Document:

Exhibit 10.1

TRANSITION
AGREEMENT

          This
Transition Agreement (“Agreement”) is made and effective this 2nd day of
November, 2012, by and between The Valspar Corporation (“Valspar”) and Lori A.
Walker (“Ms. Walker”).

Background

1.          Ms.
Walker is Valspar’s Senior Vice President and Chief Financial Officer (“CFO”). 

2.          Ms.
Walker is currently entitled to retire from employment and service as an
officer with Valspar and, if she signs a three-year non-competition agreement,
to receive her Fiscal Year 2012 cash bonus; immediate vesting of all stock
options, restricted stock and restricted stock units; and retiree medical
benefits under Valspar’s severance policy for officers (the “Basic Severance”).

3.          Valspar
desires that Ms. Walker continue as its CFO while Valspar conducts an orderly
search for a new CFO, and, further, that Ms. Walker provide reasonable
assistance to help in the transition of the duties and responsibilities of her
position to the new CFO. 

4.          In
return for Ms. Walker’s agreement to remain employed as the CFO until the first
day of employment of the new CFO (“Transition Date”), resign as CFO effective
the Transition Date, and continue employment as an officer for 30 days
thereafter to provide assistance to the new CFO at which time Ms. Walker will
retire as an employee and officer (the “Retirement Date”), Valspar is willing
to pay Ms. Walker additional severance benefits over and above the Basic
Severance on the terms and conditions of this Agreement (the “Special
Severance”). 

5.          Ms.
Walker desires to continue as Valspar’s CFO until the Transition Date as
described in paragraph 4 above, and then provide the above-referenced
assistance to the new CFO, in return for the Special Severance, on the terms
and conditions of this Agreement.

             Based
on the foregoing and the terms and conditions below, Valspar and Ms. Walker now
agree as follows.

Agreement

1.          Continued
Employment. Ms. Walker will continue to devote her full working time, attention,
skill and efforts to loyally and diligently work as Valspar’s CFO. Ms. Walker
will comply with all applicable Valspar policies and procedures. 

2.          Basic
Severance. Unless Valspar terminates Ms. Walker’s employment for “Cause”
(as defined in the Change in Control Agreement between Valspar and Ms. Walker
dated December 8, 2010), upon Ms. Walker’s retirement as an officer and
employee on the Retirement Date, and provided that Ms. Walker signs the
non-competition agreement, a copy of which is marked Exhibit A, attached hereto
and incorporated herein, Ms. Walker will receive from Valspar the Basic
Severance as described below.

1

             (a)          Unvested
Restricted Stock and Unvested Restricted Stock Units. As of the last day of
her employment, Ms. Walker will become 100% vested in all unvested restricted
stock and unvested restricted stock units that Valspar previously awarded to
her, subject to any applicable tax withholding requirements at the time of
vesting.

             (b)          Stock
Options. As of the last day of her employment, Ms. Walker will become 100%
vested in all stock options that Valspar previously granted to her, on the
terms and conditions more fully set forth in the plans and agreements governing
those options, and subject to any applicable tax withholding requirements at
the time of vesting. Valspar hereby advises Ms. Walker to contact Linda Colman,
Assistant Secretary of Valspar, at (612) 851-7845 for information regarding
option terms or transactions.

             (c)          Retiree
Medical Benefits. Ms. Walker is eligible to continue medical coverage for
her lifetime and for her current spouse’s lifetime according to the terms and
conditions of the Valspar Officer Retiree Medical Plan for as long as Valspar in
its sole discretion offers such a Plan. Valspar has provided Ms. Walker with a
copy of that Plan under separate cover. Consistent with that Plan, Valspar
retains the rights to change or terminate that Plan or any of its terms in the
future in its sole discretion, and Ms. Walker’s rights in that Plan are subject
to such changes or termination. Valspar hereby advises Ms. Walker to contact
Vince Opat, Director Compensation and Benefits of Valspar, at (612) 851-7977 if
she desires additional information regarding this Plan.

             (d)          Fiscal
Year 2012 Incentive. Ms. Walker will receive her payouts, if any, under
Valspar’s Key Employee Annual Bonus Plan for Fiscal Year 2012, in the form of
an annual cash bonus, and grants of restricted stock and restricted stock units
based on performance in fiscal 2012. The methods, timing, terms and conditions
in that Plan govern Ms. Walker’s rights to that payout.

3.          Continuation
of Certain Other Benefits. Ms. Walker has the rights under applicable law
following the last day of her employment to pay the cost and any administrative
fee for continuing her coverage under Valspar’s group dental and life insurance
programs. Valspar will provide Ms. Walker with information and forms necessary
for her to exercise these rights. Valspar reserves the rights to change or
terminate the programs that it offers to participating current and former
employees in its sole discretion, and Ms. Walker’s rights in those programs are
subject to such changes or termination.

4.          Special
Severance. If Ms. Walker remains continuously employed until the Transition
Date, resigns effective the Transition Date as CFO, and then until the
Retirement Date fully and in good faith provides Valspar with cooperation on
any necessary transition of the duties and responsibilities of the CFO
position, Valspar will offer her a separation agreement, a copy of which is
marked Exhibit B hereto, that contains the terms and conditions of the Special
Severance. For the avoidance of doubt, “cooperation” includes, but is not
limited to, signing a certification to Valspar’s CFO, if so requested, in
connection with Valspar’s filing of any Form 10-K or Form 10-Q report with the
Securities and Exchange Commission on or before the Retirement Date, with such
certification substantially to the effect of the certifications attached as
Exhibits 31.2 and 32.1 to Valspar’s Form 10-K and Form 10-Q filings, covering
the period of time through the Transition Date. 

