      election shall designate the investment fund or funds or index or indices
      of investment performance which shall be used to measure the investment
      performance of the Participant's
Account.

            

    

     

    
      	
              5.4.  

            	
              Changing Investment
      Elections.  As of any Valuation Date, a Participant may
      change his election in Section 5.3 with respect to his future Award and
      Salary Deferrals or may reallocate the current balance of his Account,
      thereby changing the investment fund or funds or index or indices of
      investment performance used to measure the future investment performance
      of his existing Account balance, by filing an appropriate written form or
      through identity-secured internet or telephonic means as approved by the
      Administrator from time to time.

            

    

     

    
      	
              5.5.  

            	
              Vesting of
      Account.  Each Participant shall be fully vested in his
      Account.

            

    

     

    
      	
              5.6.  

            	
              Individual Account
      Records.  The Administrator shall maintain, or cause to
      be maintained, records showing the individual balances of his
      Account.  At least once a year, each Participant and, if
      applicable, former Participant shall be furnished with a statement setting
      forth she value of his Account.

            

    

     

    ARTICLE
6.

     

    

     

    PAYMENT OF
BENEFITS

     

    
      	
              6.1.  

            	
              Commencement of
      Payment.

            

    

     

    
      	
              (a)  

            	
              Except
      as provided in Section 6.3, the distribution of the Participant's or
      former Participant's Account shall commence, pursuant to Section 6.2, on
      or after the occurrence of the Participant's Employment
      Termination.

            

    

     

    
      	
              (b)  

            	
              At
      any time that Franklin or a Participating Company is publicly traded on an
      established securities market or otherwise, any Participant employed by
      that Participating Company who is a "key employee" within the meaning of
      Code section 416(i) (without regard to paragraph (5) of that subsection)
      shall not receive a distribution on account of Employment Termination
      before six months after the date of the Participant's Employment
      Termination.

            

    

     

    
      	
              6.2.  

            	
              Method of
      Payment.  Each of a Participant's or former Participant's
      Account shall be distributed to him, or in the event of his death to his
      Beneficiary, in a cash single sum payment as soon as administratively
      practicable following the 1st of the month following the date the
      Participant the distributable event.  Notwithstanding the
      foregoing, a Participant may make a Distribution Option election to
      receive distribution of his Account in semi-annual installments over a
      period not to exceed ten (10) years.  Installments shall be
      determined as of each June 30 and December 31 and shall be paid as soon as
      administratively practicable thereafter.  Installments shall
      commence as of the July 1 or January 1 coincident with or next following
      the date the Participant incurs the distributable event elected as a
      Distribution Option under Section 6.1, or as soon as administratively
      practicable thereafter.  The amount of each installment shall
      equal the balance in the Account as of the Valuation Date of
      determination, divided by the number of remaining installments (including
      the installment being determined).  The Distribution Option
      election shall be irrevocable.

            

    

     

    
      	
              6.3.  

            	
              Hardship
      Withdrawal.

            

    

     

    
      	
              (a)  

            	
              While
      employed by the Participating Companies, a Participant or former
      Participant may, in the event of an Unforeseeable Emergency, as defined
      below, request a withdrawal from his Account.  The request shall
      be made in a time and manner determined by the Administrator, shall not be
      for a greater amount than the amount reasonably needed to satisfy the
      emergency need, plus amounts necessary to pay taxes reasonably anticipated
      as a result of the distribution, and shall be subject to approval by the
      Administrator.

            

    

     

    
      	
              (b)  

            	
              Unforeseeable
      Emergency shall be determined by the Administrator in its sole discretion,
      and shall mean severe financial hardship to the Participant resulting from
      a sudden and unexpected illness or accident of the Participant, the
      Participant's spouse, or of a dependent (as defined in Section 152(a) of
      the Code), loss of the Participant's property due to casualty, or other
      similar extraordinary and unforeseeable circumstances arising as a result
      of events beyond the control of the Participant.  The
      circumstances that will constitute an Unforeseeable Emergency will depend
      upon the facts of each case, but, in any case, payment may not be made to
      the extent that such hardship is or may be
  relieved:

            

    

     

    
      	
              (i)  

            	
              Through
      reimbursement or compensation by insurance or otherwise;
  or

            

    

     

    
      	
              (ii)  

            	
              By
      liquidation of the Participants assets, to the extent the liquidation of
      such assets would not itself cause severe financial
    hardship.

