Document:

Exhibit 10.1

 

	
        Anthony L. Blaine

        Senior Vice President, Human Resources

         
	
        P.O. Box 1461

        Minneapolis, MN
        55440

        Phone: 612.851.7988

        Fax: 612.486.7972

 

February 11, 2013

 

 

Mr. James L. Muehlbauer

6405 Parkwood Road

Edina, MN   55436

 

Dear Jim:

 

I am very pleased to extend to you this
offer of employment with The Valspar Corporation. This letter summarizes the terms of Valspar’s offer:

 

	Position:	
        Executive Vice President, Chief Financial
        and Administrative Officer.

         

	Reporting:	
        This position reports to Gary E. Hendrickson,
        Chairman, President and Chief Executive Officer.

         

	Location:	
        Minneapolis, Minnesota.

         

	Date of Hire:	March 11, 2013.  
	 	 
	Officer Status:	
        Your election as an Officer of The Valspar Corporation will be proposed
        at the Board’s February meeting, effective on your date of hire.

         

	Key Employee Status:	
        The Compensation Committee has approved you as a participant in Valspar’s
        Key Employee Annual Plan (executive compensation program), beginning in fiscal year 2013. Incentives under the plan are prorated
        to reflect your date of hire, where indicated below.

         

	Base Salary:	
        $600,000 annualized ($23,076.92 gross bi-weekly).

         

	Annual Bonus:	
        You will be eligible for an annual cash
        bonus with a target opportunity of 75% of actual base salary earnings during a fiscal year (fiscal 2013 is prorated).

         

        Per the terms of the Key Employee Plan,
        the actual payout potential is between 0 and 200% of target based on performance against established financial objectives. You
        must be employed at the end of a fiscal year to be eligible for any payment for that year.

 

    	1

    	 

    

 

	
        Long-Term Incentives

        (LTI):
	The LTI Target Opportunity value for this position is $1,450,000.  Your fiscal 2013 target opportunities under this program will be prorated to reflect your date of hire (65% of the full-year values, or $942,500).
	 	 
	 	
        Under the current Plan design, the LTI Target Opportunity value is
        delivered as follows:

         

        Stock Options 50% of the LTI Target Opportunity value is delivered
        as a stock option grant, effective in October, prior to the fiscal year. The number of shares is determined by dividing the value
        by the Black-Scholes value of a stock option. Stock options are subject to three-year vesting (one-third vesting on the first,
        second and third anniversaries of the grant date) and have a ten-year exercise term.

         

        For fiscal year 2013 you will be granted a stock option valued
        at $471,250 (65% of $725,000 reflecting your date of hire), effective on your date of hire. The exercise price of the options will
        be equal to the market closing price of Valspar stock on the effective date with the number of option shares determined using an
        assumed value of 30% of the closing price on the effective date.

         

        Performance-Based Restricted Award Opportunity 25% of the
        LTI Target Opportunity value is a restricted award target value. The range of potential payouts is 0-200% of this target value,
        earned through achievement of financial goals for the fiscal year. In January following completion of the fiscal year the earned
        payout value is awarded in restricted stock, which is then subject to cliff vesting on the third anniversary of the award date.
        Dividends are paid throughout the vesting period.

         

        Your Target Opportunity value for fiscal year 2013 is $235,625
        (65% of $362,500 reflecting your date of hire).

         

        Time-Vesting Restricted Stock Units 25% of the LTI Target
        Opportunity value is a time-vesting restricted stock unit, effective in January, during the fiscal year. The award is subject to
        cliff vesting on the fourth anniversary of the award date, at which time the value is settled in cash. Cash dividend equivalents
        are accumulated during the vesting period and paid when the RSUs are settled.

         

        Your Time-Vesting Restricted Stock Unit value for fiscal year
        2013 is $235,625 (65% of $362,500 reflecting your date of hire). This amount will be converted to cash-settled restricted stock
        units, effective on your date of hire and based on the closing price of Valspar stock on the effective date.

         

 

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        Signing and Retention

        Incentive:

         
	To help compensate for differences between this offer and your prior compensation, promote your acceptance of this offer, ensure long-term retention and align your interests with those of Valspar stockholders, you will be provided a hiring award with the following terms:  
	 	-	Award value of two million dollars.
	 	-	You may elect to receive the award in Valspar nonqualified stock options, restricted stock, or a combination of both.
	 	-	The award is subject to four-year vesting, 25% on each anniversary date.
	