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5.          At
Will Employment. This Agreement does not modify and is not intended to
modify Ms. Walker’s status as an at will employee of Valspar. It is not a
guarantee of continued employment, just a confirmation of a special
compensation and work arrangements to benefit Ms. Walker and Valspar.

6.          Continued
Salary and Benefits. This Agreement does not affect Ms. Walker’s regular
pay or other fringe benefits up to the Retirement Date. Ms. Walker’s rights and
obligations, if any, in any Valspar qualified plan after the last day of her
employment will be governed by the applicable plan documents. For information
on the timing and other matters pertaining to distributions from the Valspar
401(k) Plan or the Valspar Savings and Retirement Plan, Valspar hereby advises
Ms. Walker to contact Fidelity at (800) 835-5095.

7.          Executive
Perquisites. Except as otherwise provided in this Agreement, all executive
perquisites that Ms. Walker received as an officer of Valspar will terminate on
the Retirement Date, including the monthly car allowance and participation in
the Executive Physical Program. For calendar year 2013, Ms. Walker will be
eligible for reimbursement of financial planning services to the extent such
services are reimbursable to Valspar officers, and the preparation and filing
of Ms. Walker’s tax returns by April 15, 2014, to the extent such services are
reimbursable to Valspar officers.

8.          Termination
of Change of Control Agreement. The Change in Control Agreement between
Valspar and Ms. Walker, and her rights thereunder, will terminate on the
Retirement Date.

9.          Return
of Company Property. Upon the last day of her employment, Ms. Walker will
deliver to Valspar all of its property, including its “Confidential
Information” (defined below), work in progress, research data, equipment,
documents, correspondence, notebooks, reports, formulas, computer programs,
software, software documentation, sales data, business manuals, price lists,
customer lists, samples, raw material information, raw material sourcing
strategies, and all other materials and copies thereof (whether in paper,
electronic or other format) relating in any way to the business of Valspar.
“Confidential Information” means any information not generally known or readily
ascertainable by Valspar’s competitors or the general public, and includes all
of its trade secrets or other confidential and proprietary information.
Confidential Information includes, but is not limited to, Valspar’s acquisition
or divestiture strategy, contemplated product lines, manufacturing processes,
compilations, manufacturing representatives and distributors, business and
financial methods and practices, plans, pricing, marketing, merchandising and
selling techniques and information, research and development data, customer
lists, supplier lists, business strategies, methods, formulas, inventions,
discoveries, raw material sourcing strategies, and information relating to
existing and potential claims. Failure to mark any of the Confidential
Information as confidential or proprietary will not affect its status as
Confidential Information. The foregoing Confidential Information is not
generally known outside of Valspar, is known only to persons inside Valspar or
to certain other trusted persons or entities, provides Valspar with unique value
because it is not known to Valspar’s competitors, was developed at significant
expense to, and effort by, Valspar, and would take a competitor a substantial
amount of time and expense to acquire or duplicate.

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10.          Safeguarding
Confidential Information. Ms. Walker has a continuing obligation to not
use, take, or disclose Valspar’s Confidential Information and hereby affirms
that she will not do so.

11.          Confidentiality.
Except as required by applicable law, Ms. Walker and Valspar will not disclose
to third parties the terms of this Agreement. Ms. Walker may also disclose the
terms of this Agreement to her tax advisors, attorneys, and immediate family
members; and as required by law. Valspar may also disclose the terms of this
Agreement to its tax advisors; attorneys; officers, employees, and directors
with a need to know. 

12.          Knowing
and Informed Agreement. Ms. Walker understands this Agreement and enters
into it knowingly and voluntarily. She has had the opportunity to consult with
an advisor of her choice, and obtain from Valspar answers to questions or
clarification of any terms before signing it.

	
 

	
 

	
 

	
Date
November 2, 2012

	
/s/Lori A.
Walker

	
 

	
Lori A.
Walker

	
 

	
 

	
 

	
Date
November 2, 2012

	
The Valspar
Corporation

	
 

	
 

	
 

	
 

	
By

	
/s/Anthony
L. Blaine

	
 

	
Senior Vice
President, Human Resources

	
 

	
 

	
  Signature and Title

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EXHIBIT A

NONCOMPETITION, NONSOLICITATION AND
CONFIDENTIALITY AGREEMENT

          This
Noncompetition, Nonsolicitation and Confidentiality Agreement (the “Agreement”)
is made this _______ day of _______________ 201_, by and between The Valspar
Corporation (the “Company”), and Lori A. Walker (“Employee”).

BACKGROUND FACTS

          The
Company is a large, worldwide global coatings manufacturer, providing coatings
and coating intermediates to a wide variety of customers. The Company is in a
truly unique position to supply its customers with the coating solutions that
they need because of the size and breadth of its workforce in over 25 countries
and its diverse product offerings that include paints, varnishes, and stains
for “do-it-yourself” projects and professional markets (the “Business”). The
success of its Business depends to a significant extent upon the Company
guarding against the wrongful taking and misuse of its valuable proprietary
information and protecting its relationships and goodwill with its customers.
The Business is very competitive.