            

    

     

    Examples
of what are not considered to be Unforeseeable Emergencies include the need to
send a Participant's child to college or the desire to purchase a
home.

     

    
      	
              6.4.  

            	
              Designation of
      Beneficiary.  A Participant or former Participant may, in
      a time and manner determined by the Administrator, designate a beneficiary
      and one or more contingent beneficiaries (which may include the
      Participant's or former Participant's estate) to receive any benefits
      which may be payable under this Plan upon his death.  If the
      Participant or former Participant fails to designate a beneficiary or
      contingent beneficiary, or if the beneficiary and the contingent
      beneficiaries fail to survive the Participant or former Participant, such
      benefits shall be paid to the Participant's or former Participant's
      estate.  A Participant or former Participant may revoke or
      change any designation made under this Section 6.4 in a time and
      manner determined by the
Administrator.

            

    

     

    
      	
              6.5.  

            	
              Status of Account
      Pending Distribution.  Pending distribution, a former
      Participant's Account shall continue to be credited with earnings and
      losses as provided in Section 5.2.  The former Participant shall
      be entitled to change his investment elections under Section 5.3 or apply
      for hardship withdrawals under Section 6.3 to the same extent as if he
      were a Participant of the Plan.

            

    

     

    
      	
              6.6.  

            	
              Installments and
      Withdrawals Pro-Rata.  In the event of an installment
      payment or hardship withdrawal, such payment or withdrawal shall be made
      on a pro-rata basis from the portions of the Participant's or former
      Participant's existing Account balance which are subject to different
      measures of investment performance.

            

    

     

    ARTICLE
7.

     

    

     

    AMENDMENT OR
TERMINATION

     

    
      	
              7.1.  

            	
              Right to
      Terminate.  The Board may, in its sole discretion,
      terminate this Plan and the related Deferral Agreements at any
      time.  To the extent consistent with Section 8.7, each
      Participant, former Participant and beneficiary shall, in that event,
      receive a single sum payment equal to the balance in his
      Account.  In that event, the single sum payment shall be made as
      soon as practicable following the date the Plan is terminated and shall be
      in lieu of any other benefit which may be payable to the Participant,
      former Participant or beneficiary under this Plan.  To the
      extent such single sum payments would violate Section 8.7; those benefits
      shall be paid according the Deferral Agreements in effect immediately
      before the Plan termination.

            

    

     

    
      	
              7.2.  

            	
              Right to
      Amend.  The Board may, in its sole discretion, amend this
      Plan and the related Deferral Agreements on thirty (30) days' prior notice
      to the Participants and, where applicable, former
      Participants.  If any amendment to this Plan or to the Deferral
      Agreements shall adversely affect the rights of a Participant or former
      Participant, such individual must consent in writing to such amendment
      prior to its effective date.  Notwithstanding the foregoing, the
      change in any investment funds or investment index under Section 5.1 or
      the restriction of future deferrals under the salary deferral program or
      award deferral program shall not be deemed to adversely affect any
      Participant's or former Participant's
rights.

            

    

     

    
      	
              7.3.  

            	
              Uniform
      Action.  Notwithstanding anything in the Plan to the
      contrary, any action to amend or terminate the Plan or the Deferral
      Agreements must be taken in a uniform and nondiscriminatory
      manner.

            

    

     

    ARTICLE
8.

     

    

     

    GENERAL
PROVISIONS

     

    
      	
              8.1.  

            	
              No
      Funding.  Nothing contained in this Plan or in a Deferral
      Agreement shall cause this Plan to be a funded retirement
      plan.  Neither a Participant, former Participant, his
      beneficiary, contingent beneficiaries, heirs or personal representatives
      shall have any right, title or interest in or to any funds of the trust or
      the Affiliated Companies on account of this Plan or on account of having
      completed a Deferral Agreement.  The assets held in any trust
      shall be subject to the claims of creditors of Franklin.  Each
      Participant or former Participant shall have the status of a general
      unsecured creditor of the Affiliated Companies and this Plan constitutes a
      mere promise by the Affiliated Companies to make benefit payments in the
      future.

            

    

     

    
      	
              8.2.  

