Document:

Registration Rights Agreement

    EXHIBIT
      10.1

    

    

    

    BANC
      OF AMERICA SECURITIES LLCJ.P.
      MORGAN SECURITIES INC.

    

    

    

    

    

    

    $250,000,000
      AGGREGATE PRINCIPAL AMOUNT

     

    CHARMING
      SHOPPES, INC.

     

    1.125%
      SENIOR CONVERTIBLE NOTES

     

    DUE
      2014

     

    Registration
      Rights Agreement

     

    dated
      April 30, 2007

     

    

     

    

     

    

     

    

     

    

     

    

     

    

     

    

     

    

     

    

     

    

     

    

     

    

     

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    REGISTRATION
      RIGHTS AGREEMENT, dated as of April 30, 2007, among Charming Shoppes, Inc.,
      a
      Pennsylvania corporation (together with any successor entity, herein referred
      to
      as the “Company”),
      Banc
      of America Securities LLC and J.P. Morgan Securities Inc., as representatives
      (the “Representatives”)
      of the
      several initial purchasers (the “Initial
      Purchasers”)
      under
      the Purchase Agreement (as defined below).

     

    Pursuant
      to the Purchase Agreement, dated as of April 24, 2007, between the Company
      and
      the Representatives (the “Purchase
      Agreement”),
      relating to the initial placement (the “Initial
      Placement”)
      of the
      Notes (as defined below), the Initial Purchasers have agreed to purchase from
      the Company $250,000,000 ($275,000,000 if the Initial Purchasers exercise their
      over-allotment option in full) in aggregate principal amount of 1.125% Senior
      Convertible Notes due 2014 (the “Notes”).
      The
      Notes will be convertible, subject to the terms thereof, into cash and fully
      paid, nonassessable shares of common stock, par value $0.10 per share, if any,
      of the Company (the “Common
      Stock”),
      unless the Company elects to satisfy its entire conversion obligation in shares
      of Common Stock. The Notes will be convertible on the terms, and subject to
      the
      conditions, set forth in the Indenture (as defined herein). To induce the
      Initial Purchasers to purchase the Notes, the Company has agreed to provide
      the
      registration rights set forth in this Agreement pursuant to Section 5(g) of
      the
      Purchase Agreement. 

     

    The
      parties hereby agree as follows:

     

    1.  Definitions.
      Capitalized
      terms used in this Agreement without definition shall have their respective
      meanings set forth in the Purchase Agreement. As
      used
      in this Agreement, the following capitalized terms shall have the following
      meanings:

     

    “Additional
      Amounts”:
      As
      defined in Section 3(a) hereof.

     

    “Additional
      Amounts Payment Date”:
      Each
      November 1 and May 1.

     

    “Affiliate”
of
      any
      specified person means any other person that, directly or indirectly, is in
      control of, is controlled by, or is under common control with, such specified
      person. For purposes of this definition, control of a person means the power,
      direct or indirect, to direct or cause the direction of the management and
      policies of such person whether by contract or otherwise; and the terms
“controlling” and “controlled” have meanings correlative to the
      foregoing.

     

    “Agreement”:
      This
      Registration Rights Agreement.

     

    “Amendment
      Effectiveness Deadline Date”
As
      defined in Section 2(f)(i) hereof.

     

    “Automatic
      Shelf Registration Statement”:
      An
      automatic shelf registration statement within the meaning of Rule 405 under
      the
      Securities Act.

     

    “Blue
      Sky Application”:
      As
      defined in Section 6(a)(i) hereof.

     

    “Business
      Day”:
      The
      definition of “Business Day” in the Indenture.

     

    “Closing
      Date”:
      The
      date of the first issuance of the Notes.

     

    “Commission”:
      Securities and Exchange Commission.

     

    “Common
      Stock”:
      As
      defined in the preamble hereto.

     

    “Company”:
      As
      defined in the preamble hereto.

     

    “Effectiveness
      Period”:
      As
      defined in Section 2(a)(iii) hereof.

     

    “Effectiveness
      Target Date”:
      As
      defined in Section 2(a)(ii) hereof.

     

    “Exchange
      Act”:
      Securities Exchange Act of 1934, as amended.

     

    “Holder”:
      A
      Person who owns, beneficially or otherwise, Transfer Restricted
      Securities.

     

    “Indemnified
      Holder”:
      As
      defined in Section 6(a) hereof.

     

    “Indenture”:
      The
      Indenture, dated as of April 30, 2007 between the Company and Wells Fargo Bank,
      National Association, as trustee (the “Trustee”),
      pursuant to which the Notes are to be issued, as such Indenture is amended,
      modified or supplemented from time to time in accordance with the terms
      thereof.

     

    “Initial
      Placement”:
      As
      defined in the preamble hereto.

     

    “Initial
      Purchasers”:
      As
      defined in the preamble hereto.

     

    “Losses”:
      As
      defined in Section 6(e) hereof.

     

    “Majority
      of Holders”:
      Holders holding over 50% of the aggregate principal amount of Notes outstanding;
      provided
      that,
      for the purpose of this definition, a holder of shares of Common Stock which
      constitute Transfer Restricted Securities and were issued upon conversion of
      the
      Notes shall be deemed to hold an aggregate principal amount of the Notes (in
      addition to the principal amount of the Notes held by such holder) equal to
      the
      quotient of (x) the number of such shares of Common Stock held by such holder
      and (y) the conversion rate in effect at the time of such conversion as
      determined in accordance with the Indenture.

     

    “Managing
      Underwriter”:
      The
      investment banker or investment bankers and manager or managers that administer
      an underwritten offering, if any, conducted pursuant to Section 8
      hereof.

     

    “NASD”:
      National Association of Securities Dealers, Inc. 

     

    “Notes”:
      As
      defined in the preamble hereto.

     

    “Notice
      and Questionnaire”:
      A
      written notice executed by a Holder and delivered to the Company containing
      substantially the information called for by the Form of Selling Securityholder
      Notice and Questionnaire attached as Annex A to the Offering Memorandum of
      the
      Company relating to the Notes.

     

    “Notice
      Holder”:
      On any
      date, any Holder of Transfer Restricted Securities that has delivered a Notice
      and Questionnaire to the Company on or prior to such date.

     

    “Person”:
      An
      individual, partnership, corporation, company, unincorporated organization,
      trust, joint venture or a government or agency or political subdivision thereof,
      or another entity.

     

    “Prospectus”:
      The
      prospectus included in a Shelf Registration Statement, as amended or
      supplemented by any prospectus supplement and by all other amendments thereto,
      including post-effective amendments, and all material incorporated by reference
      into such prospectus.

     

    “Purchase
      Agreement”:
      As
      defined in the preamble hereto.

     

    “Record
      Holder”:
      With
      respect to any Additional Amounts Payment Date, each Person who is a Holder
      on
      the Interest Record Date (as defined in the Indenture) for the Notes immediately
      preceding the relevant Additional Amounts Payment Date. In the case of a Holder
      of shares of Common Stock issued upon conversion of the Notes, “Record Holder”
shall mean each Person who is a Holder of shares of Common Stock which
      constitute Transfer Restricted Securities on the Interest Record
      Date.

     

    “Registration
      Default”:
      As
      defined in Section 3(a) hereof.

     

    “Representatives”:
      As
      defined in the preamble hereto.

     

    “Securities
      Act”:
      The
      Securities Act of 1933, as amended.

     

    “Shelf
      Filing Deadline”:
      As
      defined in Section 2(a)(i) hereof.

     

    “Shelf
      Registration Statement”:
      As
      defined in Section 2(a)(i) hereof.

     

    “Subsequent
      Shelf Registration Statement”:
      As
      defined in Section 2(c) hereof.

     

    “Suspension
      Notice”:
      As
      defined in Section 4(c) hereof.

     

    “Suspension
      Period”:
      As
      defined in Section 4(b)(ii) hereof.

     

    “TIA”:
      Trust
      Indenture Act of 1939, as amended, and the rules and regulations of the
      Commission thereunder, in each case, as in effect on the date the Indenture
      is
      qualified under the TIA.

     

    “Transfer
      Restricted Securities”:
      Each
      Note and each share of Common Stock issued upon conversion of Notes until the
      earliest of:

     

    (i)  the
      date
      on which such Note or such share of Common Stock issued upon conversion has
      been
      effectively registered under the Securities Act and disposed of in accordance
      with the Shelf Registration Statement or a Subsequent Shelf Registration
      Statement;

     

    (ii)  the
      date
      on which such Note or such share of Common Stock issued upon conversion is
      transferred in compliance with Rule 144 under the Securities Act or may be
      sold
      or transferred by a Person who is not an Affiliate of the Company pursuant
      to
      Rule 144 under the Securities Act (or any other similar provision then in force)
      without any volume or manner of sale restrictions thereunder; or

     

    (iii)  the
      date
      on which such Note or such share of Common Stock issued upon conversion ceases
      to be outstanding (whether as a result of redemption, repurchase and
      cancellation, conversion or otherwise).

     

    “Underwriter”:
      Any
      underwriter of Notes in connection with an offering thereof under the Shelf
      Registration Statement.

     

    “WKSI”:
      A
“well known seasoned issuer” as defined in Rule 405 under the Securities
      Act.

     

    “Underwritten
      Registration”:
      A
      registration in which Notes of the Company are sold to an underwriter for
      reoffering to the public.

     

    Unless
      the context otherwise requires, the singular includes the plural, and words
      in
      the plural include the singular.

     

    2.  Shelf
      Registration.
      

     

    (a)  The
      Company shall: 

     

    (i)  as
      promptly as practicable (but in no event more than 120 days after the Closing
      Date) (the “Shelf
      Filing Deadline”),
      cause
      to be filed a registration statement pursuant to Rule 415 under the Securities
      Act or any similar rule that may be adopted by the Commission (the “Shelf
      Registration Statement”),
      which
      Shelf Registration Statement shall be an Automatic Shelf Registration Statement
      if the Company is then a WKSI and shall provide for the registration and
      resales, on a continuous or delayed basis, of all Transfer Restricted Securities
      held by Holders that have provided the information required pursuant to the
      terms of Section 2(b) hereof; 

     

    (ii)  if
      the
      Company is not a WKSI when the shelf registration statement is filed and
      therefore did not file an Automatic Shelf Registration Statement, use its
      reasonable efforts to cause the Shelf Registration Statement to be declared
      effective under the Securities Act by the Commission not later than 210 days
      after the date hereof (the “Effectiveness
      Target Date”);
      and

     

    (iii)  use
      its
      reasonable efforts to keep the Shelf Registration Statement continuously
      effective, supplemented and amended as required by the Securities Act and by
      the
      provisions of Section 4(b) hereof to the extent necessary to ensure that it
      (A)
      is available for resales by the Holders of Transfer Restricted Securities
      entitled, subject to Section 2(b), to the benefit of this Agreement and (B)
      conforms with the requirements of this Agreement and the Securities Act and
      the
      rules and regulations of the Commission promulgated thereunder as announced
      from
      time to time, for a period (the “Effectiveness
      Period”)
      from
      the date the Shelf Registration Statement becomes or is declared effective
      by
      the Commission until the earlier of:

     

    (1)  the
      date
      when the Holders of Transfer Restricted Securities are able to sell all such
      Transfer Restricted Securities immediately without restriction pursuant to
      Rule
      144(k) under the Securities Act; or

     

    (2)  the
      date
      when (a) all of the Transfer Restricted Securities of those Holders that
      complete and deliver in a timely manner the Notice and Questionnaire described
      below are registered under the Shelf Registration Statement and disposed of
      in
      accordance with the Shelf Registration Statement or pursuant to Rule 144(k)
      under the Securities Act or any similar rule that may be adopted by the
      Commission or (b) the Transfer Restricted Securities cease to be
      outstanding.

