Document:

exhibit10_10.htm

    Exhibit
10.10

     

    AMENDMENT
NO. 1

     

    Dated as
of February 26, 2008

     

    to

     

    AMENDED
AND RESTATED CREDIT AGREEMENT

     

    Dated as
of December 14, 2006

     

    THIS
AMENDMENT NO. 1 (“Amendment”) is made
as of February 26, 2008 (the “Effective Date”) by
and among Franklin Electric Co., Inc., an Indiana corporation (the “Borrower”), the
financial institutions listed on the signature pages hereof and JPMorgan Chase
Bank, National Association, as Administrative Agent (the “Administrative
Agent”), under that certain Credit Agreement dated as of December 14,
2006 by and among the Borrower, the Lenders and the Administrative Agent (as
amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”).  Capitalized terms used herein and not otherwise
defined herein shall have the respective meanings given to them in the Credit
Agreement.

     

    WHEREAS,
the Borrower has requested that certain modifications be made to the Credit
Agreement;

     

    WHEREAS,
the Borrower, the Lenders party hereto and the Administrative Agent have agreed
to amend the Credit Agreement on the terms and conditions set forth
herein;

     

    NOW,
THEREFORE, in consideration of the premises set forth above, the terms and
conditions contained herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Borrower, the
Lenders party hereto and the Administrative Agent hereby agree to the following
amendments to the Credit Agreement.

     

    1. Amendments to Credit
Agreement.  Effective as of the Effective Date but subject to
the satisfaction of the conditions precedent set forth in Section 2 below, the
Credit Agreement is hereby amended as follows:

     

    (a) Section 5.08
(Leverage Ratio) of the Credit Agreement is hereby amended by deleting the
language now contained therein and substituting the following
therefor:

     

    “As of
the end of each fiscal quarter ending on or about December 31, 2007 or before
and the end of each fiscal quarter ending on or about June 30, 2009 or
thereafter, the Leverage Ratio shall not exceed 3.0 to 1.0, and as of the end of
each fiscal quarter ending on or about March 29, 2008 or thereafter to and
including the fiscal quarter ending on or about April 4, 2009, the Leverage
Ratio shall not exceed 3.5 to 1.0.”

     

    
      
         

      

      
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              CH1
      4125604v.3

            

    

    (b) The
Pricing Schedule to the Credit Agreement is hereby amended by deleting the
Pricing Schedule now attached to the Credit Agreement and substituting therefor
the Pricing Schedule attached to this Amendment.

     

    2. Conditions of
Effectiveness.  The effectiveness of this Amendment is subject
to the conditions precedent that the Administrative Agent shall have received
(i) counterparts of this Amendment duly executed by the Borrower, the Required
Lenders and the Administrative Agent and (ii) for the account of each Lender
which delivers its executed signature page hereto by such time as is requested
by the Administrative Agent, a work fee equal to $5,000.

     

    3. Representations and
Warranties of the Borrower.  The Borrower hereby represents and
warrants as follows:

     

    (a) This
Amendment and the Credit Agreement as amended hereby constitute legal, valid and
binding obligations of the Borrower and are enforceable against the Borrower in
accordance with their terms, subject to applicable bankruptcy, insolvency,
reorganization, moratorium or other laws affecting creditors’ rights generally
and subject to general principles of equity, regardless of whether considered in
a proceeding in equity or at law.

     

    (b) As of the
date hereof and after giving effect to the terms of this Amendment, (i) no
Default shall have occurred and be continuing and (ii) the representations and
warranties of the Borrower set forth in the Credit Agreement, as amended hereby,
are true and correct in all material respects as of the date hereof (other than
such representations and warranties as are made of a specific earlier date, in
which case such representations and warranties were true and correct in all
material respects as of such earlier date).

     

    4. Reference to and Effect on
the Credit Agreement.

     

    (a) Upon the
effectiveness hereof, each reference to the Credit Agreement in the Credit
Agreement or any other Loan Document shall mean and be a reference to the Credit
Agreement as amended hereby.

     

    (b) Except as
specifically amended above, the Credit Agreement and all other documents,
instruments and agreements executed and/or delivered in connection therewith
shall remain in full force and effect and are hereby ratified and
confirmed.

     

    (c) The
execution, delivery and effectiveness of this Amendment shall not operate as a
waiver of any right, power or remedy of the Administrative Agent or the Lenders,
nor constitute a waiver of any provision of the Credit Agreement or any other
documents, instruments and agreements executed and/or delivered in connection
therewith.