          The
Company has employed Employee as its Chief Financial Officer. In that capacity,
Employee had access to and control over certain of the Company’s “Confidential
Information” (defined in Section 9 of that certain “Transition Agreement”
between them) concerning the Business and the goodwill of certain “Company
Customers” (defined below). The Company will be irreparably damaged if any such
Confidential Information or goodwill is disclosed to or comes into the
possession of a “Conflicting Organization” (defined below).

          Employee
recognizes that the Company is legally entitled to protect its rights with
respect to its Confidential Information and goodwill, all of which the Company
owns, without unreasonably impairing Employee’s ability to pursue Employee’s
profession or preventing Employee from using in a new job the skills and
talents that Employee learned elsewhere. For the Company’s legitimate
protection of preventing, for a reasonable period of time, the competitive use
of its relationships with Company Customers and to reasonably prevent the
competitive use of its Confidential Information, Employee is now willing to
make several promises to the Company that reasonably restrict Employee’s right
to compete with the Company for a reasonable period of time after the
termination of Employee’s employment for any reason. The Company is providing
Employee with adequate, new and valuable consideration to compensate Employee
for the reasonable restrictions on Employee’s post-employment competitive
activities in the form of the “Basic Severance” described in the Transition
Agreement. 

          Prior
to entering into this Agreement, Employee has had sufficient time to consider
the Company’s offer and its terms, including the provisions of this Agreement
that reasonably restrict Employee’s right to compete with the Company’s
Business. Employee enters into this Agreement voluntarily, without coercion or
duress. Employee has had the opportunity to consult with legal counsel of
Employee’s choice prior to entering into this Agreement.

5

          NOW,
THEREFORE, based on the above premises and the terms and conditions below, the
Company and Employee hereby agree as follows:

DEFINITIONS

          For
purposes of this Agreement, the following terms shall be defined as set forth
below:

          “Competitive Product” means products,
product lines or services, and each and every component thereof, researched,
invented, developed, designed, produced, marketed, promoted, sold, supported,
serviced, or that are in development or the subject of research by any person
or entity other than the Company that are the same or similar to, perform any
of the same or similar functions as, may be substituted for, or are intended or
used for any of the same purposes as a “Company Product” (defined below).

          “Competitive Research” means any research
or development of any kind or nature conducted by a Conflicting Organization,
including without limitation theoretical and applied research, which is
intended for, or may be useful in, any aspect of the invention, development,
design, production, manufacture, marketing, promotion, sale, support or service
of a Competitive Product.

          “Conflicting Organization” means any person
or entity (regardless of its legal form) that engages in, is about to become
engaged in, or is seeking to become engaged in the research, invention,
development, design, production, promotion, marketing, sale, support, or
service of a Competitive Product or in Competitive Research.

          “Invention(s)” means any and all
inventions, discoveries, ideas, processes, writings, works of authorship,
designs, developments and improvements, whether or not protectable under the
applicable patent, trademark, or copyright statutes, invented, generated,
conceived, or reduced to practice by the Company, alone or in conjunction with
others. Employee is hereby notified that this definition does not apply to any
invention for which no equipment, supplies, facility or trade secret
information of the Company was used and which was developed entirely on
Employee’s own time; and (a) which does not relate (i) directly to the business
of the Company or (ii) to the Company’s actual or demonstrably anticipated
research or development; or (b) which does not result from any work performed
by Employee for the Company.

          “Company Customer(s)” means any person or
entity to whom or to which the Company, or persons under the Company’s
management or supervision, sold, solicited sales, supported, marketed,
serviced, or promoted products or services that constitute a Company Product;
and that Employee did business with for the Company or to whom Employee
represented the Company’s goodwill. The Company’s relationships with Company
Customers are assets of value that the Company has acquired and is entitled to
reasonably protect. 

          “Company Product(s)” mean(s) any products,
product lines, or services (a) that the Company, or persons under the Company’s
management or supervision, performed research regarding, invented, designed,
developed, marketed, promoted, sold, solicited sales of, supported, serviced,
or provided on behalf of the Company in the Business; or (b) with respect to
which Employee at any time received or otherwise obtained or learned
Confidential Information.

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AGREEMENT

          1.          Covenant
Not To Compete. In consideration of the Company’s offer of the “Basic
Severance,” Employee will not directly or indirectly for a period of 36 months
following the last day of Employee’s employment, without the prior written
consent of the Company (which the Company may withhold with or without reason):

	
  

 	
  

 
	
  

 	
           (a)          Become
 engaged or be interested, whether alone or together with or on behalf of or
 through any other person or entity (regardless of its legal form) whether as
 partner, stockholder, agent, officer, director, employee, technical adviser,
 lender, trustee, beneficiary, or otherwise, in, or what is reasonably likely
 to become, a Conflicting Organization, a Competitive Product or Competitive
 Research.

 
	
  

 	
  

 
	
  

 	
           (b)          For
 Employee’s behalf, or for any Conflicting Organization, employ or otherwise
 engage, or offer to employ or otherwise engage, solicit, or cause to be
 solicited, or participate in or promote the solicitation of any person to
 terminate the person’s employment or contractor agreement with the Company to
 become employed by or associated with a Conflicting Organization, or to
 breach that person’s contract (if any) with the Company.

 
	
  

 	
  

 
	
  

 	
           (c)          For
 Employee’s behalf, or for any Conflicting Organization, solicit, communicate
 with, contact, or supervise others who solicit, communicate with, or contact,
 any Company Customer, supplier, licensee, licensor, distributor, vendor, or
 other business relation of the Company in connection with or relating to a
 Competitive Product or Competitive Research. 