        Non-Compete Agreement:

         
	
        Your employment and participation in Valspar’s long-term incentive
        programs (LTI) are contingent upon signing a non-compete agreement that extends for a period of three years following separation
        from employment with Valspar. The non-compete document will be provided separately.

         

	Officer Perquisites:	
        Valspar officers are eligible for certain perquisites as determined
        from time-to-time by the Compensation Committee. These currently include physical examinations, a car allowance of $750 per month,
        financial counseling and tax preparation reimbursement.

         

	Change in Control Agreement:	Valspar officers are provided agreements that provide for continued employment for a period of two years following a change in control of Valspar, as defined in the agreement, or entitlement to certain pay and benefits.  The agreement document will be provided separately. 
	 	 
	Employee Benefits Programs:	
        Valspar executives participate in a variety benefit programs which
        are available to other salaried employees based in the United States. These include health, welfare and retirement savings programs.
        Additional information will be provided outside this letter.

         

	Vacation and  Holidays:	
        Valspar’s vacation year runs from January 1st through
        December 31st. You will be eligible for four weeks of paid vacation annually, prorated to reflect your date of hire
        in 2013.

         

        In addition to personal vacation, Valspar observes a calendar of
        paid company Holidays (typically eleven days throughout the year).

         

	Executive Compensation:	Executive compensation and perquisites fall under the purview of the Compensation Committee of the Board of Directors, which periodically reviews compensation and reserves the right to modify, alter, eliminate or prospectively replace elements of the programs.

 

 

 

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This employment offer is contingent upon satisfactory completion
of final referencing and your completing and signing the following: Valspar Employment Application, The Invention and Confidentiality
Agreement, Non-compete Agreement, Code of Ethics and Business Conduct Certification of Compliance, and the Employee Handbook Verification
Card.

 

The offer is also contingent upon your satisfactory completion
of a verification of relevant information provided on your employment application as well as a Valspar paid pre-employment drug
test. Please contact MedTox Laboratories at 1-800-832-3244 and ask for a collection site coordinator. Identify yourself as a Valspar
applicant with account number 525609 and they will identify a clinic location convenient to you. You can then schedule an appointment.
The drug test and background verification will need to be completed and results returned to Valspar prior to your start date.

 

Please notify me of your decision to accept this offer by telephone
and confirm in writing by signing and returning the enclosed copy of this letter and the enclosed materials to my attention. Feel
free to contact Renee Hogan at 612-851-7087 if you have any questions regarding employee benefits. Also, feel free to contact me
at 612-851-7988 at any time.

 

In accordance with the requirements of the United States Immigration
and Naturalization Service, please provide Valspar either on your first day of employment or within three (3) days of your start
date, with documentation verifying your eligibility for employment. You will receive your I-9 Employment Eligibility Verification
form prior to your start date. Please refer to the form for a complete list of identification options you can use to show Valspar
your eligibility status. Should you have a problem with any of this, please contact me as soon as possible.

 

I am very pleased to extend this offer of employment and will
be glad to assist in any way I can.

 

 

	Sincerely,	 	Accepted:	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
        Anthony L. Blaine

        Senior Vice President, Human Resources
	 	James L. Muehlbauer	 	Date

 

 

cc: Gary E. Hendrickson

 

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LAW DEPARTMENT MEMORANDUM

 

	To:	
        Prospective Valspar Employee

         

	From:	
        Rolf Engh

        Executive Vice President, General Counsel and Secretary

         

	Re:	Valspar’s Code of Ethics and Business Conduct

 

 

 

As you are a prospective employee with Valspar,
I take this opportunity to welcome you and address an important aspect of your anticipated employment with Valspar.

 

Each Valspar employee is responsible for upholding
our Code of Ethics and Business Conduct. You can review the Code on the internet under the About Us section of Valspar’s
home page at www.valspar.com. If you prefer to review a printed version, contact your local human resources representative.

 

Valspar is making this offer to you based on
your talent, energy and experience; not for any confidential or proprietary information that you might possess. You should under
no circumstances disclose to Valspar any trade secrets or other confidential or proprietary information of any former employer.

 

The trade secrets and other confidential or
proprietary information of any former employer belong to that former employer. Valspar does not support unauthorized use or disclosure
of this information. Valspar cannot and will not use this information.