     

    The
      Company shall be deemed not to have used its reasonable efforts to keep the
      Shelf Registration Statement effective during the Effectiveness Period if it
      voluntarily takes any action that would result in Holders of Transfer Restricted
      Securities not being able to offer and sell such Securities at any time during
      the Effectiveness Period, unless such action is (x) required by applicable
      law
      or otherwise undertaken by the Company in good faith and for valid business
      reasons (not including avoidance of the Company’s obligations hereunder),
      including the acquisition or divestiture of assets, and (y) permitted by Section
      4(b)(ii) hereof.

     

    (b)  At
      the
      time the Shelf Registration Statement becomes or is declared effective, each
      Holder that became a Notice Holder on or prior to the date ten (10) Business
      Days prior to such time of effectiveness shall be named as a selling
      securityholder in the Shelf Registration Statement and the related Prospectus
      in
      such a manner as to permit such Holder to deliver such Prospectus to purchasers
      of Transfer Restricted Securities in accordance with applicable law. None of
      the
      Company’s securityholders (other than the Holders of Transfer Restricted
      Securities) shall have the right to include any of the Company’s securities in
      the Shelf Registration Statement.

     

    (c)  If
      the
      Shelf Registration Statement or any Subsequent Shelf Registration Statement
      ceases to be effective for any reason at any time during the Effectiveness
      Period (other than because all Transfer Restricted Securities registered
      thereunder shall have been resold pursuant thereto or shall have otherwise
      ceased to be Transfer Restricted Securities), the Company shall use its
      reasonable best efforts to obtain the prompt withdrawal of any order suspending
      the effectiveness thereof or file an additional Shelf Registration Statement
      (which shall be an Automatic Shelf Registration Statement if the Company is
      then
      a WKSI) covering all of the securities that as of the date of such filing are
      Transfer Restricted Securities ( a “Subsequent
      Shelf Registration Statement”).
      If a
      Subsequent Shelf Registration Statement is filed and is not an Automatic Shelf
      Registration Statement, the Company shall use its reasonable best efforts to
      cause the Subsequent Shelf Registration Statement to become effective as
      promptly as is practicable after such filing and to keep such Shelf Registration
      Statement (or Subsequent Shelf Registration Statement) continuously effective
      until the end of the Effectiveness Period.

     

    (d)  The
      Company shall supplement and amend the Shelf Registration Statement if required
      by the rules, regulations or instructions applicable to the registration form
      used by the Company for such Shelf Registration Statement, if required by the
      Securities Act.

     

    (e)  The
      Company shall cause the Shelf Registration Statement and the related Prospectus
      and any amendment or supplement thereto, as of the effective date of the Shelf
      Registration Statement or such amendment or supplement, (i) to comply in all
      material respects with the applicable requirements of the Securities Act, and
      (ii) not to contain any untrue statement of a material fact or omit to state
      a
      material fact required to be stated therein or necessary in order to make the
      statements therein (in the case of the Prospectus, in light of the circumstances
      under which they were made) not misleading.

     

    (f)  Each
      Holder agrees that if such Holder wishes to sell Transfer Restricted Securities
      pursuant to a Shelf Registration Statement and related Prospectus, it will
      do so
      only in accordance with this Section 2(f) and Section 4(b). Each Holder wishing
      to sell Transfer Restricted Securities pursuant to a Shelf Registration
      Statement and related Prospectus agrees to deliver a Notice and Questionnaire
      to
      the Company at least ten (10) Business Days prior to any intended distribution
      of Transfer Restricted Securities under the Shelf Registration Statement. From
      and after the date the Shelf Registration Statement becomes or is declared
      effective, the Company shall, as promptly as practicable after the date a Notice
      and Questionnaire is delivered to it:

     

    (i)  if
      required by applicable law, file with the Commission a post-effective amendment
      to the Shelf Registration Statement or prepare and, if required by applicable
      law, file a supplement to the related Prospectus or a supplement or amendment
      to
      any document incorporated therein by reference or file any other required
      document so that the Holder delivering such Notice and Questionnaire is named
      as
      a selling securityholder in the Shelf Registration Statement and the related
      Prospectus in such a manner as to permit such Holder to deliver such Prospectus
      to purchasers of the Transfer Restricted Securities in accordance with
      applicable law and, if the Company shall file a post-effective amendment to
      the
      Shelf Registration Statement and if such Shelf Registration Statement is not
      an
      Automatic Shelf Registration Statement, use its reasonable best efforts to
      cause
      such post-effective amendment to be declared effective under the Securities
      Act
      as promptly as is practicable, but in any event by the date (the “Amendment
      Effectiveness Deadline Date”)
      that
      is forty-five (45) days after the date such post effective amendment is required
      by this clause to be filed;

     

    (ii)  provide
      such Holder copies of any documents filed pursuant to Section 2(f)(i);
      and

     

    (iii)  notify
      such Holder as promptly as practicable after the effectiveness under the
      Securities Act of any post-effective amendment filed pursuant to Section
      2(f)(i);

     

    provided
      that if
      such Notice and Questionnaire is delivered during a Suspension Period, the
      Company shall so inform the Holder delivering such Notice and Questionnaire
      and
      shall take the actions set forth in clauses (i), (ii) and (iii) above upon
      expiration of the Suspension Period in accordance with Section 4(b).
      Notwithstanding anything contained herein to the contrary, (i) the Company
      shall
      be under no obligation to name any Holder that is not a Notice Holder as a
      selling securityholder in any Registration Statement or related Prospectus
      and
      (ii) the Amendment Effectiveness Deadline Date shall be extended by up to
      fifteen (15) Business Days from the Expiration of a Suspension Period (and
      the
      Company shall incur no obligation to pay Additional Amounts during such
      extension) if such Suspension Period shall be in effect on the Amendment
      Effectiveness Deadline Date.

     

    3.  Additional
      Amounts.
      

     

    (a)  If:

     

    (i)  the
      Shelf
      Registration Statement is not filed with the Commission and, if the Company
      is
      then a WKSI, does not become automatically effective prior to or on the Shelf
      Filing Deadline;

     

    (ii)  the
      Company is not a WKSI on the Shelf Filing Deadline, and the Shelf Registration
      Statement has not been declared effective by the Commission prior to or on
      the
      Effectiveness Target Date;

     

    (iii)  the
      Company has failed to perform its obligations set forth in Section 2(f) within
      the time period required therein;

     

    (iv)  any
      post-effective amendment to a Shelf Registration filed pursuant to Section
      2(f)(i) has not become effective under the Securities Act on or prior to the
      Amendment Effectiveness Deadline Date;

     

    (v)  except
      as
      provided in Section 4(b)(i) hereof, the Shelf Registration Statement becomes
      or
      is declared effective but, during the Effectiveness Period, shall thereafter
      cease to be effective or fail to be usable for its intended purpose without
      being succeeded within ten (10) Business Days by a post-effective amendment
      to
      the Shelf Registration Statement, a supplement to the Prospectus or a report
      filed with the Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of
      the
      Exchange Act that cures such failure and, in the case of a post-effective
      amendment, is itself immediately declared effective; or

     

    (vi)  Suspension
      Periods exceed an aggregate of 45 or 60 days, as the case may be, within any
      90-day period or an aggregate of 120 days in any 360-day period;

     

    (each
      such event referred to in foregoing clauses (i) through (vi), a “Registration
      Default”),
      the
      Company hereby agrees to pay interest (“Additional
      Amounts”)
      with
      respect to Notes that are Transfer Restricted Securities from and including
      the
      day following the Registration Default to but excluding the earlier of (1)
      the
      day on which the Registration Default has been cured and (2) the date the Shelf
      Registration Statement is no longer required to be kept effective, accruing
      at a
      rate:

     

    (A)  in
      respect of the Notes that are Transfer Restricted Securities to each Holder
      of
      such Notes, (x) with respect to the first 90-day period during which a
      Registration Default shall have occurred and be continuing, equal to 0.25%
      per
      annum of the aggregate principal amount of the Notes, and (y) with respect
      to
      the period commencing on the 91st day following the day the Registration Default
      shall have occurred and be continuing, equal to 0.50% per annum of the aggregate
      principal amount of the Notes; provided
      that in
      no event shall Additional Amounts accrue at a rate per year exceeding 0.50%
      of
      the aggregate principal amount of the Notes; and

     

    (B)  in
      respect of the Notes that are Transfer Restricted Securities submitted for
      conversion into Common Stock during the existence of a Registration Default
      with
      respect to the Common Stock, the Holder will not be entitled to receive any
      Additional Amounts with respect to such Common Stock but will receive from
      the
      Company on the settlement date with respect to such conversion, accrued and
      unpaid Additional Amounts to the Holders of such Notes calculated in accordance
      with paragraph (A) to the Conversion Date (as defined in the Indenture) relating
      to such settlement date; and 

     

    (C)  a
      Holder
      of Common Stock, if any, issued upon conversion of the Notes will not be
      entitled to any Additional Amounts if the Registration Default with respect
      to
      such Common Stock occurs after such Holder has converted the Notes into Common
      Stock.

     

    (b)  All
      accrued Additional Amounts, except for Additional Amounts paid under the
      circumstances set forth in paragraph (B) of Section 3(a) above, shall be paid
      in
      arrears to Record Holders by the Company on each Additional Amounts Payment
      Date. Upon the cure of all Registration Defaults relating to any particular
      Note, the accrual of Additional Amounts with respect to such Note will
      cease.

     

    All
      obligations of the Company set forth in this Section 3 that are outstanding
      with
      respect to any Note that is a Transfer Restricted Security at the time such
      security ceases to be a Transfer Restricted Security shall survive until such
      time as all such obligations with respect to such Transfer Restricted Security
      shall have been satisfied in full. 

     

    The
      Additional Amounts set forth above shall be the exclusive monetary remedy
      available to the Holders of Notes that are Transfer Restricted Securities for
      each Registration Default.

     

    4.  Registration
      Procedures.
      

     

    (a)  In
      connection with the Shelf Registration Statement, the Company shall comply
      with
      all the provisions of Section 4(b) hereof and shall use its reasonable best
      efforts to effect such registration to permit the sale of the Transfer
      Restricted Securities, and pursuant thereto, shall as promptly as practicable
      prepare and file with the Commission a Shelf Registration Statement relating
      to
      the registration on any appropriate form under the Securities Act.

     

    (b)  In
      connection with the Shelf Registration Statement and any Prospectus required
      by
      this Agreement to permit the sale or resale of Transfer Restricted Securities,
      the Company shall:

     

    (i)  subject
      to any notice by the Company in accordance with this Section 4(b) of the
      existence of any fact or event of the kind described in Section 4(b)(iv)(D),
      use
      its reasonable efforts to keep the Shelf Registration Statement continuously
      effective during the Effectiveness Period; upon the occurrence of any event
      that
      would cause the Shelf Registration Statement or the Prospectus contained therein
      (A) to contain a material misstatement or omission or (B) not to be effective
      and usable for resale of Transfer Restricted Securities during the Effectiveness
      Period, the Company shall file promptly an appropriate amendment to the Shelf
      Registration Statement, a supplement to the Prospectus or a report filed with
      the Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange
      Act, in the case of clause (A), correcting any such misstatement or omission,
      and, in the case of either clause (A) or (B), if such amendment does not become
      automatically effective upon filing with the Commission, use its reasonable
      best
      efforts to cause such amendment to be declared effective and the Shelf
      Registration Statement and the related Prospectus to become usable for their
      intended purposes as soon as practicable thereafter. 

     

    (ii)  notwithstanding
      Section 4(b)(i) hereof, the Company may suspend the effectiveness of the Shelf
      Registration Statement (each such period, a “Suspension
      Period”):

     

    (x)
      if an
      event occurs and is continuing as a result of which the Shelf Registration
      Statement, the Prospectus, any amendment or supplement thereto, or any document
      incorporated by reference therein would, in the Company’s judgment, contain an
      untrue statement of a material fact or omit to state a material fact required
      to
      be stated therein or necessary to make the statements therein not misleading;
      and

     

    (y)
      if
      the Company determines in good faith that the disclosure of a material event
      at
      such time would be seriously detrimental to the Company and its
      subsidiaries.