     

    5. Governing
Law.  This Amendment shall be construed in accordance with and
governed by the law of the State of Illinois.

     

    
      
         

      

      
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    6. Costs and
Expenses.  The Borrower agrees to pay all reasonable
out-of-pocket costs, fees and other expenses (including attorneys’ fees and
expenses charged to the Administrative Agent) incurred by the Administrative
Agent in connection with the preparation, execution and enforcement of this
Amendment.

     

    7. Headings.  Section
headings in this Amendment are included herein for convenience of reference only
and shall not constitute a part of this Amendment for any other
purpose.

     

    8. Counterparts.  This
Amendment may be executed by one or more of the parties hereto on any number of
separate counterparts, and all of said counterparts taken together shall be
deemed to constitute one and the same instrument.

     

    [Signature
Pages Follow]

    
      
         

      

      
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    IN
WITNESS WHEREOF, this Amendment has been duly executed as of the day and year
first above written.

     

    

    FRANKLIN
ELECTRIC CO., INC.,

    as the
Borrower

    

    

    By:____________________________________

    Name:

    Title:

    

    

    

    

    
      
        
          Signature
Page to Amendment No. 1 to

          Franklin
Electric Credit Agreement

        

         

      

      
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    JPMORGAN
CHASE BANK,

    NATIONAL
ASSOCIATION,

    individually
as a Lender and, as the Swingline Lender, as the Issuing Bank and as the
Administrative Agent

    

    

    By:_______________________________________

    Name:

    Title:

    

    

    
      
        
          Signature
Page to Amendment No. 1 to

          Franklin
Electric Credit Agreement

        

         

      

      
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    WACHOVIA
BANK,

    NATIONAL
ASSOCIATION,

    

    

    By:____________________________________

    Name:

    Title:

    
      
        
          Signature
Page to Amendment No. 1 to

          Franklin
Electric Credit Agreement

        

         

      

      
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    LASALLE
BANK, NATIONAL ASSOCIATION

    

    

    By:____________________________________

    Name:

    Title:

    

    
      
        
          Signature
Page to Amendment No. 1 to

          Franklin
Electric Credit Agreement

        

         

      

      
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    WELLS
FARGO BANK, NATIONAL ASSOCIATION

    

    

    By:____________________________________

    Name:

    Title:

    

    
      
        
          Signature
Page to Amendment No. 1 to

          Franklin
Electric Credit Agreement

        

         

      

      
        - 79
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    PRICING
SCHEDULE

     

    
      	
              APPLICABLE

              MARGIN

            	
              LEVEL
      I

              STATUS

            	
              LEVEL
      II

              STATUS

            	
              LEVEL
      III

              STATUS

            	
              LEVEL
      IV

              STATUS

            	
              LEVEL
      V

              STATUS

            	
              LEVEL
      VI

              STATUS

            
	
              Eurocurrency
      Loans

            	
              0.270%

            	
              0.31%

            	
              0.40%

            	
              0.50%

            	
              0.70%

            	
              0.90%

            

    

    

    
      	
              APPLICABLE

              FEE
      RATE

            	
              LEVEL
      I

              STATUS

            	
              LEVEL
      II

              STATUS

            	
              LEVEL
      III

              STATUS

            	
              LEVEL
      IV

              STATUS

            	
              LEVEL
      V

              STATUS

            	
              LEVEL
      VI STATUS

            
	
              Facility
      Fee

            	
              0.08%

            	
              0.09%

            	
              0.10%

            	
              0.125%

            	
              0.175%

            	
              0.225%

            

    

    

    For
purposes of this Schedule, the following terms have the following meanings,
subject to the final paragraph of this Schedule:

     

    "Financials"
means the annual or quarterly financial statements of the Borrower delivered
pursuant to Section 5.01(i) or (ii).

     

    "Level I
Status" exists at any date if, as of the last day of the fiscal quarter of the
Borrower referred to in the most recent Financials, the Leverage Ratio is less
than or equal to 1.0 to 1.00.

     

    "Level II
Status" exists at any date if, as of the last day of the fiscal quarter of the
Borrower referred to in the most recent Financials, (i) the Borrower has not
qualified for Level I Status and (ii) the Leverage Ratio is less than or equal
to 1.5 to 1.00.