 

Please contact the Law Department immediately
if anyone at Valspar asks you to provide any trade secrets or other confidential or proprietary information of any former employer.

 

Thank you for your cooperation. Please contact
me at 612-375-7705 with any questions.

 

 

 

Certification of Compliance

I certify that I have received, read and
understood Valspar’s Code of Ethics and Business Conduct. I understand what types of conduct violate these policies and are
considered outside the scope of my employment. I promise to comply with the terms of the Code in the future and understand that
violation of these terms may lead to dismissal for cause.

 

 

	Employee Signature	 	Printed Name	 
	 	 	 	 
	 	 	 	 
	Date	 	Location	 

 

 

 

    	5ex4_1a-f8k02272013.htm

Execution Copy

 

 

AMENDMENT NO. 12 TO THE AMENDED AND RESTATED

 

RECEIVABLES PURCHASE AGREEMENT

 

THIS AMENDMENT NO. 12 TO THE AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT (this “Amendment”), dated as of February 27, 2013 is among VOLT FUNDING CORP., a Delaware corporation (the “Seller”), VOLT INFORMATION SCIENCES, INC., a New York corporation, in its individual capacity (“Volt”) and in its capacity as servicer (in such capacity, the “Servicer”), MARKET STREET FUNDING LLC, a Delaware limited liability company (“Market Street”), as a Buyer (the “Buyer”), PNC BANK, NATIONAL ASSOCIATION, a national banking association, (“PNC”), as Buyer Agent for Market Street, (the “Buyer Agent”), and PNC BANK, NATIONAL ASSOCIATION, a national banking association, as Administrator (in such capacity, the “Administrator”).

 

BACKGROUND

 

WHEREAS, the delivery of Volt’s audited financial statements for its fiscal years ended November 1, 2009, October 31, 2010 and October 30, 2011 continue to be delayed, in all cases pending the completion by Volt and its auditors of their analysis regarding the proper treatment of certain accounting principles, and that as a result of that analysis Volt also will or may need to restate certain prior period financials; and

 

WHEREAS, to accommodate the foregoing, the Seller, the Servicer, Volt, the Buyer, the Buyer Agent and the Administrator desire to amend the Amended and Restated Receivables Purchase Agreement dated as of June 3, 2008, among the Seller, the Servicer, Volt, the Buyer, the Buyer Agent and the Administrator (as amended, supplemented and/or otherwise modified prior to giving effect to this Amendment, the “Amended and Restated Receivables Purchase Agreement”);

 

NOW, THEREFORE, for good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:

 

SECTION 1. Definitions.  Capitalized terms used but not defined in this Amendment shall have the meanings assigned to them in the Amended and Restated Receivables Purchase Agreement.

 

SECTION 2. Amendments to Amended and Restated Receivables Purchase Agreement.  Effective as of the date hereof and subject to the satisfaction of the conditions precedent set forth in Section 4 hereof, the Amended and Restated Receivables Purchase Agreement is hereby amended as follows:

 

(a) Clause (i) of the definition of “Expiration Date” in Section 1.01 of the Amended and Restated Receivables Purchase Agreement is hereby deleted in its entirety and replaced with the following:

 

“(i) March 15, 2014,”

 

(b) Section 9.03(b)(ii) of the Amended and Restated Receivables Purchase Agreement is hereby deleted in its entirety and replaced with the following:

 

 

 

  

  

  