            	
              No Contract of
      Employment.  The existence of this Plan or of a Deferral
      Agreement does not constitute a contract for continued employment between
      an Eligible Executive or a Participant and an Affiliated Company. The
      Affiliated Companies reserve the right to modify Eligible Executive's or
      Participant's remuneration and to terminate an Eligible Executive or a
      Participant for any reason and at any time, notwithstanding the existence
      of this Plan or of a Deferral
Agreement.

            

    

     

    
      	
              8.3.  

            	
              Withholding
      Taxes.  All payments under this Plan and all amounts
      credited to Accounts hereunder shall be net (unless withholdings are, with
      the Administrator's consent, netted from other income) of an amount
      sufficient to satisfy any federal, state or local income and employment
      tax withholding requirements.

            

    

     

    
      	
              8.4.  

            	
              Non-alienation.  The
      right to receive any benefit under this Plan may not be transferred,
      assigned, pledged or encumbered by a Participant, former Participant,
      beneficiary or contingent beneficiary in any manner and any attempt to do
      so shall be void.  No such benefit shall be subject to
      garnishment, attachment or other legal or equitable process without the
      prior written consent of the Affiliated
  Companies.

            

    

     

    
      	
              8.5.  

            	
              Administration.

            

    

     

    
      	
              (a)  

            	
              This
      Plan shall be administered by the Committee.  Certain
      administrative functions, as set forth in the Plan, shall be the
      responsibility of the Administrator.  The Committee shall
      interpret the Plan with discretionary authority, establish regulations to
      further the purposes of the Plan and take any other action necessary to
      the proper operation of the Plan in accordance with guidelines established
      by the Committee or, if there are no such guidelines, consistent with
      furthering the purpose of the Plan.

            

    

     

    
      	
              (b)  

            	
              The
      Board, in its sole discretion and upon such terms as it may prescribe, may
      permit any company or corporation directly or indirectly controlled by
      Franklin to participate in the
Plan.

            

    

     

    
      	
              (c)  

            	
              Prior
      to paying any benefit under this Plan, the Administrator or the Committee
      may require the Participant, former Participant, beneficiary or contingent
      beneficiary to provide such information or material as they, in their sole
      discretion, shall deem necessary for it to make any determination it may
      be required to make under this Plan.  The Committee or
      Administrator may withhold payment of any benefit under this Plan until it
      receives all such information and material and is reasonably satisfied of
      its correctness and genuineness.

            

    

     

    
      	
              (d)  

            	
              Subject
      to applicable law, any interpretation of the provisions of the Plan and
      any decision on any matter within the discretion of the Committee made by
      the Committee in good faith shall be binding on all persons.  A
      misstatement or other mistake of fact shall be corrected when it becomes
      known and the Committee shall make such adjustment on account thereof as
      the Committee considers equitable and
  practicable.

            

    

     

    
      	
              (e)  

            	
              If
      a claim for benefits made by a Participant or his beneficiary is denied,
      the Administrator shall within ninety (90) days (or one hundred eighty
      (180) days if special circumstances require an extension of time) after
      the claim is made furnish the person making the claim with a written
      notice specifying the reasons for the denial.  Such notice shall
      also refer to the pertinent Plan provisions on which the denial is based,
      describe any additional material or information necessary for properly
      completing the claim and explain why such material or information is
      necessary, and explain the Plan's claim review procedures.  If
      requested in writing, the Committee shall afford each claimant whose claim
      has been denied a full and fair review of the Administrator's decision
      and, within sixty (60) days (one hundred twenty (120) days if special
      circumstances require additional time) of the request for reconsideration
      of the denied claim, the Committee shall notify the claimant in writing of
      the Committee's final decision.

            

    

     

    
      	
              8.6.  

            	
              Construction.

            

    

     

    
      	
              (a)  

            	
              The
      Plan is intended to constitute an unfunded deferred compensation
      arrangement for a select group of management or highly compensated
      employees and a rights hereunder shall, to the extent not preempted by
      federal law, be governed by and construed in accordance with the laws of
      the State of Indiana without giving effect to applicable principles of
      conflicts of law to the extent that the application of the law of another
      jurisdiction would be required
thereby.

            

    

     

    
      	
              (b)  

            	
              The
      masculine pronoun shall mean the feminine wherever
      appropriate.

