Document:

Exhibit 10(e) to The Valspar Corporation Form 10-K dated October 28, 2005

Exhibit 10(e)  

THE VALSPAR CORPORATION STOCK OPTION PLAN

FOR NON-EMPLOYEE DIRECTORS, AS AMENDED 12/7/05  

Section 1.    Purpose. 

        This
plan is known as “The Valspar Corporation Stock Option Plan for Non-Employee
Directors” and is hereinafter referred to as the “Plan.” The purpose of the
Plan is to promote the interests of The Valspar Corporation, a Delaware corporation (the
“Company”), by enhancing its ability to attract and retain the services of
experienced and knowledgeable independent directors and by providing additional incentive
for these directors to increase their interest in the Company’s long-term success and
progress. 

Section 2.    Participation in the Plan. 

        Each
director of the Company who is not an employee of the Company or any subsidiary of the
Company (a “Non-Employee Director”) will be eligible to participate in the Plan. 

Section 3.    Stock Subject to the Plan. 

        Shares
to be issued under the Plan shall be common stock of the Company (par value $.50 per
share) (“common stock”), not to exceed a maximum of 1,000,000 shares, and may be
unissued shares or reacquired shares. If options granted under the Plan expire or
terminate without having been exercised in full, such unpurchased shares shall be
available for other option grants. If shares of common stock are delivered as full or
partial payment upon exercise of an option, the number of shares so delivered shall again
be available for other option grants. 

Section 4.    Non-Qualified Stock Option Grants. 

     a.)    
          For grants in respect of board service in fiscal year 2000 and prior fiscal
          years, each Non-Employee Director serving as a member of the Board of Directors
          of the Company on the December 31 immediately preceding each annual meeting of
          the stockholders of the Company, will automatically be granted on the date of
          such annual meeting a Non-Qualified Stock Option with a value equal to 50% of
          the amount of the current annual retainer and meeting fees paid to Non-Employee
          Directors for their service on the Board of Directors and board committees for
          the preceding fiscal year. The per share option exercise price will be equal to
          100% of the Fair Market Value of one share of the Company’s common stock on
          the date of grant, as determined by the closing price of the Company’s
          common stock on the last business day prior to the annual meeting date. 

     b.)    
          For grants in respect of service in fiscal year 2001, each Non-Employee Director
          serving as a member of the Board of Directors of the Company on October 26, 2001
          will automatically be granted, on the date of the Company’s annual meeting
          in 2002, a non-qualified stock option with a value equal to 100% of the annual
          retainer and meeting fees paid to Non-Employee Directors for their service on
          the Board of Directors and board committees during fiscal year 2001. The per
          share option price will be equal to 100% of the fair market value of one share
          of the Company’s common stock on the date of grant as determined by the
          closing price of the Company’s common stock on the last business day prior
          to such annual meeting. 

     c.)    
          For grants in respect of service in fiscal years 2002 and 2003, each
          Non-Employee Director serving as a member of the Board of Directors of the
          Company on the date of the October board meeting in any year will automatically
          be granted on the date of such meeting a non-qualified stock option with a value
          equal to 100% of the amount of the current annual retainer and meeting fees paid
          to Non-Employee Directors for service on the Board of Directors and board
          committees during the current fiscal year. The per share option exercise price
          will be equal to 100% of the fair market value of one share of the
          Company’s common stock on the date of grant, as determined by the closing
          price of the Company’s  

common stock on the last business
day prior to such           October board meeting date. In the event no Board meeting is
held in October of           any year, the grant date shall be the last day of the
current fiscal year and           the per share option exercise price shall be equal to
100% of the fair market           value of one share of the Company’s common stock
on the last business day           preceding such grant date.  