“(ii) as soon as practicable and in any event within 100 days after the close of each fiscal year of the Servicer during the term of this Agreement, an audited consolidated balance sheet of the Servicer and its consolidated subsidiaries as at the close of such fiscal year and audited consolidated statements of income and cash flows of the Servicer and its consolidated subsidiaries for such fiscal year, setting forth in each case in comparative form the corresponding figures for the preceding fiscal year and prepared in accordance with GAAP consistently applied throughout the periods reflected therein, all in reasonable detail and certified (with respect to the consolidated financial statements) by independent certified public accountants of recognized standing selected by the Servicer and satisfactory to the Administrator, whose certificate or opinion accompanying such financial statements shall not contain any qualification, exception or scope limitation not satisfactory to the Administrator; provided, however, that with respect to such (1) audited consolidated balance sheets of the Servicer and its consolidated subsidiaries as of the close of the fiscal years ended November 1, 2009 and October 31, 2010 and such audited consolidated statements of income and cash flows of the Servicer and its consolidated subsidiaries for the fiscal years ended November 1, 2009 and October 31, 2010, such balance sheets, statements of income and cash flows shall be furnished to the Administrator and each Buyer Agent no later than March 15, 2013, (2) audited consolidated balance sheet of the Servicer and its consolidated subsidiaries as of the close of the fiscal year ended October 31, 2011 and such audited consolidated statement of income and cash flows of the Servicer and its consolidated subsidiaries for the fiscal year ended October 31, 2011, such balance sheet, statement of income and cash flows shall be furnished to the Administrator and each Buyer Agent no later than May 31, 2013 and (3) audited consolidated balance sheet of the Servicer and its consolidated subsidiaries as of the close of the fiscal year ended October 28, 2012 and such audited consolidated statement of income and cash flows of the Servicer and its consolidated subsidiaries for the fiscal year ended October 28, 2012, such balance sheet, statement of income and cash flows shall be furnished to the Administrator and each Buyer Agent no later than September 30, 2013.”

 

(c) Commencing with the quarterly financial statements required to be delivered by the Servicer for its second fiscal quarter in fiscal year 2013, such quarterly financial statements shall conform to the requirements of Section 9.03(b)(i) of the Amended and Restated Receivables Purchase Agreement.  Prior thereto, the Servicer may, in its discretion, continue to prepare quarterly financial statements in the manner being prepared as of the date of this Amendment.

 

 

 

  

2

  

(d) It is understood and agreed that, in lieu of the requirements set forth in Section 9.01(i)(3) and Section 9.03(i)(3) of the Amended and Restated Receivables Purchase Agreement, the parties have agreed that the Administrator (directly or through its designee, including, without limitation, Protiviti Inc.) may examine Seller’s books and records, directly, to determine the matters referenced in those sections.

 

SECTION 3. Representations and Warranties.  Each of the Seller and Servicer hereby represents and warrants to the Buyer, the Buyer Agent and the Administrator, as of the date hereof, as follows:

 

(a) the representations and warranties of the Seller and the Servicer contained in Article VIII of the Amended and Restated Receivables Purchase Agreement are true and correct in all material respects on and as of the date hereof as though made on and as of such date (except for representations and warranties which apply as to an earlier date, in which case such representations and warranties shall be true and correct as of such earlier date); and

 

(b) no event has occurred and is continuing, or would result from such respective amendment, that constitutes a Termination Event or Potential Termination Event.

 

SECTION 4. Conditions Precedent.  The effectiveness of this Amendment is subject to the satisfaction of all of the following conditions precedent:

 

(a) Administrator shall have received a fully executed counterpart of this Amendment from each of the parties hereto;

 

(b) each representation and warranty of the Seller, Volt, and Servicer contained herein or in any other Purchase Document (after giving effect to this Amendment) shall be true and correct;

 

(c) no Termination Event, as set forth in Section 10.01 of the Amended and Restated Receivables Purchase Agreement, shall have occurred and be continuing;

 

(d) Administrator shall have received (i) a fully executed copy of (A) Amendment No. 10 to the Receivables Sale and Contribution Agreement, dated as of the date hereof between Seller and Volt, (B) the Ninth Amended and Restated Fee Letter, dated as of the date hereof among the Buyer, Buyer Agent and the Seller and (ii) the fees due pursuant to such Ninth Amended and Restated Fee Letter; and

 

(e) all proceedings taken in connection with this Amendment and all documents relating hereto shall be reasonably satisfactory to Administrator, Buyer Agent and the Buyer and their respective counsel, and each such Person shall have received copies of such documents as they may reasonably request in connection therewith, all in form and substance reasonably satisfactory to each such Person.

 

SECTION 5. Restated Financials.  In the event that the analysis described in the recitals to this Amendment results in the restatement of any prior period financial statements of Volt that previously had been furnished by the Servicer to the Administrator, then, as promptly as practicable following any such restatement, the Servicer shall furnish the Administrator with such restated financial statements.

 

 

  

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SECTION 6. Amendment.  Seller, Servicer, Buyer Agent, Buyer and Administrator hereby agree that the provisions and effectiveness of this Amendment shall apply to the Amended and Restated Receivables Purchase Agreement as of the date hereof.  Except as amended by this Amendment, the Amended and Restated Receivables Purchase Agreement remains unchanged and in full force and effect.  This Amendment is a Purchase Document.