 

          The
term “engaged or be interested” as used above, will include, without
limitation: any aspect of the invention, development, design, production,
marketing, promotion, sale, support or service of a Competitive Product; and
performing any of the foregoing by giving advice or technical or financial
assistance, by loan, guarantees, stock transactions or in any other manner to
any person or entity (regardless of its legal form). The foregoing restrictions
are not broader than necessary to protect the Company’s legitimate business
interests, do not unreasonably restrict Employee’s right to work in Employee’s
chosen occupation, and do not contravene public policy.

          The
duration of the above restrictions will be extended for a period equal to the
duration of any breach or default of such covenant by Employee.

          2.          Confidentiality.
Employee will keep all Confidential Information in strict confidence and never
directly or indirectly divulge, furnish, disclose, or use any such Confidential
Information to or for the benefit of any person or entity other than the
Company for as long as the Confidential Information retains the characteristics
of Confidential Information as described hereunder. Employee will treat all
Confidential Information and goodwill entrusted to Employee in a Company
Customer, supplier, licensee, licensor, distributor, vendor, or other business
relation of the Company as a fiduciary, and Employee accepts and undertakes all
of the obligations of a fiduciary, including good faith, trust, confidence, and
candor; and Employee agrees that the Confidential Information and goodwill in a
Company Customer and other business relations of the Company is solely and
exclusively for the benefit of the Company.

7

          The
foregoing obligations of confidentiality shall not apply to any information
that is generally known outside the Company or readily ascertainable by proper
means (for purposes hereof “proper means” does not include obtaining
information by means of court order or subpoena or other judicial or
administrative means) or that hereafter becomes generally known outside of the
Company through no fault of Employee. Confidential Information is not
considered to be “generally known” or “reasonably ascertainable” because it has
been disseminated subject to an obligation to keep such information
confidential.

          Employee
has surrendered all Confidential Information in print or in virtual forms (via
a Company, Company Customer, or personal computer system including documents
contained in email) to the Company.

          3.          Assignment
of Inventions. Employee will give the Company all assistance that the
Company requests to perfect, protect, and use the rights to any Inventions that
Employee hereby assigns to the Company. Without limitation, Employee will sign
all documents and supply all information that the Company deems necessary or desirable
to (a) transfer or record the transfer of Employee’s entire right, title, and
interest in the assigned Inventions; and (b) enable the Company to obtain
patent, copyright or trademark protection for such Inventions anywhere in the
world.

          4.          Remedies.
A violation of this Agreement would cause irreparable harm to the Company, and
the remedy at law for any such violation would be inadequate. Thus, in addition
to any other relief afforded by law, including damages sustained by a breach of
this Agreement and without any necessity of proof of actual damage, the Company
will have the right to enforce this Agreement by specific remedies, which will
include, among other things, temporary and permanent injunctions to stop the
breach, threatened breach, or anticipated breach of this Agreement, it being
the understanding of the parties that both damages and injunctions will be
proper modes of relief and are not to be considered as alternative remedies.
The Company will also be entitled to recover from Employee its attorney’s fees
and costs in any action for breach of this Agreement in which the Company
substantially prevails.

          5.          Amendment.
This Agreement may be amended only by a written instrument executed by the
Company and Employee.

          6.          Choice
of Law and Venue. Because (a) the Company’s principal place of business is
in Hennepin County, Minnesota, (b) many of its significant contracts are
governed by Minnesota law, (c) Employee is currently a resident of Hennepin
County, Minnesota, and (d) it is agreed that it is in the best interests of the
Company and its employees that a uniform body of law consistently interpreted
be applied to their relationships, this Agreement is deemed entered into in the
State of Minnesota. The validity, enforceability, construction, and
interpretation of this Agreement shall be governed by the laws of the State of
Minnesota, without regard to any conflict-of-law or choice-of-law rules.
Employee irrevocably waives Employee’s right, if any, to have the laws of any
state other than the State of Minnesota apply to this Agreement. Any disputes
arising out of or related to this Agreement or any breach or alleged breach
hereof shall be exclusively decided by the Hennepin County District Court in
Minnesota. Employee hereby irrevocably consents to the personal jurisdiction of
this court in connection with any dispute related to this Agreement, and
Employee expressly waives any defense of inconvenient forum.

8

          7.          Blue
Pencil Doctrine. In the event that any provision of this Agreement is
unenforceable under applicable law, the validity or enforceability of the
remaining provisions shall not be affected. To the extent any restriction
against competition is judicially determined to be unreasonable, a court of
competent jurisdiction may reform any such provision to make it enforceable.
The provisions of this Agreement shall, where possible, be interpreted so as to
sustain their legality and enforceability.

          8.          Binding
Agreement. The provisions of this Agreement will be binding upon Employee
and the Company and their respective successors, assigns, heirs and executors
(as the case may be.

          9.          No
Waiver. No term or condition of this Agreement will be deemed to have been
waived nor shall there be any estoppel to enforce any provision hereof, except
by a written instrument executed by the party charged with waiver or estoppel.
The Company’s delay, waiver or failure to enforce any term of this Agreement or
any similar agreement in one instance will not be a waiver of its rights
hereunder with respect to other violations of this or any other agreement.