            

    

     

    
      	
              (c)  

            	
              The
      captions in this Plan document are inserted as a matter of convenience and
      shall not affect the construction of the
Plan.

            

    

     

    
      	
              8.7.  

            	
              Code Section 409A
      Standards.  This Plan, and all Deferral Agreements
      pursuant to this Plan, shall be affected, interpreted, and applied in a
      manner consistent with the standards for nonqualified deferred
      compensation plans established by Code section 409A and its interpretive
      regulations (the "Section 409A Standards"). To the extent that any terms
      of the Plan or a Deferral Agreement would subject any Participant to gross
      income inclusion, interest, or additional tax pursuant to Code section
      409A, those terms are to that extent superseded by the applicable Section
      409A Standards.

            

    

     

    

     

    This Plan
adopted by Franklin as of the Effective Date, and signed by an authorized
officer hereof as of its ratification by the Board on December 12,
2008.

     

    By:                                                              

    

    Title:                                                                

    

    
      
        
          December 2008
                                                              
--

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
5.2

    FRANKLIN
ELECTRIC CO., INC.

    DEFERRED
COMPENSATION PLAN

    

    Pursuant
to Section 5.2 of the Plan, the investment benchmarks offered, as of
December 12, 2008, are:

     

    1.           Wells
Fargo Stable Return Fund

    2.           American
Beacon Large Cap Value Fund

    3.           American
Century Small Company Fund

    

    Dated
this 12th day of December 2008.

     

    
      	
              BDDB01
      5473903v1

            

    

    

    
      
        
          December 2008
                                                              
--exhibit_10-1.htm

    Exhibit
10.1

    EMPLOYMENT
AGREEMENT

    

    

    BETWEEN

    

    

    Actaris Management Services
S.A., whose main office is located in Belgium, 480 Avenue Louise, B-1050
Brussels, registered in the commercial registry of Brussels as number
652504.

    Named
below “the Employer”;

    

    And
represented by Mr. M. Gowers, in his position as “Actaris Chief Financial
Officer”;

    

    

    AND

    

    

    Mr. M. Regnier, residing at
Queens Park, Apartment B.8.3, 32 Avenue des Nénuphars box 18, 1160
Auderghem

    

    Named
below “the Employee”;

    

    
      	
               
      

            	
              WHEREAS

            

    

    

    The
Employer is part of an international group.

     

    The
Employee has the French nationality.

     

    The
Employee has been recruited by the Employer to be temporarily employed in
Belgium whilst he was residing and working in France.

     

    The
Employee will maintain, during his employment in Belgium, the centre of his
economic interests in France. As a consequence, the parties will seek the
application of the Administrative Circular of 8 August 1983 which provides for a
special tax regime for (top) executives who are temporarily employed in Belgium.
The parties negotiated the present contract on the basis of this special
regime.

     

    This
contract sets out the terms and conditions of the Employee’s
employment.

     

    

    THE
FOLLOWING IS AGREED TO:

    

    Article
1

    

    
      	
              1.  

            	
              The
      employee is hired by the Employer in the position of “Actaris Chief Operating Officer
      & Itron Senior Vice
President”

            

    

    

    
      	
              2.  

            	
              The
      Employee will carry out his duties in Brussels (B-1050), at 480 Avenue
      Louise or at such other place as Employer shall direct with the consent of
      Employee, such consent not to be unreasonably
  withheld.

            

    

    

    The
Employee acknowledges and accepts that the workplace is not, for him, an
essential item of this employment agreement, considering that the performance of
the duties and responsibilities associated with his functions requires great
mobility. Furthermore, the Employee agrees to conduct abroad short and long term
duties regularly.

    

    The
Employee expressly acknowledges that the mobility required constitutes an
essential element of this employment agreement.

    

    

    
      	
              3.  

            	
              The
      Employee acknowledges and agrees that the Employer’s right to provide the
      Employee’s experience and his qualifications at the disposal of the other
      companies of the group constitutes an essential condition of this
      employment agreement.

            

    

      .

    Article
2

    

    
      	
              1.  

            	
              The
      employment agreement has been signed for in indeterminate period, from:
      August 1, 2008.

            

    

    

    
      	
              2.  

            	
              It
      is agreed that there is no trial
period.

            

    

    

    
      	
              3.  