     

    Upon
      the
      occurrence of any event described in clauses (x) and (y) of this Section
      4(b)(ii), the Company shall give notice to the Holders that the availability
      of
      the Shelf Registration is suspended and, upon actual receipt of any such notice,
      each Holder agrees not to sell any Transfer Restricted Securities pursuant
      to
      the Shelf Registration until such Holder’s receipt of copies of the supplemented
      or amended Prospectus provided for in Section 4(b) hereof. The period during
      which the availability of the Shelf Registration and any Prospectus is suspended
      (the “Suspension Period”) shall not exceed 45 days in any 90-day period,
provided
      that, in
      the event the disclosure relates to a previously undisclosed proposed or pending
      material business transaction, the disclosure of which the Company determines
      in
      good faith would be reasonably likely to impede the Company’s ability to
      consummate such transaction, the Company may extend a Suspension Period from
      45
      days to 60 days; provided,
      further,
      that
      Suspension Periods shall not exceed an aggregate of 120 days in any 360-day
      period. The Company shall not be required to specify in the written notice
      to
      the Holders the nature of the event giving rise to the Suspension
      Period.

     

    (iii)  prepare
      and file with the Commission such amendments and post-effective amendments
      to
      the Shelf Registration Statement as may be necessary to keep the Shelf
      Registration Statement effective during the Effectiveness Period; cause the
      Prospectus to be supplemented by any required Prospectus supplement, and as
      so
      supplemented to be filed pursuant to Rule 424 under the Securities Act, and
      to
      comply fully with the applicable provisions of Rules 424 under the Securities
      Act in a timely manner; and comply with the provisions of the Securities Act
      with respect to the disposition of all Transfer Restricted Securities covered
      by
      the Shelf Registration Statement during the applicable period in accordance
      with
      the intended method or methods of distribution by the sellers thereof set forth
      in the Shelf Registration Statement or supplement to the
      Prospectus.

     

    (iv)  advise
      the selling Holders and any Initial Purchaser that has provided in writing
      to
      the Company a telephone or facsimile number and address for notices, promptly
      and, if requested by such selling Holders or Initial Purchaser, to confirm
      such
      advice in writing (which notice pursuant to clauses (B) through (D) below shall
      be accompanied by an instruction to suspend the use of the Prospectus until
      the
      Company shall have remedied the basis for such suspension):

     

    (A)  when
      the
      Prospectus or any Prospectus supplement or post-effective amendment has been
      filed, and, with respect to the Shelf Registration Statement or any
      post-effective amendment thereto, when the same has become
      effective,

     

    (B)  of
      any
      request by the Commission for amendments to the Shelf Registration Statement
      or
      amendments or supplements to the Prospectus or for additional information
      relating thereto; provided,
      however,
      that
      notice of any such request provided to the Depository Trust Company and the
      Trustee shall be deemed to be provided to all of the Notice Holders and the
      Initial Purchasers,

     

    (C)  of
      the
      issuance by the Commission of any stop order suspending the effectiveness of
      the
      Shelf Registration Statement under the Securities Act or of the suspension
      by
      any state securities commission of the qualification of the Transfer Restricted
      Securities for offering or sale in any jurisdiction, or the threatening or
      initiation of any proceeding for any of the preceding purposes, or

     

    (D)  of
      the
      happening of any event or the failure of any event to occur or the discovery
      of
      any facts, during the Effectiveness Period, which makes any statement made
      in a
      Shelf Registration Statement, the related Prospectus, any amendment or
      supplement thereto or any document incorporated by reference therein untrue
      in
      any material respect or which causes such document(s) to omit to state a
      material fact necessary in order to make the statements therein (in the case
      of
      the Prospectus, in the light of the circumstances under which they were made)
      not misleading.

     

    (v)  if
      at any
      time the Commission shall issue any stop order suspending the effectiveness
      of
      the Shelf Registration Statement, or any state securities commission or other
      regulatory authority shall issue an order suspending the qualification or
      exemption from qualification of the Transfer Restricted Securities under state
      securities or Blue Sky laws, use its reasonable best efforts to obtain the
      withdrawal or lifting of such order at the earliest possible time and shall
      provide to each Holder who is named in the Shelf Registration Statement prompt
      notice of the withdrawal of any such order.

     

    (vi)  make
      available at reasonable times for inspection by one or more representatives
      of
      the selling Holders, designated in writing by a Majority of Holders whose
      Transfer Restricted Securities are included in the Shelf Registration Statement,
      and any attorney or accountant retained by such selling Holders and any Initial
      Purchaser participating in any disposition pursuant to the Shelf Registration
      Statement, all financial and other records, pertinent corporate documents and
      properties of the Company as shall be reasonably necessary to enable them to
      conduct a reasonable investigation within the meaning of Section 11 of the
      Securities Act, and cause the Company’s officers, directors, managers and
      employees to supply all information reasonably requested by any such
      representative or representatives of the selling Holders, attorney or accountant
      in connection therewith; provided
      that,
      subject to Section 4(b)(i), (x) appropriate safeguards are in place to protect
      the confidentiality of such information and (y) in no event shall the Company
      be
      required to disclose any proprietary information to any competitor or agent
      thereof. 

     

    (vii)  if
      requested by any selling Holders or the Representatives, promptly incorporate
      into the Shelf Registration Statement or Prospectus, pursuant to a supplement
      or
      post-effective amendment if necessary, such information as such selling Holders
      may reasonably request to have included therein, including, without limitation,
      information relating to the “Plan of Distribution” of the Transfer Restricted
      Securities.

     

    (viii)  deliver
      to each selling Holder, without charge, as many copies of the Prospectus
      (including each preliminary Prospectus) and any amendment or supplement thereto
      as such Persons reasonably may request; subject to any notice by the Company
      in
      accordance with this Section 4(b) of the existence of any fact or event of
      the
      kind described in Section 4(b)(iii)(D), the Company hereby consents to the
      use
      of the Prospectus and any amendment or supplement thereto by each of the selling
      Holders in connection with the offering and the sale of the Transfer Restricted
      Securities covered by the Prospectus or any amendment or supplement
      thereto.

     

    (ix)  before
      any public offering of Transfer Restricted Securities, cooperate with the
      selling Holders and their counsel in connection with the registration and
      qualification of the Transfer Restricted Securities under the securities or
      Blue
      Sky laws of such jurisdictions in the United States as the selling Holders
      may
      reasonably request and do any and all other acts or things necessary or
      advisable to enable the disposition in such jurisdictions of the Transfer
      Restricted Securities covered by the Shelf Registration Statement; provided,
      however,
      that
      the Company shall not be required (A) to register or qualify as a foreign
      corporation or a dealer of securities in any jurisdiction where it would not
      otherwise be required to qualify but for this Section 4(b)(ix) or to take any
      action that would subject it to the service of process in any jurisdiction
      where
      it would not otherwise be subject to such service of process or (B) to subject
      itself to general or unlimited service of process or to taxation in any such
      jurisdiction if it is not then so subject.

     

    (x)  unless
      any Transfer Restricted Securities shall be in book-entry form only, cooperate
      with the selling Holders to facilitate the timely preparation and delivery
      of
      certificates representing Transfer Restricted Securities to be sold and not
      bearing any restrictive legends (unless required by applicable securities laws);
      and enable such Transfer Restricted Securities to be in such denominations
      and
      registered in such names as the Holders may request at least two Business Days
      before any sale of Transfer Restricted Securities.

     

    (xi)  use
      its
      reasonable best efforts to cause the Transfer Restricted Securities covered
      by
      the Shelf Registration Statement to be registered with or approved by such
      other
      U.S. governmental agencies or authorities as may be necessary to enable the
      seller or sellers thereof to consummate the disposition of such Transfer
      Restricted Securities.

     

    (xii)  subject
      to Section 4(b)(ii) hereof, if any fact or event contemplated by Section
      4(b)(iv)(B) through (D) hereof shall exist or have occurred, use its reasonable
      best efforts to prepare a supplement or post-effective amendment to the Shelf
      Registration Statement or related Prospectus or any document incorporated
      therein by reference or file any other required document so that, as thereafter
      delivered to the purchasers of Transfer Restricted Securities, the Prospectus
      will not contain an untrue statement of a material fact or omit to state any
      material fact required to be stated therein or necessary to make the statements
      therein, in light of the circumstances in which they are made, not
      misleading.

     

    (xiii)  provide
      CUSIP numbers for all Transfer Restricted Securities not later than the
      effective date of the Shelf Registration Statement and provide the Trustee
      under
      the Indenture with certificates for the Notes that are in a form eligible for
      deposit with The Depository Trust Company.

     

    (xiv)  cooperate
      and assist in any filings required to be made with the NASD and in the
      performance of any due diligence investigation by any underwriter that is
      required to be undertaken in accordance with the rules and regulations of the
      NASD.

     

    (xv)  otherwise
      use its reasonable best efforts to comply with all applicable rules and
      regulations of the Commission and all reporting requirements under the rules
      and
      regulations of the Exchange Act.

     

    (xvi)  make
      generally available to its security holders an earnings statement satisfying
      the
      provisions of Section 11(a) of the Securities Act and Rule 158 of the Securities
      Act as soon as practicable after the effective date of the Shelf Registration
      Statement and in any event no later than 45 days after the end of a 12-month
      period (or 90 days, if such period is a fiscal year) beginning with the first
      month of the Company’s first fiscal quarter commencing after the effective date
      of the Shelf Registration Statement.

     

    (xvii)  cause
      the
      Indenture to be qualified under the TIA not later than the effective date of
      the
      Shelf Registration Statement required by this Agreement, and, in connection
      therewith, cooperate with the Trustee and the holders of Notes to effect such
      changes to the Indenture as may be required for such Indenture to be so
      qualified in accordance with the terms of the TIA; and execute and use its
      reasonable best efforts to cause the Trustee thereunder to execute all documents
      that may be required to effect such changes and all other forms and documents
      required to be filed with the Commission to enable such Indenture to be so
      qualified in a timely manner. In the event that any such amendment or
      modification referred to in this Section 4(b)(xvii) involves the appointment
      of
      a new trustee under the Indenture, the Company shall appoint a new trustee
      thereunder pursuant to the applicable provisions of the Indenture.

     

    (xviii)  cause
      all
      Common Stock covered by the Shelf Registration Statement to be listed or quoted,
      as the case may be, on each securities exchange or automated quotation system
      on
      which Common Stock is then listed or quoted.

     

    (xix)  provide
      to each Holder upon written request each document filed with the Commission
      pursuant to the requirements of Section 13 and Section 15 of the Exchange Act
      after the effective date of the Shelf Registration Statement, unless such
      document is available through the Commission’s EDGAR system.

     

    (xx)  use
      its
      reasonable best efforts if the Notes have been rated prior to the initial sale
      of such Notes, to confirm such ratings will apply to the Notes covered by the
      Shelf Registration Statement.