          10.          Obligation
to Future Employers. Employee has an affirmative obligation to provide a
copy of this Agreement to any prospective employer or, if a copy of this
Agreement is not available, Employee must inform the prospective employer of
all of Employee’s obligations contained within this Noncompetition,
Nonsolicitation, and Confidentiality Agreement.

          11.          Survival.
The obligations of Employee set forth in this Agreement that, by their terms,
restrict Employee’s post-employment competitive activities, survive the
termination of the employment relationship between Employee and the Company and
remain in full force and effect.

          12.          Receipt
of Agreement. Employee represents that Employee has received a copy of this
Agreement for Employee’s records, and has read and understands this Agreement.

          13.          Voluntary
Agreement. Employee enters into this Agreement voluntarily.

          14.          Advice.
Employee represents that Employee has had the opportunity to consult with and
receive advice from Employee’s own attorney, if Employee so chooses, before
signing this Agreement.

          This
Noncompetition, Nonsolicitation and Confidentiality Agreement has been executed
by Employee, and by an authorized manager of the Company, on the dates set
forth below.

 [Signature page follows]

9

 [Signature Page to Noncompetition,
Nonsolicitation and Confidentiality Agreement]

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Date

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Lori A.
 Walker

 
	
  

 	
  

 	
  

 	
  

 
	
 Date

 	
  

 	
  

 	
 The Valspar
 Corporation

 
	
  

 	
  

 	
  

 	
 By

 	
  

 
	
  

 	
  

 	
  

 	
 Title:

 	
  

 

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blank]

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EXHIBIT B

DATE 

Ms. Lori A.
Walker

4580 Ithaca Lane N.

Plymouth, MN 55446 

Dear Lori: 

The following
sets forth the terms and conditions of the end of your employment with The
Valspar Corporation (“Valspar”). 

1.          Background.
Your employment with Valspar hereby terminates
effective this date (the “Retirement Date”). You and Valspar have reached this
agreement on an amicable separation and resolve any and all disputes between
us. Valspar has (i) paid you your final salary and accrued but unused paid time
off through the Retirement Date; and (ii) will provide you with the “Basic
Severance” described in Section 2 of that certain “Transition Agreement”
between you and Valspar to which a copy of this letter was attached as Exhibit
B. You have also executed the non-competition agreement that was attached to
that Transition Agreement as Exhibit A. 

2.          
Valspar’s Promises. In return for “Ms. Walker’s
Promises” (defined in Section 3 below), and subject to the conditions described
in this Section 2, Valspar will extend to you the following consideration (all
and each are “Valspar’s Promises”), which is the “Special Severance” described
in Section 4 of the Transition Agreement: 

	
  

 	
  

 
	
 (a)

 	
 Severance
Pay. Valspar will pay you severance pay in two parts as follows:  

 
	
  

 	
  

 
	
  

 	
           (i)
 provided that you sign this Agreement and deliver it to Valspar’s Senior Vice
 President, Human Resources prior to the expiration of the 21 day
 consideration period and do not exercise your rights to revoke or rescind as
 described in Section 5 below, a lump sum payment of $500,000 (gross), less
 applicable income tax and other legally required withholding on the first
 regular payday on or after the 40th day following the Retirement
 Date (the “Lump Sum Payment”); and

 
	
  

 	
  

 
	
  

 	
           (ii)
 $500,000 (gross), less applicable income tax and other legally required
 withholding, in 12 substantially equal monthly installments (the “Installment
 Payments”), with the first Installment Payment to be paid on the first
 regular payday on or after the Retirement Date and the Installment Payments
 thereafter to be paid on the last regular payday of each month; provided, however, that any of the
 Installment Payments that are otherwise payable on or after March 15 of the
 calendar year following the calendar year in which the Retirement Date occurs
 (the “Short-term Deferral Date”) shall be accelerated and paid on the last
 regular payday occurring on or before the Short-term Deferral Date; and provided, further, that if (A) you do not sign this Agreement
 and deliver it to Valspar’s Senior Vice President, Human Resources prior to
 the expiration of the 21 day consideration period, (B) you exercise your
 rights to revoke or rescind as described in Section 5 below, or (C) you
 violate or contest that certain Noncompetition, Nonsolicitation and
 Confidentiality Agreement between you and Valspar (the “Noncompete”) or
 your cooperation obligations in Section 3(b) below, or any other term of this
 Agreement, then in any such event, Valspar’s obligations in this Section 2(a)
 will be null and void and Valspar’s obligations to pay the Installment
 Payments will immediately terminate, and you will repay to Valspar any
 Installment Payments previously received hereunder. Any such repayment
 obligations are not an adequate remedy for Valspar, particularly if you
 breach or threaten to breach the Noncompete or fail to comply with your
 cooperation obligations, and are in addition to any and all other remedies
 available to Valspar under any of the applicable agreements or applicable law.

 

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In the event
of your death prior to the completion of the foregoing severance payments, your
estate will be paid a lump sum payment equal to the remaining severance
payments to which you would have otherwise been entitled in this Agreement. 

(b)          Fiscal
Year 2013 Cash Bonus. You will be entitled to a prorated annual cash
incentive bonus for Fiscal Year 2013, based on the incentive bonus target
amount (as a percentage of base salary) established for you prior to the
beginning of Fiscal Year 2013. The amount of cash incentive bonus earned for
Fiscal Year 2013, if any, will be (i) based on the same percentage of the
incentive bonus target amount earned by the officers whose bonuses are based on
Corporate results (as opposed to business unit results), (ii) prorated based on
the number of calendar days in Fiscal Year 2013 up to the Retirement Date,
compared to the total number of calendar days in Fiscal Year 2013, and (iii)
paid at the same time as the payments of the annual cash incentive bonus, if any,
to the other officers in the United States. 