            	
              In
      the event that this agreement is ended by the Company for a reason other
      then gross misconduct, both parties agree that the notice period, or
      payment in lieu of, will be limited to the minimum periods determined by
      Belgian employment law and with a maximum of one
  year.

            

    

     

    
      
      

      
        

      

    

    
    

    Article
3

    

    The
Employee acknowledges and agrees that he is occupying a position as executive
and that, considering his position, it is expected of him that he work the
necessary time in order to carry out his work performance to the best, which
assumes, at least that he performs a minimum of 38 hours of work per
week.

    

    Considering
his duty as an executive, it is normal however that the satisfactory performance
of his duties and responsibilities requires that the Employee carry out
additional and/or supplementary services for the minimal period of work referred
to above.

    

    The
Employee acknowledges and agrees that his annual pay, as defined in this
agreement, constitutes sufficient compensation for these additional and/or
supplementary services. Therefore, no proportional additional pay or any
supplementary payment or compensatory time off will be due for these additional
and/or supplementary services.

    

    Article
4

    

    
      	
              1.  

            	
              The
      annual pay of the Employee is established at a gross amount of € 300,000,
      - to be diminished by legal and conventional withholding and will be paid
      in 12 payments. This pay includes all of the obligatory legal and
      conventional allowances, in particular the thirteenth month and the
      holiday bonus payment.

            

    

    

    The
amount of € 300,000 includes the payment of some expenses incurred by the
employee because of his starting work in Belgium, which are considered by the
tax department and by the social security department as the employer’s expenses
and not as pay. These expenses include a cost of living allowance, a tax
equalization allowance (“tax equalization”) and an allowance compensating for
the differential of housing costs between his country of origin and his housing
costs in Belgium. The amount of these allowances, deductible in order to
determine the employee’s taxable income and the base for calculating the social
security contributions, will be established by formulas established by the
Belgian tax department (application of the “technical note”). If the employee
should not meet the necessary conditions to benefit from the special status of
foreign executive or if he stopped meeting them during his employment in
Belgium, the employer will not in any case be required to assure him a net
income equivalent to what he would have received (or was receiving) if this
special status were applicable.

    

    
      	
              2.  

            	
              The
      employee belongs to the “Management Incentive Plan” of Itron, Inc. On the
      basis of this regulation he benefits from a bonus with a target bonus of
      75% (as may be adjusted from time to time by Itron within its sole
      discretion) of his gross annual pay according to whether or not he meets
      the objectives set forth at the beginning of the year and in accordance
      with the terms and conditions of the Plan. The bonus may be paid in cash
      or in any other form, at the employer’s
  discretion.

            

    

    

    
      	
              3.  

            	
              He
      will receive an annual housing allowance of 23.700 EUR
    gross.

            

    

    

    
      	
              4.  

            	
              Any
      premium or bonus, whatever the description, that the Employer may grant to
      the Employee beyond the payment referred to in Article 4.1 of this
      agreement is revocable, whatever the amount or frequency of the payment.
      The Employee may not in any case consider the payment of these amounts as
      a right he is entitled to.  Any decision by the Employer
      concerning such a premium or bonus will be solely valid for the period
      determined by the Employer and will only paid for that period, in
      accordance with the conditions specified by the
  Employer.

            

    

    

    
      	
              5.  

            	
              The
      Employee expressly declares that he agrees that the payment of his income,
      decreased by legal and conventional withholding, will be done by a bank
      account.

            

    

    

    Article
5

    

    The
employee will benefit from use of a company vehicle at the company’s expense.
The employee will be authorized to use this vehicle for his private needs,
within the limits established by the applicable regulations and uses in effect
in Actaris Management Services SA. The employee will support the income tax
which will be due on the benefit in kind resulting from the private use of the
company vehicle, calculated according to legal rules.

    

    Article
6

    

    
      	
              1.  

            	
              The
      employee will benefit from the Group Insurance providing for extra-legal
      coverage for risks on pension matters that the Employer has provided for
      his personnel, subject to the terms and conditions of such Group
      Insurance.

            

    

    

    
      	
              2.  

            	
              The
      employee may also benefit from the Employer’s existing “Collective
      Hospitalization

            

    

     Insurance”,
subject to the terms and conditions of such Collective Hospitalization
Insurance.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Article
7

    

    
      	
              1.  