     

    (xxi)  in
      connection with any underwritten offering conducted pursuant to Section 8
      hereof, make such representations and warranties to the Holders of Securities
      registered thereunder and the underwriters, in form, substance and scope as
      are
      customarily made by issuers to underwriters in primary underwritten offerings
      and covering matters including, but not limited to, those set forth in the
      Purchase Agreement;

     

    (xxii)  in
      connection with any underwritten offering conducted pursuant to Section 8
      hereof, obtain opinions of counsel to the Company and updates thereof (which
      counsel and opinions (in form, scope and substance) shall be reasonably
      satisfactory to the Managing Underwriters) addressed to each selling Holder
      and
      the underwriters, if any, covering such matters as are customarily covered
      in
      opinions requested in underwritten offerings and such other matters as may
      be
      reasonably requested by such Holders and underwriters;

     

    (xxiii)  in
      connection with any underwritten offering conducted pursuant to Section 8,
      hereof, obtain “comfort” letters and updates thereof from the independent
      certified public accountants of the Company (and, if necessary, any other
      independent certified public accountants of any subsidiary of the Company or
      of
      any business acquired by the Company for which financial statements and
      financial data are, or are required to be, included in the Shelf Registration
      Statement), addressed to each selling Holder of Securities registered thereunder
      and the underwriters, in customary form and covering matters of the type
      customarily covered in “comfort” letters in connection with primary underwritten
      offerings;

     

    (xxiv)  in
      connection with any underwritten offering conducted pursuant to Section 8
      hereof, deliver such documents and certificates as may be reasonably requested
      by the Majority of Holders and the Managing Underwriters, including those to
      evidence compliance with Section 4(b)(ii) and 4(b)(xii) hereof and with any
      customary conditions contained in the Purchase Agreement or other agreement
      entered into by the Company;

     

    (xxv)  in
      connection with underwritten offering conducted pursuant to Section 8 hereof,
      the Company shall, if requested, promptly include or incorporate in a Prospectus
      supplement or post-effective amendment to the Shelf Registration Statement
      such
      information as the Managing Underwriters reasonably agree should be included
      therein and to which the Company does not reasonably object and shall make
      all
      required filings of such Prospectus supplement or post-effective amendment
      as
      soon as practicable after it is notified of the matters to be included or
      incorporated in such Prospectus supplement or post-effective amendment;

     

    (xxvi) use
      its
      reasonable best efforts to take all other steps necessary to effect the
      registration of the Notes covered by the Shelf Registration Statement;
      and

     

    (xxvii) enter
      into customary agreements (including, if requested, an underwriting agreement
      in
      customary form) and take all other appropriate actions in order to expedite
      or
      facilitate the registration or the disposition of the Notes, and in connection
      therewith, if an underwriting agreement is entered into, cause the same to
      contain indemnification provisions and procedures no less favorable than those
      set forth in Section 6 hereof.

     

    The
      actions set forth in clauses (xxi), (xxii), (xxiii) and (xxiv) of this Section
      4(b) shall be performed at (a) the effectiveness of the Shelf Registration
      Statement and each post-effective amendment thereto; and (b) each closing under
      any underwriting or similar agreement as and to the extent required
      thereunder.

     

    (c)  Each
      Holder agrees by acquisition of a Transfer Restricted Security that, upon
      receipt of any notice (a “Suspension
      Notice”)
      from
      the Company under Section 4(b)(ii) or the existence of any fact of the kind
      described in Section 4(b)(iv)(D) hereof, such Holder will forthwith discontinue
      disposition of Transfer Restricted Securities pursuant to the Shelf Registration
      Statement until:

     

    (i)  such
      Holder has received copies of the supplemented or amended Prospectus
      contemplated by Section 4(b)(xii) hereof; or

     

    (ii)  such
      Holder is advised in writing by the Company that the use of the Prospectus
      may
      be resumed, and has received copies of any additional or supplemental filings
      that are incorporated by reference in the Prospectus; provided,
      however,
      that
      any such document filed and publicly available through the Commission’s EDGAR
      system shall be deemed to have been received by such Holder.

     

    If
      so
      directed by the Company, each Holder will deliver to the Company (at the
      Company’s expense) all copies, other than permanent file copies then in such
      Holder’s possession, of the Prospectus covering such Transfer Restricted
      Securities that was current at the time of receipt of such notice of
      suspension.

     

    (d)  Each
      Holder agrees by acquisition of a Transfer Restricted Security, that no Holder
      shall be entitled to sell any of such Transfer Restricted Securities pursuant
      to
      a Shelf Registration Statement; or to receive a Prospectus relating thereto,
      unless such Holder has furnished the Company with a Notice and Questionnaire
      as
      required pursuant to Section 2(e) hereof (including the information required
      to
      be included in such Notice and Questionnaire) and the information set forth
      in
      the following two sentences. The Company may require each Notice Holder of
      Transfer Restricted Securities to be sold pursuant to the Shelf Registration
      Statement to furnish to the Company such information regarding the Holder and
      the distribution of such Transfer Restricted Securities as the Company may
      from
      time to time reasonably require for inclusion in such Registration Statement.
      Each Notice Holder agrees promptly to furnish to the Company all information
      required to be disclosed in order to make the information previously furnished
      to the Company by such Notice Holder not misleading and any other information
      regarding such Notice Holder and the distribution of such Transfer Restricted
      Securities as the Company may from time to time reasonably request in writing.
      Any sale of any Transfer Restricted Securities by any Holder shall constitute
      a
      representation and warranty by such Holder that the information relating to
      such
      Holder and its plan of distribution is as set forth in the Prospectus delivered
      by such Holder in connection with such disposition, that such Prospectus does
      not as of the time of such sale contain any untrue statement of a material
      fact
      relating to or provided by such Holder or its plan of distribution and that
      such
      Prospectus does not as of the time of such sale omit to state any material
      fact
      relating to or provided by such Holder or its plan of distribution necessary
      to
      make the statements in such Prospectus, in the light of the circumstances under
      which they were made not misleading. The Company may exclude from such Shelf
      Registration Statement the Notes of any Holder that unreasonably fails to
      furnish such information within a reasonable time after receiving such
      request.

     

    5.  Registration
      Expenses.
      

     

    All
      expenses incident to the Company’s performance of or compliance with this
      Agreement shall be borne by the Company regardless of whether a Shelf
      Registration Statement becomes effective, including, without limitation:

     

    (a)  all
      registration and filing fees and expenses (including filings made with the
      NASD);

     

    (b)  all
      fees
      and expenses of compliance with federal securities and state Blue Sky or
      securities laws; 

     

    (c)  all
      expenses of printing (including printing of Prospectuses and certificates for
      any Common Stock to be issued upon conversion of the Notes) and the Company’s
      expenses for messenger and delivery services and telephone; 

     

    (d)  all
      fees
      and disbursements of counsel to the Company;

     

    (e)  all
      application and filing fees in connection with listing (or authorizing for
      quotation) the Common Stock on a national securities exchange or automated
      quotation system pursuant to the requirements hereof; and 

     

    (f)  all
      fees
      and disbursements of independent certified public accountants of the
      Company.

     

    The
      Company shall bear its internal expenses (including, without limitation, all
      salaries and expenses of its officers and employees performing legal, accounting
      or other duties), the expenses of any annual audit and the fees and expenses
      of
      any Person, including special experts, retained by the Company. The Company
      shall pay all expenses customarily borne by issuers in an underwritten offering
      to the extent set forth in Section 8(c) hereof.

     

    6.  Indemnification
      And Contribution.
      

     

    (a)  The
      Company agrees to indemnify and hold harmless each Holder of Transfer Restricted
      Securities (including each Initial Purchaser in its capacity as such), its
      directors, officers, and employees, Affiliates and agents and each Person,
      if
      any, who controls any such Holder within the meaning of the Securities Act
      or
      the Exchange Act (each, an “Indemnified
      Holder”),
      against any loss, claim, damage, liability or expense, joint or several, or
      any
      action in respect thereof (including, but not limited to, any loss, claim,
      damage, liability or action relating to resales of the Transfer Restricted
      Securities), to which such Indemnified Holder may become subject, insofar as
      any
      such loss, claim, damage, liability or action arises out of, or is based
      upon:

     

    (i)  any
      untrue statement or alleged untrue statement of a material fact contained in
      (A)
      the Shelf Registration Statement at the time that it becomes or is declared
      effective or in any amendment thereof, in any Prospectus, or in any amendment
      or
      supplement thereto or any issuer free writing prospectus in respect thereof,
      or
      (B) any Blue Sky application or other document or any amendment or supplement
      thereto prepared or executed by the Company (or based upon written information
      furnished by or on behalf of the Company expressly for use in such Blue Sky
      application or other document or amendment or supplement) filed in any
      jurisdiction specifically for the purpose of qualifying any or all of the
      Transfer Restricted Securities under the securities law of any state or other
      jurisdiction (such application or document being hereinafter called a
“Blue
      Sky Application”);
      or

     

    (ii)  the
      omission or alleged omission to state therein any material fact required to
      be
      stated therein or necessary to make the statements therein, in the light of
      the
      circumstances under which they were made, not misleading,

     

    and
      agrees to reimburse each Indemnified Holder promptly upon demand for any legal
      or other expenses reasonably incurred by such Indemnified Holder in connection
      with investigating, defending, settling, compromising or paying any such loss,
      claim, damage, liability, expense or action; provided,
      however,
      that the
      Company shall not be liable in any such case to the extent that any such loss,
      claim, damage, liability or expense arises out of, or is based upon, any untrue
      statement or alleged untrue statement or omission or alleged omission made
      in
      reliance upon and in conformity with written information furnished to the
      Company by or on behalf of such Holder (or its related Indemnified Holder)
      specifically for use therein. The foregoing indemnity agreement is in addition
      to any liability which the Company may otherwise have. 

     

    The
      Company also agrees to indemnify as provided in this Section 6(a) or contribute
      as provided in Section 6(e) hereof to Losses (as defined below) of each
      underwriter, if any, of Notes registered under a Shelf Registration Statement,
      their directors, officers, employees, Affiliates or agents and each Person
      who
      controls such underwriter on substantially the same basis as that of the
      indemnification of the Initial Purchasers and the selling Holders provided
      in
      this Section 6(a) and shall, if requested by any Holder, enter into an
      underwriting agreement reflecting such agreement, as provided in Section
      4(b)(xxvi) hereof.

     

    (b)  Each
      Holder, severally and not jointly, agrees to indemnify and hold harmless the
      Company, its directors, officers, employees and agents and each Person, if
      any,
      who controls the Company within the meaning of the Securities Act or the
      Exchange Act to the same extent as the foregoing indemnity from the Company
      to
      each such Holder, but only with reference to written information relating to
      such Holder furnished to the Company by or on behalf of such Holder specifically
      for inclusion in the documents referred to in the foregoing indemnity;
provided,
      however,
      that no
      such Holder shall be liable for any indemnity claims hereunder in excess of
      the
      amount of net proceeds received by such Holder from the sale of Transfer
      Restricted Securities pursuant to such document(s). This indemnity agreement
      set
      forth in this Section shall be in addition to any liabilities which any such
      Holder may otherwise have.

     

    (c)  Promptly
      after receipt by an indemnified party under this Section 6 of notice of any
      claim or the commencement of any action, the indemnified party shall, if a
      claim
      in respect thereof is to be made against the indemnifying party under this
      Section 6, notify the indemnifying party in writing of the claim or the
      commencement of that action; provided,
      however,
      that the
      failure to notify the indemnifying party (i) shall not relieve it from any
      liability which it may have under paragraphs (a) or (b) of this Section unless
      and to the extent it did not otherwise learn of such action and has been
      materially prejudiced (through the forfeiture of substantive rights and
      defenses) by such failure and (ii) shall not, in any event, relieve it from
      any
      liability which it may have to an indemnified party otherwise than under
      paragraphs (a) or (b) of this Section 6. If any such claim or action shall
      be
      brought against an indemnified party, and it shall notify the indemnifying
      party
      thereof, the indemnifying party shall be entitled to participate therein and,
      to
      the extent that it wishes, jointly with any other similarly notified
      indemnifying party, to assume the defense thereof with counsel reasonably
      satisfactory to the indemnified party. After notice from the indemnifying party
      to the indemnified party of its election to assume the defense of such claim
      or
      action, the indemnifying party shall not be liable to the indemnified party
      under this Section 6 for any legal or other expenses subsequently incurred
      by
      the indemnified party in connection with the defense thereof other than
      reasonable costs of investigation; provided,
      however,
      that the
      Holders shall have the right to employ a single counsel to represent jointly
      the
      Holders and their officers, employees and controlling Persons who may be subject
      to liability arising out of any claim in respect of which indemnity may be
      sought by the Holders against the Company under this Section 6 if the Holders
      seeking indemnification shall have been advised by legal counsel that there
      may
      be one or more legal defenses available to such Holders and their respective
      officers, employees and controlling Persons that are different from or
      additional to those available to the Company, and in that event, the reasonable
      fees and expenses of such separate counsel shall be paid by the Company.