 

SECTION 7. THIS AMENDMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK) EXCEPT TO THE EXTENT THAT THE VALIDITY OR PERFECTION OF A SECURITY INTEREST OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR COLLATERAL ARE MANDATORILY GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK.  This Amendment may not be amended, supplemented or waived except pursuant to a writing signed by the party to be charged.  This Amendment may be executed in counterparts, and by the different parties on different counterparts, each of which shall constitute an original, but all together shall constitute one and the same agreement.  The section and other headings contained in this Amendment are for reference purposes only and shall not control or affect the construction of this Amendment or the interpretation hereof in any respect.

 

SECTION 8. Each party hereto hereby covenants and agrees that prior to the date which is one year and one day after the payment in full of all outstanding commercial paper notes or other indebtedness of Market Street, it will not institute against or join any other Person in instituting against Market Street any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings or other similar proceeding under the laws of the United States or any state of the United States.  The agreements set forth in this Section 8 and the parties’ respective obligations under this Section 8 shall survive the termination of this Amendment.

 

SECTION 9. Market Street shall not have any obligation to pay any amounts owing hereunder unless and until Market Street has received such amounts pursuant to the Participation Interest and such amounts are not necessary to pay outstanding commercial paper notes or other outstanding indebtedness of Market Street.  In addition, each party hereto hereby agrees that no liability or obligation of Market Street hereunder for fees, expenses or indemnities shall constitute a claim (as defined in Section 101 of Title 11 of the United States Bankruptcy Code) against Market Street unless Market Street has received cash from the Participation Interest sufficient to pay such amounts, and such amounts are not necessary to pay outstanding commercial paper notes or other indebtedness of Market Street.  The agreements set forth in this Section 9 and the parties’ respective obligations under this Section 9 shall survive the termination of this Amendment.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

  

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IN WITNESS WHEREOF, the parties hereto have executed this Amendment by their duly authorized officers as of the date first above written.

 

	  	  	  	
VOLT FUNDING CORP., as Seller

	  	  	  	  	  	  
	  	  	  	  	  	  
	  	  	  	
By:

	
/s/ Ludwig M. Guarino

	  
	  	  	  	
Name:

	
Ludwig M. Guarino

	  
	  	  	  	
Title:

	
Senior Vice President & Treasurer

	  

 

 

 

 

 

Amendment No.12 to A&R RPA

 

  

S-1

  

	  	  	  	
VOLT INFORMATION SCIENCES, INC.,

  individually and as Servicer

	  	  	  	  	  	  
	  	  	  	  	  	  
	  	  	  	
By:

	
/s/ James Whitney

	  
	  	  	  	
Name:

	
James Whitney

	  
	  	  	  	
Title:

	
Chief Financial Officer

	  

 

 

 

 

 

Amendment No.12 to A&R RPA

 

  

S-2

  

	  	  	  	
MARKET STREET FUNDING LLC, as a

  Buyer

	  	  	  	  	  	  
	  	  	  	  	  	  
	  	  	  	
By:

	
/s/ Doris J. Hearn

	  
	  	  	  	
Name:

	
Doris J. Hearn

	  
	  	  	  	
Title:

	
Vice President

	  

Amendment No.12 to A&R RPA

 

  

S-3

  

	  	  	  	
PNC BANK, NATIONAL ASSOCIATION, as

  a Buyer Agent

	  	  	  	  	  	  
	  	  	  	  	  	  
	  	  	  	
By:

	
/s/ Robyn A. Reeher

	  
	  	  	  	
Name:

	
Robyn A. Reeher

	  
	  	  	  	
Title:

	
Vice President

	  

 

 

 

 

Amendment No.12 to A&R RPA

 

  

S-4

  

	  	  	  	
PNC BANK, NATIONAL ASSOCIATION, as

  Administrator

	  	  	  	  	  	  
	  	  	  	  	  	  
	  	  	  	
By:

	
/s/ Robyn A. Reeher

	  
	  	  	  	
Name:

	
Robyn A. Reeher

	  
	  	  	  	
Title:

	
Vice President

	  

 

 

 

 

 

 

 

Amendment No.12 to A&R RPA

S-5

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