            	
              The
      Employee has the right to 20 days of legal annual vacation (plus 4
      additional vacation days) as well as vacation payments in accordance with
      legal and/or regulatory provisions applicable to the Employee, insofar as
      he meets the conditions specified by Belgian legislation relative to
      annual vacations.

            

    

    

    
      	
              2.  

            	
              The
      dates of the annual vacation are established in agreement with the
      employer, considering applicable legal and regulatory provisions with the
      Employer and having considered the Employer’s operational and/or
      organizational needs.

            

    

    

    Article
8

    

    The
Employee agrees to devote all of his working time as well as all his efforts
exclusively to the interests of the Employer and during this employment
agreement not to accept any other employment or to conduct any other
professional activity outside of that conducted for the Employer, without the
prior written agreement of the Employer, whether or not it is similar to his
services for the Employer and whether or not it is conducted at the same time as
his services for the Employer.

    Article
9

    

    The
Employee acknowledges that he had no knowledge before he started work for the
Employer of confidential or secret information relative to the Employer’s
business activities and/or any other firm with which the Employer maintains
business relations.

    

    The
Employee acknowledges that confidential or secret information relative to the
Employer’s business activities and/or any other company with which the Employer
is commercially associated is strictly confidential and of a secret nature and
that it takes on for the Employer a valuable, special and unique meaning,
conferring a great value to him.

    

    Without
prejudice to the prohibition on revealing manufacturing or business secrets,
specified by Article 17.3 of the law of July 3, 1978 and by article 309 of the
Criminal Code, the Employee agrees to keep secret and not to use or let to be
used, make public, communicate or disclose, directly or indirectly, totally or
partially, at any time, both during his working relations, and after its ending,
whatever the reason for the breakup, no matter what the circumstances, the
purpose or the reason, all of the manufacturing or business secrets or any other
secret information, whatever their importance, that he knew of during his work
for the Employer, such as information relative to activities, suppliers,
customers, the organization and to the Employer’s personnel, and more
particularly lists of customers, price lists and other conditions of sale and
work methods.

    

    On the
day of the cancellation of his employment agreement, whatever the reason may
be,

    as well
as at any time and at first request by the Employer during the work
relationship, the Employee will immediately hand in all originals, copies and/or
summaries of documents, reports, files, data processing programs, diskettes,
notes, lists, writing paper, correspondence, samples and any other similar
information and/or information medium, having directly or
indirectly  connection with the Employer or his businesses, whether he
received them  from the Employer, or if he prepared them himself, as
well as any other subject that he may have received for the conduct of his
work.

    

    The
documents and items referred to above are and will always remain the exclusive
property of the Employer. Furthermore, the Employee agrees not to take or keep
copies of any of the preceding and to confirm to the Employer, at the end of his
employment contract, that no copy has been taken or kept.

    

    Any
violation of the above obligations, however small it may be, during his
employment, constitutes a serious reason justifying an immediate cancellation of
this agreement, without notice or compensation, or compensatory payment with
notice.

    

    Any
action taken by the Employer toward the Employee in the context of this
provision does not prejudice possible criminal prosecution against the Employee
or any third party.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Article
10

    

    
      	
              1.  

            	
              Without
      prejudice to the general methods of termination of obligations, the
      parties may not end this employment agreement except by observing the
      provisions specified in the law of July 3, 1978 relative to employment
      agreements.

            

    

    

    2.    Each
of the parties may end this agreement without notice or without compensatory
payment        with notice, for serious
reason, without prejudice to the right of claiming compensation
       depending on the case.

    

    The
Employee acknowledges that any breach of his obligations, such as described in
this agreement, or that any serious breach or any negligence in the conduct of
his duties may be considered as a serious reason justifying the cancellation of
this agreement without notice or compensatory payment with
notice.

    Article
11

    

    The
Employee undertakes, for a period of 12 months as from the termination of this
agreement, not to recruit, directly or indirectly, as an individual or through a
company, persons which have been employed by the Employer during the six months
preceding the termination of this agreement.

    

    The
Employee also undertakes not to facilitate the recruitment by third parties of
employees referred to in the previous paragraph, directly or indirectly, for the
same period as that referred above.

    

    In case
of a breach of the present clause, the Employer will have the right to claim
damages to compensate the effectively suffered prejudice.