     

    (d)  The
      indemnifying party under this Section shall not be liable for any settlement
      of
      any proceeding effected without its written consent, which shall not be withheld
      unreasonably, but if settled with such consent or if there is a final judgment
      for the plaintiff, the indemnifying party agrees to indemnify the indemnified
      party against any loss, claim, damage, liability or expense by reason of such
      settlement or judgment. Notwithstanding the foregoing sentence, if at any time
      an indemnified party shall have requested an indemnifying party to reimburse
      the
      indemnified party for fees and expenses of counsel as contemplated by Section
      6(c) hereof, the indemnifying party agrees that it shall be liable for any
      settlement of any proceeding effected without its written consent if (i) such
      settlement is entered into more than 30 days after receipt by such indemnifying
      party of the aforesaid request, (ii) such indemnifying party shall have received
      notice of the terms of such settlement at least 30 days prior to such settlement
      being entered into, and (iii) such indemnifying party shall not have reimbursed
      the indemnified party in accordance with such request prior to the date of
      such
      settlement. Notwithstanding the immediately preceding sentence, if
      at any
      time an indemnified party shall have requested an indemnifying party to
      reimburse the indemnified party for fees and expenses of counsel,
      an
      indemnifying party shall not be liable for any settlement effected without
      its
      consent if such indemnifying party (i) reimburses such indemnified party in
      accordance with such request to the extent it considers such request to be
      reasonable and (ii) provides written notice to the indemnified party
      substantiating the unpaid balance as unreasonable, in each case prior to the
      date of such settlement. No indemnifying party shall, without the prior written
      consent of the indemnified party, effect any settlement, compromise or consent
      to the entry of judgment in any pending or threatened action, suit or proceeding
      in respect of which any indemnified party is or could have been a party and
      indemnity was or could have been sought hereunder by such indemnified party,
      unless such settlement, compromise or consent (x) includes an unconditional
      release of such indemnified party from all liability on claims that are the
      subject matter of such action, suit or proceeding and (y) does not include
      a
      statement as to or an admission of fault, culpability or a failure to act by
      or
      on behalf of any indemnified party.

     

    (e)  If
      the
      indemnification provided for in this Section 6 shall for any reason be
      unavailable or insufficient to hold harmless an indemnified party under Section
      6(a) or 6(b) in respect of any loss, claim, damage or liability (or action
      in
      respect thereof) referred to therein, each indemnifying party shall, in lieu
      of
      indemnifying such indemnified party, contribute to the aggregate amount paid
      or
      payable by such indemnified party as a result of such loss, claim, damage or
      liability (including legal or other expenses reasonably incurred in connection
      with investigating or defending any loss, claim, liability, damage or action)
      (collectively “Losses”)
      (or
      action in respect thereof):

     

    (i)  in
      such
      proportion as is appropriate to reflect the relative benefits received by the
      Company from the offering and sale of the Transfer Restricted Securities on
      the
      one hand and a Holder with respect to the sale by such Holder of the Transfer
      Restricted Securities on the other, or

     

    (ii)  if
      the
      allocation provided by Section (6)(e)(i) is not permitted by applicable law,
      in
      such proportion as is appropriate to reflect not only the relative benefits
      referred to in Section 6(e)(i) but also the relative fault of the Company on
      the
      one hand and the Holders on the other in connection with the statements or
      omissions or alleged statements or alleged omissions that resulted in such
      loss,
      claim, damage or liability (or action in respect thereof), as well as any other
      relevant equitable considerations.

     

    The
      relative benefits received by the Company on the one hand and a Holder on the
      other with respect to such offering and such sale shall be deemed to be in
      the
      same proportion as the total net proceeds from the offering of the Notes
      purchased under the Purchase Agreement (before deducting expenses) received
      by
      the Company, on the one hand, bear to the total proceeds received by such Holder
      with respect to its sale of Transfer Restricted Securities on the other. The
      relative fault of the parties shall be determined by reference to whether the
      untrue or alleged untrue statement of a material fact or the omission or alleged
      omission to state a material fact relates to information supplied by the Company
      on the one hand or the Holders on the other, the intent of the parties and
      their
      relative knowledge, access to information and opportunity to correct or prevent
      such statement or omission. The Company and each Holder agree that it would
      not
      be just and equitable if the amount of contribution pursuant to this Section
      6(e) were determined by pro
      rata
      allocation or by any other method of allocation that does not take into account
      the equitable considerations referred to in the first sentence of this paragraph
      (e).

     

    The
      amount paid or payable by an indemnified party as a result of the loss, claim,
      damage or liability, or action in respect thereof, referred to above in this
      Section 6 shall be deemed to include, for purposes of this Section 6, any legal
      or other expenses reasonably incurred by such indemnified party in connection
      with investigating or defending or preparing to defend any such action or
      claim.

     

    No
      Person
      guilty of fraudulent misrepresentation (within the meaning of Section 11(f)
      of
      the Securities Act) shall be entitled to contribution from any Person who was
      not guilty of such fraudulent misrepresentation. The Holders’ obligations to
      contribute as provided in this Section 6(e) are several and not
      joint.

     

    (f)  The
      provisions of this Section 6 shall remain in full force and effect, regardless
      of any investigation made by or on behalf of any Holder or the Company or any
      of
      the officers, directors or controlling Persons referred to in Section 6 hereof,
      and will survive the sale by a Holder of Transfer Restricted
      Securities.

     

    7.  Rule
      144A and Rule 144. The
      Company agrees with each Holder, for so long as any Transfer Restricted
      Securities remain outstanding and during any period in which the Company (i)
      is
      not subject to Section 13 or 15(d) of the Exchange Act, to make available,
      upon
      request of any Holder, to such Holder or beneficial owner of Transfer Restricted
      Securities in connection with any sale thereof and any prospective purchaser
      of
      such Transfer Restricted Securities designated by such Holder or beneficial
      owner, the information required by Rule 144A(d)(4) under the Securities Act
      in
      order to permit resales of such Transfer Restricted Securities pursuant to
      Rule
      144A, and (ii) is subject to Section 13 or 15 (d) of the Exchange Act, to make
      all filings required thereby in a timely manner in order to permit resales
      of
      such Transfer Restricted Securities pursuant to Rule 144.

     

    8.  Underwritten
      Registrations. 

     

    (a)  Any
      Holder of Transfer Restricted Securities who desires to do so may sell Transfer
      Restricted Securities (in whole or in part) in an underwritten offering;
provided
      that (i)
      the Electing Holders of at least 33-1/3% in aggregate principal amount of the
      Transfer Restricted Securities then covered by the Shelf Registration Statement
      shall request such an offering and (ii) at least such aggregate principal amount
      of such Transfer Restricted Securities shall be included in such offering;
      and
provided,
      further,
      that
      the Company shall not be obligated to participate in more than one underwritten
      offering during the Effectiveness Period. Upon receipt of such a request, the
      Company shall provide all Holders of Transfer Restricted Securities written
      notice of the request, which notice shall inform such Holders that they have
      the
      opportunity to participate in the offering. If any of the Transfer Restricted
      Securities covered by the Shelf Registration Statement are to be sold in an
      underwritten offering, the Managing Underwriters shall be selected by the
      Majority Holders.

     

    (b)  No
      Person
      may participate in any underwritten offering pursuant to the Shelf Registration
      Statement unless such Person (i) agrees to sell such Person’s Notes on the basis
      reasonably provided in any underwriting arrangements approved by the Persons
      entitled hereunder to approve such arrangements; (ii) completes and executes
      all
      questionnaires, powers of attorney, indemnities, underwriting agreements and
      other documents reasonably required under the terms of such underwriting
      arrangements; and (iii) if such Holder is not then a Notice Holder, such Holder
      returns a completed and signed Notice and Questionnaire to the Company in
      accordance with Section 2(f) hereof within a reasonable amount of time before
      such underwritten offering.

     

    (c)  The
      Holders participating in any underwritten offering shall be responsible for
      any
      underwriting discounts and commissions and fees and, subject to Section 5
      hereof, expenses of their own counsel. The Company shall pay all expenses
      customarily borne by issuers in an underwritten offering, including but not
      limited to filing fees, the fees and disburse-ments of its counsel and
      independent public accountants and any printing expenses incurred in connection
      with such underwritten offering. Notwithstanding the foregoing or the provisions
      of Section 4(b)(xxiv) hereof, upon receipt of a request from the Managing
      Underwriter or a representative of holders of a majority of the Transfer
      Restricted Securities to be included in an underwritten offering to prepare
      and
      file an amendment or supplement to the Shelf Registration Statement and
      Prospectus in connec-tion with an underwritten offering, the Company may delay
      the filing of any such amend-ment or supplement for up to 90 days if the Board
      of Directors of the Company shall have determined in good faith that the Company
      has a bona fide business reason for such delay.

     

    9.  Miscellaneous.
      

     

    (a)  Remedies.
      The
      Company acknowledges and agrees that any failure by the Company to comply with
      its obligations under Section 2 hereof may result in material irreparable injury
      to the Initial Purchasers or the Holders for which there is no adequate remedy
      at law, that it will not be possible to measure damages for such injuries
      precisely, and that, in the event of any such failure, in addition to being
      entitled to exercise all rights provided to it herein, in the Indenture or
      in
      the Purchase Agreement or granted by law, including recovery of liquidated
      or
      other damages, the Initial Purchasers or any Holder may obtain such relief
      as
      may be required to specifically enforce the Company’s obligations under Section
      2 hereof. The Company further agrees to waive the defense in any action for
      specific performance that a remedy at law would be adequate.

     

    (b)  Actions
      Affecting Transfer Restricted Securities.
      The
      Company shall not, directly or indirectly, take any action with respect to
      the
      Transfer Restricted Securities as a class that would adversely affect the
      ability of the Holders of Transfer Restricted Securities to include such
      Transfer Restricted Securities in a registration undertaken pursuant to this
      Agreement.

     

    (c)  No
      Inconsistent Agreements.
      The
      Company has not, as of the date hereof, entered into, nor shall it, on or after
      the date hereof, enter into, any agreement with respect to its securities that
      is inconsistent with the rights granted to the Holders in this Agreement or
      otherwise conflicts with the provisions hereof. In addition, the Company shall
      not grant to any of its securityholders (other than the Holders of Transfer
      Restricted Securities in such capacity) the right to include any of its
      securities in the Shelf Registration Statement provided for in this Agreement
      other than the Transfer Restricted Securities.

     

    (d)  Amendments
      and Waivers.
      This
      Agreement may not be amended, modified or supplemented, and waivers or consents
      to or departures from the provisions hereof may not be given, unless the Company
      has obtained the written consent of a Majority of Holders; provided,
      however,
      that
      with respect to any matter that directly or indirectly adversely affects the
      rights of any Initial Purchaser hereunder, the Company shall obtain the written
      consent of each such Initial Purchaser against which such amendment,
      qualification, supplement, waiver or consent is to be effective. Notwithstanding
      the foregoing (except the foregoing proviso), a waiver or consent to depart
      from
      the provisions hereof with respect to a matter that relates exclusively to
      the
      rights of Holders whose securities are being sold pursuant to a Shelf
      Registration Statement and does not directly or indirectly adversely affect
      the
      rights of other Holders, may be given by the Majority of Holders, determined
      on
      the basis of Notes being sold rather than registered under such Shelf
      Registration Statement.