(c)          
Fiscal Year 2013 Long-Term Incentives. You will be entitled to each of the
following elements of long-term incentive compensation under Valspar’s Key
Employee Annual Bonus Plan for Fiscal Year 2013 (the “Bonus Plan”): (i) On
October 3, 2012, Valspar awarded you stock options with a value equal to
one-half of your LTI target value under the Bonus Plan, or $450,000. (ii) In
January 2013, you will receive time vesting restricted stock units with a value
equal to 25% of your LTI target value under the Bonus Plan, or $225,000. (iii)
You will participate in the Fiscal Year 2013 performance-based restricted stock
opportunity, with any earned payout values delivered in cash in lieu of
restricted stock, and with the value earned for Fiscal Year 2013, if any, to be
(A) based on the same percentage of the restricted stock target amount earned
by the officers whose incentives are based on Corporate results (as opposed to
business unit results), (B) prorated based on the number of calendar days in
Fiscal Year 2013 up to the Retirement Date, compared to the total number of
calendar days in Fiscal Year 2013, and (C) paid at the same time as any earned
payout is made for the Fiscal Year 2013 cash bonus. The foregoing awards of
stock options and restricted stock units described in clauses (i) and (ii)
above are based on the same method and subject to the same terms and
restrictions applicable under the Key Employee Annual Bonus Plan. 

(d)          Profit
Sharing and Lost ERISA Benefits. Valspar will provide you with its profit
sharing contribution for calendar year 2012 to your Savings & Retirement
account, and pay you a Lost ERISA payment for calendar year 2012 using the same
methods and with the same timing applicable to other Valspar officers. You will
receive the foregoing payments even if the payments to other Valspar officers
occur after the Retirement Date. Such payments will be subject to applicable
tax as required by law. 

12

3.          Ms.
Walker’s Promises. In exchange for Valspar’s Promises
(defined in Section 2 above), you hereby promise as follows (all and each are
“Ms. Walker’s Promises”): 

(a)          Release
of Claims. You hereby fully and finally release, give up, and otherwise
relinquish to the maximum extent permitted by applicable law all of your legal
“Claims” (defined below) against Valspar through the date on which you sign
this Agreement. You will not start any lawsuits against Valspar except if
necessary to enforce the provisions of this Agreement. The money and other
benefits you will receive as set forth in this Agreement are full and fair
payment for the release of all of your Claims and constitute consideration with
a value in excess of anything to which you are entitled. Except as provided in
this Agreement, Valspar does not owe you anything else. 

For purposes
of this Section 3(a), you are releasing, giving up, and relinquishing to the
maximum extent permitted by applicable law all of your legal and equitable
Claims for any relief of any kind or nature against Valspar through the date on
which you sign this Agreement, including but not limited to the following
Claims arising from your employment and the termination of your employment: 

(1)
          All Claims that you
have, even if you do not know about or suspect the Claims; 

(2)          All
Claims for attorney’s fees, costs, and disbursements; 

(3)          All
rights and Claims of age discrimination and retaliation under the Age
Discrimination in Employment Act (“ADEA”), Older Workers Benefits Protection
Act (“OWBPA”), Minneapolis Civil Rights Ordinance (“MCRO”), and Minnesota Human
Rights Act (“MHRA”); and discrimination and retaliation claims under the
Americans with Disabilities Act, Title VII of the Civil Rights Act of 1964, MHRA,
MCRO, and any other applicable federal, state, or local law; 

(4)          All
Claims arising out of your employment and the termination of your employment,
including, for example, breach of contract, breach of implied contract, breach
of covenant of good faith and fair dealing, fraud, illegal termination,
promissory estoppel, wrongful termination, negligence, defamation, retaliation,
invasion of privacy, and infliction of emotional distress; 

(5)          All
Claims for other alleged unlawful employment practices arising out of or
relating to your employment or separation from employment; 

(6)          All
Claims under ERISA; and 

(7)          All
Claims for any other form of compensation and benefits that is not provided in
this Separation Agreement and the Transition Agreement. 

For purposes
of this Section 3(a), “Valspar” means The Valspar Corporation, and its past and
present parent, subsidiary, affiliated, and related entities, and each of them;
and past and present agents, officers, directors, employees, committees,
attorneys, insurers, members, governors, indemnitors, successors or assigns of
any and all of the foregoing entities. Also for purposes of this Section 3(a),
“Ms. Walker” means Lori A. Walker, and any person who has or obtains legal
rights or claims against Valspar through Lori A. Walker. 

13

(b)          Duty
to Cooperate. You will make yourself available on as needed basis as
reasonably required to provide consultation and advice on business matters for
the one year period beginning on the Retirement Date and will otherwise provide
Valspar with cooperation during such one year period. For the avoidance of
doubt, “cooperation” includes, but is not limited to, signing a certification
to Valspar’s CFO, if so requested, in connection with Valspar’s filing of any
Form 10-K or Form 10-Q report with the Securities and Exchange Commission on or
before the Retirement Date, with such certification substantially to the effect
of the certifications attached as Exhibits 31.2 and 32.1 to Valspar’s Form 10-K
and Form 10-Q filings, covering the period of time through the Transition Date.