    

    The
Employee explicitly recognizes that the level of remuneration paid during the
exercise of the present employment contract is sufficiently high as
consideration for the obligation taken on under this article.

    

    

    Article
12

    

    12.1

    Parties
explicitly agree that the Employer exclusively acquires any and all intellectual
and industrial property rights (including but not limited to patents,
copyrights, the right to drawings and models, trademarks and similar rights)
with respect to any and all drawings, models, texts, documentation, graphical
presentations, software, creations, inventions improvements, services,
modifications, discoveries, and developments or other results which result
directly or indirectly:

    

    1) either
from a task the Employer entrusted the Employee with,

    2) either
from the Employee’s activities linked to the performance of his
functions,

    3) either
from activities that take place under the supervision of the
Employer,

    4) either
from the Employee’s activities performed through Employer’s means or from
Employer’s projects,

    

    whether
these activities are performed during or after normal working hours and within
or outside the Employer’s premises. The Employee acknowledges that with respect
to these activities, which can lead to intellectual and industrial property
rights, he is remunerated by the salary paid by the Employer in furtherance of
this agreement.

    

    The
transfer of all these rights, amongst other the copyrights, is exclusive and
irrevocable. It encompasses any and all ways and means of exploitation of such
rights, for the entire term of protection thereof and covering the entire
world.

    

    12.2

    It is the
Employer’s sole discretion to decide if, when and in which form(s) the results
of the works shall be exploited. Even the non-exploited works shall remain the
Employer’s exclusive ownership.

    

    The
Employer is allowed to not mention the Employee’s name or to alter the works to
the extent required for its exploitation, notwithstanding the Employee’s right
to protest to each alteration, modification or other change to his works as well
as to any other change to his works that might damage his reputation and
honor.

    

    12.3

    The
Employee undertakes to assist the Employer in all required ways in order to
obtain the intellectual or industrial property protection, including by signing
the appropriate documents and by his participation to the procedures necessary
to obtain the respective right or protection.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Article
13

    

    The
Employee agrees that the Employer may process his personal data collected in
view of and during his employment for purposes of recruitment, vetting, staff
and salary administration, insurance, benefits in kind, assessment, training,
skills management, activity planning, internal auditing, HR-related surveys and
whenever required in the course of his employment at the Employer.

    

    Whenever
required, the Employee accepts that the Employer share the Employee’s personal
data, in Belgium and abroad, with external service providers, public
administration services, payroll agency and social security authorities, banks
and insurance companies and, when relating to security incidents, with justice
and police services. Employee also acknowledges and agrees that all personal
data required to be disclosed pursuant to U.S. securities laws may be disclosed
as required.

    

    The
Employee certifies that all personal data communicated to the Employer is
correct and up to date, and undertakes to inform the Employer in advance of any
changes. The Employer undertakes to process and protect the Employee’s personal
data in accordance with the Act of 8 December 1992 on privacy.

    

    The
Employee is entitled to consult and correct his data by contacting the Human
Resources department.  For any other questions relating to the
processing of his personal data, the Employee can contact Gerda
Clocheret.

    

    Article
14

    

    If a
provision of this agreement or a part of the provision were declared null or
contrary to an imperative regulation in effect, the remaining provisions will
not be automatically null and will consequently retain their
validity.

    

    Article
15

    

    This
employment agreement replaces all the accords, regulations and/or understandings
between the Employee and the Employer to the extent that the provisions of this
agreement are in contradiction with the content of these accords, regulations
and/or understandings.

    

    Article
16

    

    The
Employee also acknowledges having known of the information imposed by CCT no. 22
of June 26, 1975 concerning the reception and adaptation of workers in the
firm.

    

    Article
17

    

    The terms
and contents of this agreement shall be governed by and interpreted in
accordance with Belgian law.

    

    The
Employee acknowledges having received an original copy of this employment
agreement, duly signed by all the parties.

    

    Done in
two original copies in Brussels on July 28, 2008

    

    (Read
and
approved)                                               
 (Read and approved)

    

    The
Employer                                                              
 The Employee

    

      /s/ M.
Gowers                                     
                         /s/ M.
Regnier                                         

    

    M.
Gowers                                                             
M. Regnier

    Actaris Chief Financial Officer            Actaris Chief
Operating Officer & Sr. Itron Vice President

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