     

    (e)  Notices.
      All
      notices and other communications provided for or permitted hereunder shall
      be
      made in writing by hand delivery, first class mail (registered or certified,
      return receipt requested), facsimile transmission, or air courier guaranteeing
      overnight delivery:

     

    (i)  if
      to a
      Holder, at the address set forth on the records of the Registrar (as defined
      in
      the Indenture) or the transfer agent of the Common Stock, as the case may be;
      and

     

    (ii)  if
      to the
      Company, initially at its address set forth in the Purchase
      Agreement,

     

    With
      a
      copy to (which shall not constitute notice):

     

    Drinker
      Biddle & Reath

    One
      Logan
      Square

    18th
      and
      Cherry Streets

    Philadelphia,
      PA 19103-6996

    Facsimile:
      (215) 988-2757

    Attention:
      F. Douglas Raymond, III

    

    (iii)  If
      to the
      Initial Purchasers at their addresses set forth in the Purchase Agreement,
      with
      a copy to (which shall not constitute notice):

     

    Davis
      Polk & Wardwell

    450
      Lexington Avenue

    New
      York,
      NY 10017

    Facsimile:
      (212) 450-3135

    Attention:
      Deanna L. Kirkpatrick

    

    All
      such
      notices and communications shall be deemed to have been duly given: at the
      time
      delivered by hand, if personally delivered; five Business Days after being
      deposited in the mail, postage prepaid, if mailed; when receipt acknowledged,
      if
      transmitted by facsimile; and on the next Business Day, if timely delivered
      to
      an air courier guaranteeing overnight delivery.

     

    Any
      party
      hereto may change the address for receipt of communications by giving written
      notice to the others.

     

    (f)  Successors
      and Assigns.
      This
      Agreement shall inure to the benefit of and be binding upon the successors
      and
      assigns of each of the parties, including without limitation and without the
      need for an express assignment, subsequent Holders of Transfer Restricted
      Securities. The Company hereby agrees to extend the benefit of this Agreement
      to
      any Holder and any such Holder may specifically enforce the provisions of this
      Agreement as if an original party hereto.

     

    (g)  Counterparts.
      This
      Agreement may be executed in any number of counterparts and by the parties
      hereto in separate counterparts, each of which when so executed shall be deemed
      to be an original and all of which taken together shall constitute one and
      the
      same agreement.

     

    (h)  Jurisdiction.
      The
      Company agrees that any suit, action or proceeding against the Company brought
      by any Holder or Initial Purchaser, the directors, officers, employees,
      Affiliates and agents of any Holder or Initial Purchaser, or by any Person
      who
      controls any Holder or Initial Purchaser, arising out of or based upon this
      Agreement or the transactions contemplated hereby may be instituted in any
      State
      or U.S. federal court in The City of New York and County of New York, and waives
      any objection which it may now or hereafter have to the laying of venue of
      any
      such proceeding, and irrevocably submits to the non-exclusive jurisdiction
      of
      such courts in any suit, action or proceeding. The Company hereby appoints
      Corporation Service Company as its authorized agent (the “Authorized
      Agent”)
      upon
      whom process may be served in any suit, action or proceeding arising out of
      or
      based upon this Agreement or the transactions contemplated herein which may
      be
      instituted in any State or U.S. federal court in The City of New York and County
      of New York, by any Holder or Initial Purchaser, the directors, officers,
      employees, Affiliates and agents of any Holder or Initial Purchaser, or by
      any
      person who controls any Holder or Initial Purchaser, and expressly accepts
      the
      non-exclusive jurisdiction of any such court in respect of any such suit, action
      or proceeding. The Company hereby represents and warrants that the Authorized
      Agent has accepted such appointment and has agreed to act as said agent for
      service of process, and the Company agrees to take any and all action, including
      the filing of any and all documents that may be necessary to continue such
      appointment in full force and effect as aforesaid. Service of process upon
      the
      Authorized Agent shall be deemed, in every respect, effective service of process
      upon the Company. The Company further agrees to take any and all action,
      including the execution and filing of any and all such documents and
      instruments, as may be necessary to continue such designation and appointment
      in
      full force and effect so long as any of the Securities shall be outstanding.
      To
      the extent that the Company may acquire any immunity from jurisdiction of any
      court or from any legal process (whether through service of notice, attachment
      prior to judgment, attachment in aid of execution, execution or otherwise)
      with
      respect to itself or its property, it hereby irrevocably waives such immunity
      in
      respect of this Agreement, to the fullest extent permitted by law.
      Notwithstanding the foregoing, any action arising out of or based upon this
      Agreement may be instituted by any Holder or Initial Purchaser, the directors,
      officers, employees, Affiliates and agents of any Holder or Initial Purchaser,
      or by any Person who controls any Holder or Initial Purchaser, in any court
      of
      competent jurisdiction.

     

    (i)  Notes
      Held by the Company or Their Affiliates.
      Whenever
      the consent or approval of Holders of a specified percentage of Transfer
      Restricted Securities is required hereunder, Transfer Restricted Securities
      held
      by the Company or its Affiliates (other than subsequent Holders if such
      subsequent Holders are deemed to be Affiliates solely by reason of their holding
      of such Transfer Restricted Securities) shall not be counted in determining
      whether such consent or approval was given by the Holders of such required
      percentage.

     

    (j)  Headings.
      The
      headings in this Agreement are for convenience of reference only and shall
      not
      limit or otherwise affect the meaning hereof.

     

    (k)  Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the law of
      the
      State of New York.

     

    (l)  Severability.
      If any
      one or more of the provisions contained herein, or the application thereof
      in
      any circumstance, is held invalid, illegal or unenforceable, the validity,
      legality and enforceability of any such provision in every other respect and
      of
      the remaining provisions contained herein shall not be affected or impaired
      thereby, it being intended that all of the rights and privileges of the parties
      shall be enforceable to the fullest extent permitted by law.

     

    (m)  Entire
      Agreement.
      This
      Agreement is intended by the parties as a final expression of their agreement
      and intended to be a complete and exclusive statement of the agreement and
      understanding of the parties hereto in respect of the subject matter contained
      herein. There are no restrictions, promises, warranties or undertakings, other
      than those set forth or referred to herein with respect to the registration
      rights granted by the Company with respect to the Transfer Restricted
      Securities. This Agreement supersedes all prior agreements and understandings
      between the parties with respect to such subject matter.

     

    

     

    
      
        
          

        

         

      

      
         

        
          

        

      

      
         

        
          

           

        

      

    

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

     

    
      	
              CHARMING
                SHOPPES, INC.

            
	 
	 
	 
	
              By________________________

            
	
              Name:

            
	
              Title

            

    

    :

    
      
        
          

        

         

      

      
         

        
          

        

      

      
         

        
          

           

        

      

    

    

    
      	
              J.P.
                MORGAN SECURITIES INC. 

            
	
              BANC
                OF AMERICA SECURITIES LLC

            
	
              Acting
                severally on behalf of themselves and the several Initial
                Purchasers

            
	 
	 
	
              BANC
                OF AMERICA SECURITIES LLC

            
	 
	 
	 
	
              By________________________________

            
	
              Name:

            
	
              Title:

            
	 
	 
	
              J.P.
                MORGAN SECURITIES INC.

            
	 
	 
	 
	
              By________________________________

            
	
              Name:

            
	
              Title:Exhibit 10.1

    

    

    Exhibit
      10.1

    

    

    

    

    

    As
      of
      April 9, 2007

    

    

    

    Franklin
      Electric Co., Inc.

    400
      East
      Spring Street

    Bluffton,
      Indiana 46714

    Attention:
      Secretary

    

    
      	 	
              Re:

            	
              Amendment
                and PruShelf Renewal and Extension 

            

    

    

    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 (the “Note Agreement”), 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”) and each other
      Prudential Affiliate which becomes a party thereto 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 The
      cover
      page to the Note Agreement, paragraph 1A and paragraph 1B of the Note Agreement
      are each hereby amended to delete in its entirety each occurrence of the amount
      “$110,000,000” appearing therein and to substitute therefor the amount
“$175,000,000”.

     

    1.2 The
      first
      sentence of paragraph 2A(2) of the Note Agreement is amended to delete in its
      entirety clause (i) thereof and to substitute therefor the following: "(i)
      April
      9, 2010 (or if such date is not a Business Day, the Business Day next preceding
      such date) and".

    
      
         

      

      
        -
          16
          -

        
          

        

      

      
         

        Franklin
          Electric Co., Inc.

        As
          of
          April 9, 2007

        Page
          

        

        

      

    

    

    1.3 The
      Company and Prudential expressly agree and acknowledge that as of the date
      hereof, after giving effect to the issuance of the “Series B Notes” in the
      aggregate principal amount of $150,000,000 (as such Notes are described in
      the
      Confirmation of Acceptance dated as of even date herewith), the Available
      Facility Amount is $25,000,000. NOTWITHSTANDING
      THE FOREGOING, THIS AMENDMENT AND THE NOTE AGREEMENT HAVE BEEN ENTERED INTO
      ON
      THE EXPRESS UNDERSTANDING THAT NEITHER PRUDENTIAL NOR ANY PRUDENTIAL AFFILIATE
      SHALL BE OBLIGATED TO MAKE OR ACCEPT OFFERS TO PURCHASE SHELF NOTES, OR TO
      QUOTE
      RATES, SPREADS OR OTHER TERMS WITH RESPECT TO SPECIFIC PURCHASES OF PRIVATE
      SHELF NOTES, AND THE FACILITY SHALL IN NO WAY BE CONSTRUED AS A COMMITMENT
      BY
      PRUDENTIAL OR ANY PRUDENTIAL AFFILIATE.

    

    1.4 Paragraph
      5G of the Note Agreement is amended and restated in its entirety as
      follows:

    

    “5G. Leverage
      Fee.
      In
      addition to interest accruing on the Notes, the Company agrees to pay to the
      holders of the Notes a fee (the “Leverage
      Fee”)
      with
      respect to each Fiscal Quarter, beginning with the Fiscal Quarter ending June
      30, 2007, during which at any time the ratio of Consolidated Total Debt as
      of
      the end of such Fiscal Quarter to EBITDA for the period of four fiscal quarters
      then ended is equal to or greater than 2.00 to 1.00. The Leverage Fee payable
      with respect to each Note shall be a dollar amount equal to (a) the product
      obtained by multiplying (i) the Applicable Number (as defined below) for such
      Fiscal Quarter times (ii) the Weighted Dollar Average (as defined below) of
      the
      principal balance of such Note during the Fiscal Quarter to which the Leverage
      Fee relates and (b) dividing the product thus obtained by four. The Leverage
      Fee
      for each applicable Fiscal Quarter shall be payable in arrears on the date
      upon
      which the financial statements for such Fiscal Quarter are to be delivered
      under
      paragraph 5A(i) (or paragraph 5A(ii), if the applicable Fiscal Quarter is the
      last Fiscal Quarter in a fiscal year). If the Company fails to deliver financial
      statements under paragraphs 5A(i) or 5A(ii) for any Fiscal Quarter or fiscal
      year by the date such delivery is due, then the Company shall be deemed to
      owe
      the Leverage Fee for such Fiscal Quarter (based on an Applicable Number of
      .0015) and shall make the payment required for such Fiscal Quarter on the date
      due pursuant to the preceding sentence. Payment of the Leverage Fee shall be
      made pursuant to the terms of paragraph 11A. 

    

    The
      acceptance of the Leverage Fee by any holder of a Note shall not constitute
      a
      waiver of any Default or Event of Default. The consequences for the failure
      to
      pay the Leverage Fee when due shall be governed by paragraph 7A(ii) hereof,
      treating the Leverage Fee, for such purposes and for the purpose of determining
      the amount payable upon acceleration of the Notes, as interest.

    
      
         

      

      
        -
          17
          -

        
          

        

      

      
         

        Franklin
          Electric Co., Inc.

        As
          of
          April 9, 2007

        Page
          

        

        

      

    

    

    

    As
      used
      in this paragraph 5G, (a) “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 or (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 and (b) “Weighted
      Dollar Average”
      shall
      mean, with respect to any Note, during any Fiscal Quarter, a dollar amount
      determined by adding together the daily outstanding principal balance of such
      Note during such Fiscal Quarter and dividing the amount thus obtained by the
      total number of days in such Fiscal Quarter.”

    

    1.5 Paragraph
      6 of the Note Agreement is amended by inserting the following new paragraph
      6B(13) immediately after paragraph 6B(12):

    

    “6B(13).
      Terrorism Sanction Regulations. The
      Company will not, and will not permit any Subsidiary, to (i) become a Person
      described or designated in the Specially Designated Nationals and Blocked
      Persons List of the Office of Foreign Assets Control or in Section 1 of the
      Anti-Terrorism Order or (ii) engage in any dealings or transactions with any
      such Person.”