4.          Additional
Agreements and Understandings. 

(a)
          Valspar does not
admit that it is responsible or legally obligated to you, and in fact Valspar
denies that it is responsible or legally obligated to you even though it has
offered to pay you to release your Claims. 

(b)          Nothing
in this Agreement affects your rights in any benefit plan or program in which
you were a participant while employed by Valspar. The terms and conditions of
the plans and programs control your and Valspar’s rights and obligations. 

(c)          This
Agreement does not prohibit you from filing an administrative charge of
discrimination with, or cooperating or participating in an investigation or
proceeding conducted by, the Equal Employment Opportunity Commission or other
federal or state regulatory or law enforcement agency. If you filed or file a
charge or complaint, the payments described in this Agreement are in complete satisfaction
of any and all Claims in connection with such charge or complaint, and you are
not entitled to any other monetary relief of any kind with respect to the
Claims released in this Agreement. 

(d)          You
have complied with your obligations in Section 9 of the Transition Agreement to
return to Valspar all of its property, including the originals and all copies
of Valspar documents and other records whether on paper or in electronic
format. 

(e)          In
the event you refer any reference requests from prospective employers to the
Senior Vice President, Human Resources, Valspar will limit the information it
provides to your employment dates, job title, rate of compensation, and that
you retired from Valspar. 

(f)          You
will not make disparaging remarks about Valspar, its products, its services, or
its employees such as to place any or all of them in a negative light.
Likewise, Valspar’s Chairman & Chief Executive Officer; Executive Vice
President, Secretary and General Counsel; and Senior Vice President Human
Resources (the officers who have direct knowledge of this Agreement) will not
make disparaging remarks about you such as to place you in a negative light. 

(g)          Except
as required by applicable law, you will not disclose to third parties the terms
of this Agreement. You may also disclose the terms of this Agreement to your
tax advisors, attorneys, and immediate family members. 

14

5.          Rights
to Counsel, Consider, Revoke and Rescind. Valspar
hereby advises and recommends to you that you consult with an attorney prior to
signing this Agreement. 

You understand
that you have 21 days to consider this Agreement, including your waiver of
rights and Claims of age discrimination and retaliation under the ADEA and
OWBPA, beginning on the date on which you received this Agreement. If you sign
this Agreement, then for a period of seven days following the day on which you
signed it, you understand that you will then be entitled to revoke it, and the
Agreement will not become effective or enforceable until the seven-day period
has expired. 

You also
understand that you have the right to rescind your waiver of discrimination and
retaliation claims under the MHRA within 15 calendar days after the date on
which you signed this Agreement. To rescind that waiver, you must put the
rescission in writing and deliver it to Valspar by hand or mail within the
15-day period. If you deliver the rescission by mail, delivery must be: 

(a)          Postmarked
within 15 calendar days after the date on which you signed this Agreement; 

(b)          Addressed
to Valspar, Attention: Senior Vice President, Human Resources, P. O. Box 1461,
Minneapolis, MN 55440; and 

(c)          Sent
by certified mail, return receipt requested. 

You understand
that if you exercise your rights to revoke or rescind as provided above, this
Agreement will be canceled. Your employment will still end on the Retirement
Date, and you will not receive the “Valspar’s Promises.” 

6.          Binding
Effect. This Agreement will bind and benefit you and
anyone who has or claims any legal rights through you. 

7.          Assigns.
You may not assign your rights in this Agreement without Valspar’s written
agreement. Valspar may assign its rights to any successor or purchaser of its
assets or business. 

8.          Entire
Agreement. No modification or amendment of the
Transition Agreement and its Exhibits, including this Separation Agreement,
will be binding unless it is in writing and signed by the parties. The
Transition Agreement and Exhibits A and B, thereto, the Non-Competition
Agreement and this Separation Agreement, respectively, contain the entire
understanding between you and Valspar. Except for the Transition Agreement and
its Exhibits, all and each of which survive the termination of your employment
and remain in full force and effect, the Transition Agreement and its Exhibits
supersede all prior discussions, representations, agreements, guidelines and/or
negotiations between you and Valspar with respect to the matters therein. 

9.          Knowing,
Voluntary Agreement. You have read this Agreement
carefully and understand all of its terms. You have had the opportunity to
discuss this Agreement with your own attorney prior to signing it. You enter
into this Agreement voluntarily without any pressure or coercion from Valspar.
In entering into this Agreement, you have not relied on any statements by
Valspar, its employees, or attorneys, other than the Valspar’s Promises in this
Agreement. 

15

10.          Severability. If any provision of this
Agreement shall be held by any court of competent jurisdiction to be illegal,
invalid or unenforceable for any reasons, such decision will not affect the
validity of any remaining portions which will remain in full force and effect
as if this Agreement had been more narrowly drawn so as not to be illegal,
invalid or unenforceable, and such illegality, invalidity or unenforceability
shall have no effect upon and shall not impair the enforceability of any other
provision of this Agreement. 