     d.)    
          For grants in respect of service in fiscal year 2004 and subsequent fiscal
          years, each Non-Employee Director serving as a member of the Board of Directors
          of the Company on the date of the October board meeting in any year will
          automatically be granted on the date of such meeting a non-qualified stock
          option with a value equal to $50,000.00. The per share option exercise price
          will be equal to 100% of the fair market value of one share of the
          Company’s common stock on the date of grant, as determined by the closing
          price of the Company’s common stock on the last business day prior to such
          October board meeting date. In the event no Board meeting is held in October of
          any year, the grant date shall be the last day of the current fiscal year and
          the per share option exercise price shall be equal to 100% of the fair market
          value of one share of the Company’s common stock on the last business day
          preceding such grant date. 

     e.)    
          For grants in respect of service in fiscal year 2006 and subsequent fiscal
          years, each Non-Employee Director serving as a member of the Board of Directors
          of the Company on the date of the October board meeting in any year will
          automatically be granted on the date of such meeting a non-qualified stock
          option with a value equal to $65,000.00. The per share option exercise price
          will be equal to 100% of the fair market value of one share of the
          Company’s common stock on the date of grant, as determined by the closing
          price of the Company’s common stock on the last business day prior to such
          October board meeting date. In the event no Board meeting is held in October of
          any year, the grant date shall be the last day of the current fiscal year and
          the per share option exercise price shall be equal to 100% of the fair market
          value of one share of the Company’s common stock on the last business day
          preceding such grant date. 

        The
number of shares subject to the option will be determined by using the same option
valuation model used to value options for purposes of the notes to the Company’s
audited financial statements for the prior fiscal year. If no option valuation model is
used for financial reporting purposes, the Board of Directors will determine the
appropriate model to be used for this purpose. All such options will be designated as
Non-Qualified Stock Options. Each option will be immediately exercisable in full and have
a term of ten years. Upon termination of a person’s service as a director of the
Company, such Non-Employee Director will be allowed to exercise the option for a period of
three years after the date on which such person ceased to be a director, but in no event
may the option be exercised after the expiration of its original term. 

Section 5.    Option Agreement and Exercise of Option. 

        Promptly
after determination of the number of stock options to be granted to each Non-Employee
Director under Section 4, the Company will prepare and deliver a Non-Qualified Stock
Option Agreement to each Non-Employee Director, containing the terms described in this
Plan. Optionee is not required to exercise options in the sequential order that the
options were granted. An option shall be exercised by written notice in a form designated
by the Company accompanied by full payment of the purchase price. All or part of the
purchase price may be paid by surrender (or deemed surrender through attestation) of
previously acquired shares of common stock valued at the fair market value at the closing
price on the day preceding the date of exercise. Until an option is exercised and the
stock certificate issued, the Optionee shall have no rights as a stockholder with respect
to such option. 

Section 6.    Withholding of Taxes. 

        Upon
exercise of an option, the Optionee shall (i) pay cash, (ii) surrender previously acquired
shares of common stock or (iii) authorize the withholding of shares from the shares issued
upon exercise of an option for all taxes required to be withheld. 

Section 7.    Non-Transferability. 

        Except
as otherwise provided by the Committee, Options shall not be transferable, voluntarily or
involuntarily, except by will or applicable laws of descent and distribution. Only the
Optionee, Optionee’s legal representative or guardian or a permitted transferee may
exercise the option. 

Section 8.    Dilution or Other Adjustments. 

        The
number of shares subject to the Plan, the outstanding options and the exercise price may
be adjusted by the Committee as it deems equitable in the event of stock split, stock
dividend, recapitalization, reclassification or similar event to prevent dilution or
enhancement of option rights. 

Section 9.    Mergers, Acquisitions, or Other Reorganization. 

        The
Committee may make provision, as it deems equitable, for the protection of Optionees with
grants of outstanding options in the event of (a) merger of the Company into, or the
acquisition of substantially all of the stock or assets of the Company by, another entity;
or (b) liquidation; or (c) other reorganization of the Company. 