    

    1.6 Paragraph
      8 of the Note Agreement is amended by inserting the following new paragraph
      8P
      immediately after paragraph 8O: 

    

    “8P. Foreign
      Assets Control Regulations, Etc.
      (i)
      (a) Neither
      the sale of the Notes by the Company hereunder nor its use of the proceeds
      thereof will violate the Trading with the Enemy Act, as amended, or any of
      the
      foreign assets control regulations of the United States Treasury Department
      (31
      CFR, Subtitle B, Chapter V, as amended) or any enabling legislation or executive
      order relating thereto. 

    

    (ii) Neither
      the Company nor any Subsidiary (a) is a Person described or designated in the
      Specially Designated Nationals and Blocked Persons List of the Office of Foreign
      Assets Control or in Section 1 of the Anti-Terrorism Order or (b) engages in
      any
      dealings or transactions with any such Person. The Company and its Subsidiaries
      are in compliance, in all material respects, with the USA Patriot Act.

    
      
         

      

      
        -
          18
          -

        
          

        

      

      
         

        Franklin
          Electric Co., Inc.

        As
          of
          April 9, 2007

        Page
          

        

        

      

    

    (iii) No
      part
      of the proceeds from the sale of the Notes hereunder will be used, directly
      or
      indirectly, for any payments to any governmental official or employee, political
      party, official of a political party, candidate for political office, or anyone
      else acting in an official capacity, in order to obtain, retain or direct
      business or obtain any improper advantage, in violation of the United States
      Foreign Corrupt Practices Act of 1977, as amended, assuming in all cases that
      such Act applies to the Company.”

    

    1.7 Paragraph
      10B of the Note Agreement is amended by adding the following definition in
      appropriate alphabetical order:

    

    “USA
      Patriot Act”
shall
      mean United States Public Law 107-56, Uniting and Strengthening America by
      Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA
      PATRIOT ACT) Act of 2001, as amended from time to time, and the rules and
      regulations promulgated thereunder from time to time in effect.

    

    1.8 Exhibit
      D
      and
Schedules
      8A
      and
8G
      to the
      Note Agreement are hereby respectively amended and restated in their entirety
      in
      the form of Exhibit
      D
      and
Schedules
      8A
      and
8G
      attached
      hereto.

    

    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.
      Condition
      Precedent; Binding Agreement.
      This
      letter shall become effective as of the date hereof (the “Effective Date”) upon
      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 and PICA. When this letter is so executed and delivered by
      the
      Company and has been signed by PIM and PICA, it shall become a binding agreement
      among the Company, PIM and PICA.

    

    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. 

    
      
         

      

      
        -
          19
          -

        
          

        

      

      
         

        Franklin
          Electric Co., Inc.

        As
          of
          April 9, 2007

        Page
          

        

        

      

    

    

    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).

    

    (The
      remainder of this page is intentionally left blank.)

    
      
         

      

      
        -
          20
          -

        
          

        

      

      
         

        Franklin
          Electric Co., Inc.

        As
          of
          April 9, 2007

        Page
          

        

        

      

    

    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

    

    

    

    Agreed
      and accepted:

    

    FRANKLIN
      ELECTRIC CO., INC.

    

    

    By:     ______

      Thomas
      J.
      Strupp, 

    Vice
      President, Chief Financial Officer 

    and
      Secretary

    

             EXHIBIT
      D

    

    

    

    

    [FORM
      OF
      OPINION OF COMPANY'S SPECIAL COUNSEL]

    

    

    

    [Date
      of
      Closing]

    

    

    [List
      of
      Purchasers]

    c/o
      Prudential Capital Group

    Two
      Prudential Plaza

    Suite
      5600

    Chicago,
      Illinois 60601

    

    Ladies
      and Gentlemen:

     

    We
      have
      acted as special counsel to Franklin Electric Co., Inc., an Indiana corporation
      (the “Company”), in connection with the Second Amended and Restated Note
      Purchase and Private Shelf Agreement (the “Agreement”) dated as of September 9,
      2004, among the Company, Prudential Investment Management, Inc., The Prudential
      Insurance Company of America and each other Prudential Affiliate which becomes
      a
      party thereto, as amended by the Amendment and PruShelf Renewal and Extension
      dated as of April 9, 2007 (the “Letter Agreement”), providing for the issuance
      and delivery to you today of the Company’s ______________ Note(s) due _______,
      ____ (the “Notes”). This opinion letter is being delivered at the request of the
      Company pursuant to paragraph 3A of the Agreement. Capitalized terms used in
      this opinion letter that are defined in the Agreement and not otherwise defined
      in this opinion letter shall have the meanings given to them in the Agreement.
      The term “person” when used herein shall mean any individual or
      entity.

     

    In
      connection with this opinion letter, we have examined the following documents
      (the documents described in (i) and (ii) below are collectively called the
      “Transaction Documents”):

     

    (i) an
      executed copy of each of the Agreement and the Letter Agreement;

     

    (ii) executed
      copies of the Notes;

     

    (iii) a
      copy of
      the articles of incorporation of the Company and all amendments thereto,
      certified by the Secretary of State of Indiana;

     

    (iv) a
      copy of
      the by-laws of the Company and all amendments thereto, certified by the
      Secretary of the Company;

     

    (v) a
      copy of
      the resolutions of the board of directors of the Company authorizing the
      execution and delivery by the Company of the Transaction Documents and
      performance by the Company of the transactions contemplated thereby, certified
      by the Secretary of the Company;

     

    
      
        D-

         

      

      
        -
          21
          -

        
          

        

      

      
         

      

    

    

     

    (vi) a
      certificate of the Secretary of the Company as to the incumbency and specimen
      signatures of the officers of the Company executing the Transaction Documents;
      

     

    (vii) a
      Certificate of Existence of the Secretary of State of Indiana as to the
      corporate existence of the Company; and

     

    (viii)
       a
      certificate of the Company in the form attached hereto as Schedule I and an
      officer’s certificate as to certain matters of fact underlying our opinions in
      paragraphs 5 through 9 of this letter (together, the
“Certificates”).

     

    In
      making
      our examination, we have assumed the genuineness of all signatures, the
      authenticity of all documents submitted to us as originals, the conformity
      with
      the originals of all documents submitted to us as copies and the legal capacity
      of all natural persons. As to matters of fact material to our opinions in this
      letter, we have relied on certificates and statements from officers and other
      employees of the Company, public officials and other appropriate persons and
      on
      the representations made in the Transaction Documents. 

     

    In
      rendering the opinions in this letter we have assumed, except to the extent
      expressly set forth in and covered by our opinions below, that: (i) each party
      to each of the Transaction Documents, other than the Company, (a) is validly
      existing and in good standing under the laws of its jurisdiction of
      organization, (b) has full power and authority to execute the Transaction
      Documents to which it is a party, and to enter into the transactions
      contemplated therein, (c) has taken all necessary action to authorize execution
      of the Transaction Documents to which it is a party on its behalf by the persons
      executing same, (d) has properly executed and delivered each of the Transaction
      Documents to which it is a party, and (e) has duly obtained all consents or
      approvals of any nature from and made all filings with any governmental
      authorities necessary for such party to execute, deliver or perform its
      obligations under the Transaction Documents to which it is a party, (ii) all
      acts have been taken without violation of any fiduciary duties and in accordance
      with any notice or disclosure requirements, (iii) the execution and delivery
      of,
      and performance of their respective agreements under, the Transaction Documents
      by each party thereto do not violate any law, rule, regulation, judgment,
      injunction, order, decree, agreement or instrument binding upon such party,
      and
      (iv) each of the Transaction Documents is the legal, valid and binding
      obligation of, and enforceable against, each party thereto other than the
      Company.

     

    In
      rendering our opinions herein we have also assumed that there is no oral or
      written agreement, understanding, course of dealing or usage of trade that
      amends any term of any Transaction Document, or any waiver of any such term;
      that the Transaction Documents are accurate and complete; and that there has
      been no mutual mistake of fact or actual or constructive fraud,
      misrepresentation, duress, undue influence or similar inequitable
      conduct.

     

    We
      make
      no representation that we have independently investigated or verified any of
      the
      matters that we have assumed for the purposes of this opinion letter, and,
      by
      accepting this opinion letter, you acknowledge not to have requested, or relied
      on, any such independent investigation or verification by us.

     

    
      
        D-

         

      

      
        -
          22
          -

        
          

        

      

      
         

      

    

    

     

    For
      the
      purpose of this opinion letter, our “knowledge” (or any similar concept) with
      respect to any matter means (1) the actual knowledge regarding such matter
      of
      the particular attorneys who are presently employees or partners of Schiff
      Hardin LLP and who have represented the Company in connection with the
      transactions contemplated by the Transaction Documents, (2) we make no
      representation that we have undertaken any review of our files or other
      independent investigation with respect to any such matter (and, by accepting
      this opinion letter, you acknowledge not to have requested, or relied on, any
      such review or other independent investigation by us) and (3) no inference
      that
      we have actual knowledge concerning such matter should be drawn from the mere
      fact of our representation of the Company or our expression of any opinion
      in
      this opinion letter. Accordingly, relevant matters may exist, including relevant
      matters with respect to which attorneys in our firm are representing the
      Company, but of which for the purposes of this opinion letter, we do not have
      “knowledge.”

     

    For
      the
      purposes hereof, “Applicable Laws” shall mean the laws, rules and regulations to
      which our opinions are limited as described in qualifications E and F
      below.

     

    The
      opinions contained in this opinion letter are only expressions of professional
      judgment regarding the legal matters addressed and are not guarantees that
      a
      court would reach any particular result.

     

    Based
      on
      the foregoing and subject to the qualifications set forth below, we are of
      the
      opinion that:

     

    1. The
      Company is a corporation validly existing under the laws of the State of
      Indiana.

     

    2. The
      Company has the corporate power and authority to execute, deliver and perform
      its obligations under each of the Transaction Documents, and the execution,
      delivery and performance thereof by the Company have been duly authorized by
      all
      necessary corporate action on the part of the Company.

     

    3. Each
      of
      the Transaction Documents has been duly executed and delivered by the Company
      and constitutes the legal, valid and binding obligation of the Company,
      enforceable against the Company in accordance with its terms.

     

    4. The
      execution and delivery by the Company of each of the Transaction Documents
      do
      not, and the performance by the Company of its obligations under the Transaction
      Documents will not, (i) violate the articles of incorporation or the by-laws
      of
      the Company, (ii) violate any Applicable Law applicable to the Company, (iii)
      violate any judgment, injunction, order or decree to which the Company is
      subject that is listed on Schedule I
      attached
      to this opinion letter, or (iv) breach or result in a default under any
      indenture, mortgage, instrument or agreement that is listed on Schedule
      I
      attached
      to this opinion letter.

     

    
      
        D-

         

      

      
        -
          23
          -

        
          

        

      

      
         

      

    

    

     

    5. In
      view
      of the circumstances surrounding the sale and delivery of the Notes and on
      the
      basis of the representations made by the Company in paragraph 8H of the
      Agreement and in the Certificates, and by you in paragraph 9 of the Agreement,
      it is not necessary in connection with the offering, issuance and delivery
      of
      the Notes under the circumstances contemplated by the Agreement to register
      the
      Notes under the Securities Act or to qualify an indenture in respect of the
      Notes under the Trust Indenture Act of 1939, as amended and now in
      effect.

     

    6. On
      the
      basis of the representations made by the Company in paragraph 8I of the
      Agreement and in the Certificates, the extension, arranging and obtaining of
      the
      credit represented by the Notes do not result in any violation of Regulation
      T,
      U or X of the Board of Governors of the Federal Reserve System.