     

    "Level
III Status" exists at any date if, as of the last day of the fiscal quarter of
the Borrower referred to in the most recent Financials, (i) the Borrower has not
qualified for Level I Status or Level II Status and (ii) the Leverage Ratio is
less than or equal to 2.0 to 1.00.

     

    "Level IV
Status" exists at any date if, as of the last day of the fiscal quarter of the
Borrower referred to in the most recent Financials, (i) the Borrower has not
qualified for Level I Status, Level II Status or Level III Status and (ii) the
Leverage Ratio is less than or equal to 2.5 to 1.00.

     

    "Level V
Status" exists at any date if, as of the last day of the fiscal quarter of the
Borrower referred to in the most recent Financials, (i) the Borrower has not
qualified for Level I Status, Level II Status, Level III Status or Level IV
Status and (ii) the Leverage Ratio is less than or equal to 3.00 to
1.00.

     

    “Level VI
Status” exists at any date if, as of the last day of the fiscal quarter of the
Borrower referred to in the most recent Financials, the Borrower has not
qualified for Level I Status, Level II Status, Level III Status, Level IV Status
or Level V Status.

     

    "Status"
means either Level I Status, Level II Status, Level III Status, Level IV Status
or Level V Status or Level VI Status.

     

    
      
         

      

      
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    The
Applicable Margin and Applicable Fee Rate shall be determined in accordance with
the foregoing table based on the Borrower's Status as reflected in the then most
recent Financials.  Adjustments, if any, to the Applicable Margin or
Applicable Fee Rate shall be effective five Business Days after the Agent has
received the applicable Financials.  If the Borrower fails to deliver
the Financials to the Agent at the time required pursuant to Section 5.01, then
the Applicable Margin and Applicable Fee Rate shall be the highest Applicable
Margin and Applicable Fee Rate set forth in the foregoing table until five days
after such Financials are so delivered.

     

    
      
         

      

      
        - 81
-exhibit10_13.htm

    Exhibit
10.13

    

    

    February
26, 2008

    

    

    

    Franklin
Electric Co., Inc.

    400 East
Spring Street

    Bluffton,
Indiana 46714

    Attention:
Secretary

    

    
      	
               
      

            	
              Re:

            	
              Amendment
      No. 2 to Second Amended and Restated Note
  Purchase

            

    

    and Private Shelf
Agreement

    

    Ladies
and Gentlemen:

    

    Reference is made to that certain
Second Amended and Restated Note Purchase and Private Shelf Agreement dated as
of September 9, 2004 by and among Franklin Electric Co., Inc., an Indiana
corporation (the “Company”), Prudential Investment Management, Inc. (“PIM”), The
Prudential Insurance Company of America (“PICA” and together with PIM,
“Prudential”) as amended by that certain letter agreement dated as of April 9,
2007 by and among the Company, PIM and PICA (the “Note Agreement”), and each
other Prudential Affiliate which from time to time becomes a party to the Note
Agreement in accordance with the terms thereof.  Capitalized terms
used herein and not otherwise defined herein shall have the meanings assigned to
such terms in the Agreement.

    

    Pursuant
to the request of the Company and in accordance with the provisions of paragraph
11C of the Note Agreement, the parties hereto agree as follows:

     

    SECTION
1.                                Amendment.  From
and after the Effective Date (as defined in Section 3 hereof), the Note
Agreement is amended as follows:

     

    1.1           Paragraph
6B(10) of the Note Agreement is hereby amended and restated in its entirety to
read as follows:

     

    6B(10).  Debt to EBITDA
Ratio.  At the end of each Fiscal Quarter, the ratio of
Consolidated Total Debt as at the end of such Fiscal Quarter to Consolidated
EBITDA for the period of four consecutive Fiscal Quarters then ended shall not
exceed: (i) for any Fiscal Quarter ending on March 31, 2002, through and
including December 31, 2007, 3.00 to 1.00, (ii) for any Fiscal Quarter ending on
March 29, 2008, through and including April 4, 2009, 3.50 to 1.00, and (iii) for
any Fiscal Quarter ending on June 30, 2009 or thereafter, 3.00 to
1.00.