11.          Governing Law/Forum Selection. Because (a)
Valspar’s principal place of business is in Hennepin County, Minnesota, (b)
many of its significant contracts are governed by Minnesota law, (c) you are
currently a resident of Hennepin County, Minnesota, and (d) it is agreed that
it is in the best interests of Valspar and its employees that a uniform body of
law consistently interpreted be applied to their relationships, this Agreement
is deemed entered into in the State of Minnesota. The validity, enforceability,
construction, and interpretation of this Agreement shall be governed by the
laws of the State of Minnesota, without regard to any conflict-of-law or
choice-of-law rules. You irrevocably waive your right, if any, to have the laws
of any state other than the State of Minnesota apply to this Agreement. Any
disputes arising out of or related to this Agreement or any breach or alleged
breach hereof shall be exclusively decided by the Hennepin County District
Court in Minnesota. You hereby irrevocably consent to the personal jurisdiction
of this court in connection with any dispute related to this Agreement, and you
expressly waive any defense of inconvenient forum. 

12.          
Waiver. Your or Valspar’s waiver or failure to enforce
any violation or provision of this Agreement will not constitute a waiver of
either of our respective rights hereunder with respect to any violation or
provision of this Agreement, and will be effective only if in writing, signed
by you or the Senior Vice President of Human Resources for Valspar as the case
may be, and then only in the specific instance and for the specific purpose
given. 

13.          IRS
Code Section 409A. To the extent any provision of this
letter may be deemed to provide a benefit to you that is treated as non-qualified
deferred compensation pursuant to Section 409A of the Internal Revenue Code of
1986, as amended) (“Code Section 409A”), such provision shall be
interpreted in a manner that qualifies for any applicable exemption from
compliance with Code Section 409A or, if such interpretation would cause any
reduction of benefit(s), such provision shall be interpreted (if reasonably
possible) in a manner that complies with Code Section 409A and does not cause
any such reduction. To the extent required by Code Section 409A, references
herein to your “termination of employment” shall refer to your “separation from
service” (within the meaning of Code Section 409A) with Valspar (as defined to
include any affiliates required to be taken into account for that definition of
separation from service). 

16

Lori, on
behalf of Valspar, I thank you for your service and wish you all the best in
the future. Please sign and date the counterpart below if you desire to enter
into this Agreement. You may contact me at (612) 851-7988 if you have questions
or concerns about this Agreement. 

Sincerely, 

The Valspar
Corporation 

	
  

 	
  

 	
  

 
	
 By

 	
  

 	
  

 
	
  

 	
 Anthony L.
 Blaine

 	
  

 
	
  

 	
 Senior Vice
 President, Human Resources

 	
  

 

	
  

 	
  

 	
  

 
	
 Read,
 agreed, and accepted this______ day of ________, 2013.

 
	
  

 	
  

 	
  

 
	
 Lori A. Walker

 
	
  

 	
  

 	
  

 

17HR-2012.9.30-Ex.10.11

EXHIBIT 10.11
HEALTHCARE REALTY TRUST INCORPORATED 
AMENDMENT TO SECOND AMENDED AND RESTATED EXECUTIVE RETIREMENT PLAN
This Amendment to the Second Amended and Restated Executive Retirement Plan (the “Amendment”) is effective December 31, 2012 and amends the Second Amended and Restated Executive Retirement Plan (the “Plan”) that was effective December 31, 2008.  

1.Defined Terms. Capitalized terms that are used herein but not defined, shall have the meanings attributed to such terms in the Plan.

2.    Amendment of Section 4.1.
Section 4.1 of the Plan shall be deleted in its entirety and the following substituted in its stead:
“4.1 Amount of Retirement Benefit
4.1 The annual benefit payable to a Participant for his remaining lifetime upon Retirement at a Normal Retirement Date under the Plan shall be equal to (i) 60% of Final Average Earnings plus (ii) six percent (6%) of Final Average Earnings multiplied by years of Service after age 60, limited to a maximum of five (5) years minus (iii) 100% of Other Retirement Income.  The annual retirement benefit shall be increased annually as of January 1 of each year by an amount equal to the percentage change shown year-over-year (based on the most recent reported month), as reported in the Consumer Price Index for All Urban Consumers (CPI-U): Selected Areas, all items index, South urban region, size B/C (50,000 to 1,500,000), published by the U.S. Department of Labor, or applicable successor index (“CPI”). Notwithstanding anything herein to the contrary, the maximum annual benefit payable under this Plan (the “Maximum Benefit Amount”) shall not exceed $896,000, subject to: (i) the CPI increases to the Maximum Benefit Amount effective following Retirement, as set forth in this Section 4.1 above; and (ii) beginning on January 1, 2016, CPI increases to the Maximum Benefit Amount without regard to the Retirement of any Participant.”

3.    Miscellaneous

3.1    Nothing contained herein will confer upon any Participant the right to be retained in the service of the Company, nor will it interfere with the Company’s right to discharge or otherwise deal with Participants without regard to the existence of this Plan.

3.2    In the event that it shall become impossible for the Company to perform any act required by this Amendment or the Plan due to regulatory or other constraints, the Company may perform such alternative acts as most nearly carries out the intent and purpose of this Amendment and the Plan and is in the best interests of the Company, provided that such alternative acts do not violate Code Section 409A.

3.3    This Amendment and the Plan shall be interpreted and administered consistent with Code Section 409A. 

IN WITNESS WHEREOF, Healthcare Realty Trust Incorporated has caused this Amendment to be executed by its duly authorized officer this 1st day of November, 2012, effective as described above.
	
		
	HEALTHCARE REALTY TRUST INCORPORATED

	By:
	/s/ John M. Bryant, Jr.

	Name:
	John M. Bryant, Jr.

	Title:
	Executive Vice President and General Counsel

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