Section 10.    Administration and Amendment of the Plan. 

        The
Plan shall be administered by the Compensation Committee of the Board of Directors. The
Committee may suspend or discontinue the Plan or revise or amend it in any respect deemed
advisable and in the best interests of the Company; provided, however, that no such
revision or amendment would impair the terms and conditions of any option which is
outstanding on the date of such revision or amendment to the material detriment of the
Optionee without the consent of the Optionee. In addition, no such revision or amendment
may, without the approval of the Corporation’s stockholders, (i) materially increase
the number of shares subject to the Plan except as provided in the case of stock splits,
consolidations, stock dividends or similar events, (ii) change the designation of the
class of individuals eligible to receive options, or (iii) materially increase the
benefits accruing to Optionees under the Plan. 

Section 11.    Effective Date of the Plan. 

        The
Plan will become effective as of February 25, 1998, the date stockholders of the Company
approve such Plan. The first option grant under this Plan will be granted on the date of
the annual stockholder meeting held in 1999 to all Non-Employee Directors who were members
of the Board of Directors on December 31, 1998. This Plan is being adopted to replace The
Valspar Corporation Restricted Stock Plan for Non-Employee Directors, which will
automatically terminate following the issuance of the restricted stock grant that was
earned for services during 1997. The effectiveness of the amendments to Section 4(b)
relating to grants in fiscal 2001 was approved by stockholders on February 27, 2002.Exhibit 10(j) to The Valspar Corporation Form 10-K dated October 28, 2005

Exhibit 10(j)  

THE VALSPAR CORPORATION

KEY EMPLOYEE LONG TERM INCENTIVE BONUS PROGRAM

as Amended December 7, 2005 

	1.  	  	Purpose. The
purpose of the Key Employee Long Term Incentive Bonus                     Program (the
“Program”) is to provide an incentive to eligible
                    management employees to increase the shareholder value of The Valspar
                    Corporation (the “Company”) through a cash award based on
the earnings                     per share growth of the Company during a three fiscal
year cycle. This Program                     shall be in addition to any other award or
grant under any other bonus or stock                     incentive plan of the Company.  

	2. 	  	Recipients. The
Compensation Committee shall determine the Employees of                     the Company
who shall participate in this Program (the “Recipient”)                     and
who are eligible to receive an Award pursuant to Section 5 below, provided
                    the Recipient satisfies the conditions set forth herein. The
Compensation                     Committee, in its discretion, may make any Employee who
had been appointed or                     promoted after the commencement of a
Performance Period(s) eligible to receive                     an Award, provided that
such Employee’s Award shall be pro rated based on                     the period
during which the Employee participates for the remainder of such
                    Performance Period(s). Except as otherwise provided in Section 6, an
Employee                     shall cease to be an eligible Recipient under this Program
upon the earlier of                     (a) his or her termination of employment with
Valspar for any reason or (b) a                     determination by the Compensation
Committee that he or she shall no longer be                     eligible for this
Program.  

	3. 	  	Performance
Period. The Performance Period will be three consecutive                     fiscal
years of the Company. The first Performance Period will commence November
                    1, 2001. A new Performance Period shall commence on the first day of
each                     subsequent fiscal year and end on the last day of the third
fiscal year                     following such date.  

	4. 	  	Performance
Goal. The Performance Goal shall be the cumulative earnings                     per
share (“EPS”) of common stock of the Company for each Performance
                    Period as set by the Committee and recorded in its minutes. The
Performance Goal                     may be expressed as a range. The Performance Goal
must be established no later                     than the end of the ninth month after
the beginning of the Performance Period,                     but may be modified
thereafter if deemed necessary by the Compensation Committee                     to
accomplish the purposes of the Program. The Performance Goal for a subsequent
                    Performance Period need not be consistent with the Performance Goal
for any                     prior Performance Period. The EPS shall be determined based
upon the audited                     financial statements of the Company; provided that
the Committee, in its                     discretion, may adjust such EPS for
extraordinary items. The Committee will, as                     soon as administrative
feasible following the end of each Performance Period,                     certify in
writing as to the actual EPS achieved and the level of the Awards
                    based on the Performance Goal.  