    
      
         

      

      
        - 82
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    1.2           The
definition of “Applicable Number” appearing in paragraph 5G of the Note
Agreement is hereby amended and restated in its entirety to read as
follows:

    

    “Applicable Number” shall mean
(i) .00075 if, with respect to such Fiscal Quarter, the ratio of Consolidated
Total Debt to EBITDA, as calculated above, was equal to or greater than 2.00 to
1.00, but not greater than 2.50 to 1.00, (ii) .0015 if, with respect to such
Fiscal Quarter, the ratio of Consolidated Total Debt to EBITDA, as calculated
above, was greater than 2.50 to 1.00 but not greater than 3.00 to 1.00 or (iii)
..0025 if, with respect to such Fiscal Quarter, the ratio of Consolidated Total
Debt to EBITDA, as calculated above, was greater than 3.00 to 1.00.

    

    SECTION
2.                                Representations
and Warranties.
The Company represents and warrants that, after giving effect hereto, each
representation and warranty set forth in paragraph 8 of the Note Agreement, as
amended hereby, is true on and as of the date of the execution and delivery of
this letter by the Company with the same effect as if made on such date (except
to the extent of changes caused by transactions contemplated under and permitted
by the Note Agreement, as amended hereby).

    

    SECTION 3.  Conditions
Precedent; Binding Agreement.  This letter shall become
effective as of the date hereof (the “Effective Date”) upon (i) the return by
the Company to Prudential Capital Group (Attention: Wiley S. Adams) of an
original counterpart to this letter, duly executed and delivered by the Company,
PIM,  PICA and each of the other noteholders signatory hereto (the
“Other Holders”) and (ii) the receipt by Wiley S. Adams, counsel for PIM, PICA
and the Other Holders, of an amendment to the Company’s primary bank facility in
form and substance reasonably acceptable to the Required Holders amending such
facility in substantially the same manner as Section 1.1 above.  Upon
the satisfaction of the foregoing conditions, this letter shall become a binding
agreement among the Company, PIM,  PICA and such Other
Holders.

    

               SECTION
4.                                Reference
to and Effect on Agreement.  Upon the Effective Date, each
reference to the Note Agreement in any other document, instrument or agreement
shall mean and be a reference to the Note Agreement as modified by this
letter.  Except as specifically set forth in Section 1 hereof, the
Note Agreement shall remain in full force and effect and is hereby ratified and
confirmed in all respects.

    
      
         

      

      
        - 83
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    SECTION 5.  Governing
Law.  THIS LETTER SHALL BE CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, AND THE RIGHTS OF THE PARTIES SHALL BE GOVERNED BY,
THE LAWS OF THE STATE OF ILLINOIS (EXCLUDING ANY CONFLICTS OF LAW RULES WHICH
WOULD OTHERWISE CAUSE THIS LETTER TO BE CONSTRUED OR ENFORCED IN ACCORDANCE
WITH, OR THE RIGHTS OF THE PARTIES TO BE GOVERNED BY, THE LAWS OF ANY OTHER
JURISDICTION).

    

    SECTION 6.  Counterparts;
Section Titles.  This letter may
be executed in any number of counterparts, each of which when so executed and
delivered shall be deemed to be an original and all of which taken together
shall constitute but one and the same instrument.  The section titles
contained in this letter are and shall be without substance, meaning or content
of any kind whatsoever and are not a part of the agreement between the parties
hereto.  Delivery of an executed counterpart of a signature page to
this letter by facsimile shall be effective as delivery of a manually executed
counterpart of this letter.

    

    

    Very
truly yours,

    

    PRUDENTIAL
INVESTMENT MANAGEMENT, INC.

     

    By:           

    Vice-President

    

    

    THE
PRUDENTIAL INSURANCE COMPANY

        OF
AMERICA

    

    

    By:  ___________________________________

    Vice
President

    
      
         

      

      
        - 84
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    MUTUAL
OF OMAHA INSURANCE

      COMPANY

    

    By:           Prudential
Private Placement Investors,

    L.P. (as Investment
Advisor)

    

    By:           Prudential
Private Placement Investors, Inc.

    (as its
General Partner)

    

    

    By:  ______________________________

    Vice President

    

    

    

    

    UNITED
OF OMAHA LIFE INSURANCE

      COMPANY

    

    By:           Prudential
Private Placement Investors,

    L.P. (as Investment
Advisor)

    

    By:           Prudential
Private Placement Investors, Inc.

    (as its
General Partner)

    

    

    By:  ______________________________

    Vice President

    

    

    Agreed
and accepted:

    

    FRANKLIN
ELECTRIC CO., INC.

    

    

    By:   ______________________________                                                  

               Thomas
J. Strupp,

    Vice
President, Chief Financial Officer

    and
Secretary

    
      
         

      

      
        - 85
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