     

    7. None
      of
      the execution and delivery by the Company of any of the Transaction Documents,
      the performance by the Company of its obligations under the Transaction
      Documents, and the offering, sale and issuance of the Notes by the Company
      under
      the circumstances contemplated by the Transaction Documents requires any consent
      or approval from or filing with any governmental authority of the State of
      Illinois or the United States of America under any Applicable Law, except for
      any routine filings after the date hereof with the Securities and Exchange
      Commission and state blue sky authorities.

     

    8. The
      Company is not an “investment company” as defined in, or subject to regulation
      under, the Investment Company Act of 1940.

     

    9. The
      Company is not a “holding company” as defined in, or subject to regulation
      under, the Public Utility Holding Company Act of 2005, as amended.

     

    The
      opinions set forth above are subject to the following
      qualifications:

     

    A. For
      purposes of our opinion in paragraph 1 above as to the existence of the Company,
      we have relied solely upon the document described in item (vii)
      above.

     

    B. The
      opinions set forth above are subject to (i) applicable laws relating to
      bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer or
      other
      similar laws affecting creditors’ rights generally, whether now or hereafter in
      effect, (ii) general principles of equity, including, without limitation,
      concepts of materiality, laches, reasonableness, good faith, fair dealing and
      judicial discretion, and the principles regarding when injunctive or other
      equitable remedies will be available (regardless of whether considered in a
      proceeding at law or in equity), (iii) the qualification that certain provisions
      of the Transaction Documents are or may be unenforceable in whole or in part,
      but, subject to the other limitations as to enforceability expressed in this
      opinion and any limitations contained in the Transaction Documents, the
      inclusion of such provisions does not prevent the practical realization of
      the
      benefits intended to be afforded by the Company’s principal obligations under
      the Transaction Documents except for the economic consequences, if any,
      resulting from any delay imposed by applicable laws, rules and regulations,
      court decisions or procedures or constitutional requirements, (iv) the
      qualification that no opinion is rendered as to waivers, consents or
      authorizations to take action or any other provisions of the 

     

    
      
        D-

         

      

      
        -
          24
          -

        
          

        

      

      
         

      

    

    Transaction
      Documents that are intended to prevent a guarantor from being discharged from
      its obligations under a guaranty, and (v) the qualification that no opinion
      is
      rendered as to any provision of any Transaction Document that purports to
      reinstate any Transaction Document, any lien or security interest granted under
      any Transaction Document or any obligation of the Company under any Transaction
      Document.

     

    C. In
      rendering the opinions set forth above, we have made no examination of, and
      we
      express no opinion with respect to, any accounting or tax matters. In
      particular, no advice is being rendered with respect to any questions concerning
      the federal tax treatment of an item of income, gain, loss, deduction or credit,
      the existence or absence of a taxable transfer of property, or the value of
      property for federal tax purposes. Our opinion in paragraph 4 above covers
      only
      violations, breaches or defaults that can be definitively determined as of
      the
      date of this opinion letter and does not cover violations, breaches or defaults
      the occurrence of which is dependent upon future events or circumstances or
      compliance with financial covenants or ratios that involve or require
      computations or calculations. Our opinion in paragraph 7 above is not intended
      to cover consents, approvals or filings that might be required as a result
      of
      the conduct by the Company of its business or operations.

     

    D. We
      express no opinion as to the validity, legality, binding effect or
      enforceability of any covenant or agreement (i) providing for release of
      liability for or the indemnification against or contribution with respect to
      any
      losses, claims, damages, expenses or liabilities incurred by any person (a)
      as a
      result of any violation of any securities law by such person, (b) as a result
      of
      the gross negligence or willful misconduct of such person, (c) as a result
      of
      the negligence of such person if a court would find that the intent to indemnify
      such person for such person’s negligence was not clearly expressed, (d) as a
      result of fraud or misrepresentation by such person, or (e) if a court would
      find that such indemnification, contribution or release otherwise violates
      public policy, (ii) requiring that any amendment, modification or waiver of
      any
      Transaction Document shall not be effective unless in writing, (iii) providing
      for the consent to jurisdiction of any court, the waiver of objection of venue
      of any court, the waiver of or consent to service of process in any manner
      other
      than provided in the laws of the State of Illinois, the waiver of jury trial
      or
      the waiver of counterclaim or cross-claim, (iv) providing that delays will
      not
      operate as waivers, (v) attempting to modify or waive any requirements of
      reasonableness or notice arising under the laws of any jurisdiction to the
      extent applicable to the transactions contemplated by the Transaction Documents,
      (vi) requiring the payment of interest on overdue but unpaid interest or fixed
      late payment charges, (vii) purporting to be an agreement to use “best efforts,”
(viii) relating to severability as applied to any portion of a Transaction
      Document deemed by a court to be material, (ix) waiving the benefits of any
      statutory provision or common law right where such waiver violates limitations
      imposed by statute or is against public policy, (x) providing for a choice
      of
      any governing law other than the laws of the State of Illinois, (xi) purporting
      to restrict access to legal or equitable remedies or purporting to establish
      evidentiary standards for suits or proceedings to enforce the Transaction
      Documents or evidentiary standards relating to powers granted to any party,
      (xii) appointing any person as attorney-in-fact, (xiii) granting self-help
      remedies, (xiv) disclaiming any effect of usage of trade, course of performance
      or course of dealing, (xv) setting forth remedies to the extent such remedies
      would have the effect of compensating the party entitled to the benefits thereof
      in amounts in excess of actual loss suffered by such party, other than
      liquidated damages (which are covered under (xvi)), (xvi) providing for a
      penalty or purporting to be an agreement to 

     

    
      
        D-

         

      

      
        -
          25
          -

        
          

        

      

      
         

      

    

    pay
      liquidated damages unless actual damages would be impossible or difficult to
      determine and the liquidated damages provided for are reasonable in light of
      the
      anticipated or actual loss, or (xvii) regarding non-disclosure, confidentiality
      or non-competition.

     

    E. Our
      opinions are limited to only those laws, rules and regulations that we have,
      in
      the exercise of customary professional diligence, but without any special
      investigation, recognized as generally applicable to the transactions
      contemplated by the Transaction Documents and to business organizations of
      the
      same type as the Company (which are not engaged in regulated business
      activities) and exclude the USA Patriot Act, the Trading with the Enemy Act,
      Executive Order 13224 and similar laws and regulations, as well as all laws,
      rules and regulations of the type described in Section 19 of the Legal Opinion
      Accord of the American Bar Association Section of Business Law (1991), except
      to
      the extent covered by our opinions in paragraphs 5 and 6 above. In addition,
      we
      express no opinion as to any law, rule or regulation (i) the violation of which
      would not have a material adverse effect on you or the Company or the Company’s
      ability to perform its obligations under the Transaction Documents, (ii) the
      violation of which can be cured without significant expense to you, or (iii)
      to
      which the Company may be subject as a result of your legal or regulatory
      status.

     

    F. The
      foregoing opinions are limited to the laws of the State of Illinois, the Indiana
      Business Corporation Law, and the federal laws of the United States of America,
      and we express no opinions with respect to the laws of any other jurisdiction.
      

     

    The
      opinions expressed in this opinion letter are as of the date of this opinion
      letter only and as to laws covered hereby only as they are in effect on that
      date, and we assume no obligation to update or supplement such opinion to
      reflect any facts or circumstances that may come to our attention after that
      date or any changes in law that may occur or become effective after that date.
      The opinions herein are limited to the matters expressly set forth in paragraphs
      1 through 9 of this opinion letter, and no opinion or representation is given
      or
      may be inferred beyond the opinions expressly set forth in paragraphs 1 through
      9 in this opinion letter.

     

    This
      opinion letter is furnished by us as special counsel for the Company, is solely
      for your benefit and for the benefit of your successors and assigns, including
      any bona fide transferee of the Notes, in connection with the transactions
      stated herein, and is not to be relied on by any other person or for any other
      purpose without our prior written consent. No interest you may have under or
      with respect to this opinion letter (separate from your interest in the Notes)
      may be assigned without our prior written consent.

     

    Very
      truly yours,

    

    SCHIFF
      HARDIN LLP

    

    

    

    By:
            

    

    

    
      
        
          D- 

        

         

      

      
        -
          26
          -

        
          

        

      

      
         

        
          

          

        

      

    

    SCHEDULE
      8A

    

    LIST
      OF SUBSIDIARIES

    

     

    
      	
              Name

            	
              State
                or country of Incorporation

            	
              %
                Owned

            
	
              Franklin
                Fueling Systems, Inc.

            	
              Wisconsin

            	
              100

            
	 	 	 
	
              Franklin
                Electric International, Inc. Japan

            	
              Japan

            	
              100

            
	 	 	 
	
              Franklin
                Electric Europa GmbH

            	
              Germany

            	
              100

            
	 	 	 
	
              Franklin
                Electric South Africa (Pty) Ltd.

            	
              South
                Africa

            	
              100

            
	 	 	 
	
              Franklin
                Electric (Australia) Pty. Ltd.

            	
              Australia

            	
              100

            
	 	 	 
	
              Motores
                Franklin S.A. de C.V.

            	
              Mexico

            	
              100

            
	 	 	 
	
              Motores
                Electricos Sumergibles de Mexico, S. de R.L. de C.V. 

            	
              Mexico

            	
              100

            
	 	 	 
	
              Servicios
                de MESMEX, S. de R.L., de C.V.

            	
              Mexico

            	
              100

            
	 	 	 
	
              Motori
                Sommersi Riawolgibili S.r.l.

            	
              Italy

            	
              75

            
	 	 	 
	
              Franklin
                Electric spol s.r.o.

            	
              Czech
                Republic

            	
              100

            
	 	 	 
	
              Franklin
                Electric (Suzhou) Co., Ltd.

            	
              China

            	
              100

            
	 	 	 
	
              EBW,
                Inc.

            	
              Michigan

            	
              100

            
	 	 	 
	
              Advanced
                Polymer Technology, Inc.

            	
              Michigan

            	
              100

            
	 	 	 

    

    
      
         

      

      
        -
          27
          -

        
          

        

      

      
         

      

    

    

    
      	 	 	 
	
              Intelligent
                Controls, Inc.

            	
              Maine

            	
              100

            
	 	 	 
	
              Coverco
                S.R.L.

            	
              Italy

            	
              100

            
	 	 	 
	
              Franklin
                Electric International, Inc.

            	
              Delaware

            	
              100

            
	 	 	 
	
              Franklin
                Electric B.V.

            	
              Netherlands

            	
              100

            
	 	 	 
	
              Franklin
                Electric Taiwan

            	
              Taiwan

            	
              100

            
	 	 	 
	
              Franklin
                Electric Manufacturing Inc.

            	
              Indiana

            	
              100

            
	 	 	 
	
              Franklin
                Electric Sales, Inc.

            	
              Indiana

            	
              100

            
	 	 	 
	
              Franklin
                Fueling Systems GmbH

            	
              Germany

            	
              100

            
	 	 	 
	
              Franklin
                Pump Systems, Inc.

            	
              Arkansas

            	
              100

            
	 	 	 
	
              Little
                Giant Pump Company, Inc.

            	
              Oklahoma

            	
              100

            
	 	 	 
	
              Healy
                Systems, Inc

            	
              New
                Hampshire

            	
              100

            
	 	 	 
	
              Franklin
                Electric Subsidiaries, Inc. (inactive)

            	
              Indiana

            	
              100

            
	 	 	 
	
              Franklin
                Electric Canada

            	
              Canada

            	
              100

            
	 	 	 
	
              Franklin
                Electric Trading (Shanghai) Co., Ltd.

            	
              China

            	
              100

            

    

    

    

    
      
        
           

        

         

      

      
        -
          28
          -

        
          

        

      

      
         

        
          

          

        

      

    

    

    SCHEDULE
      8G 

    

    

    

    

    

    LIST
      OF AGREEMENTS RESTRICTING DEBT

    

    

    

    

    Amended
      and Restated Credit Agreement, dated as of December 14, 2006, among the Company,
      the Lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative
      Agent.

     

    

    

    

    
      
         

      

      
        -
          29
          -

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