	5. 	  	Awards. Each
Recipient who meets the conditions for payment as described                     below
will receive a cash bonus (the “Award”) equal to a percentage of
                    the Recipient’s annual base salary in effect on the first day of
the                     Performance Period, such percentage to be determined by the
Compensation                     Committee and recorded in its minutes. If the
Performance Goal is expressed as a                     range, the amount of each Recipient’s
Award will vary in direct proportion                     to the level of achievement
within the Performance Goal range; provided,                     however, that the
Committee may, at the time the Award is set, establish a                     minimum
Award and a maximum Award regardless of the level of achievement of the
                    Performance Goal. The Company shall notify each Recipient of the
amount or range                     of his or her individual Award as soon as
administratively feasible after the                     Committee establishes the Award.  

	6. 	  	Conditions
of Payment. Except as provided in the next sentence or in                     Section
9 below, no Recipient shall be entitled to any Award under this Program
                    unless the Recipient is an active employee of the Company on the last
day of the                     Performance Period. Notwithstanding the foregoing, a
Recipient shall be entitled                     to an Award for a Performance Period if
the Recipient’s employment with the                     Company terminated during
the Performance Period as a result of death,                     Disability or
Retirement, provided that the amount of the Award 

	 	  	(as   otherwise
                    determined as provided in Section 5 above at the end of each
Performance Period                     in effect at the time of death, Disability or
Retirement) pro-rated for that                     portion of the Performance Period(s)
during which the Recipient was employed.                     For purposes of this
Program: (a) Disability shall mean the date the Recipient                     qualifies
for long term disability benefits under any program maintained by the
                    Company; and (b) Retirement shall mean termination of employment at
any time                     after the Recipient has attained age 60 (or age 55 with an
executed non-compete                     agreement) Nothing herein shall require the
payment of any Award prior to the                     date set forth in Section 7.  

	7. 	  	Payment
of Awards; Withholding. The date of payment of an Award shall be
                    as soon as administratively feasible following the certification of
the                     achievement of the Performance Goal by the Compensation
Committee, but not later                     than 90 days after the end of the
Performance Period. The Company shall withhold                     from the payment of
any Award any and all applicable taxes required by law.  

	8. 	  	Rights
of Recipients. No Recipient shall be entitled to any rights under
                    this Program prior to the date of payment of any Award. Nothing in
this Program                     shall limit the right of the Company to terminate the
employment of any                     Recipient or confer upon any Recipient any right to
continue in the employ of                     the Company.  

	9. 	  	Discretion
of Committee. The Committee shall have the discretion to
                    administer this Program, to establish rules, and to interpret its
provisions,                     consistent with its purposes. The Committee may
accelerate the achievement of                     Performance Goals, pay a pro-rata
portion of any Award prior to the end of a                     Performance Period or make
other adjustments as it deems appropriate, which need                     not be uniform
for all Recipients.  

	10. 	  	Amendment
and Termination. The Committee and the Board reserve the right:
                    (a) to amend this Program at any time; (b) to cancel any Performance
Goal and                     any Award associated therewith at any time prior to the end
of the Performance                     Period; (c) to discontinue the establishment of
future Performance Periods and                     Awards; (d) to modify the class of
eligible Recipients for future Awards, and                     (e) to terminate the
Program, in each event without further obligation to any                     Recipient.  

	11. 	  	Effective
Date. This Program is established by the Compensation Committee
                    at its meeting held on February 26, 2002, and is effective as of
November 1,                     2001 and amended on December 7, 2005.  

	 	THE VALSPAR CORPORATION
	 
	 	By:
	 	

	 
	 	Its:

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