Document:

exv10w1

 

Exhibit 10.1

TRM AND eFUNDS

SETTLEMENT TERM SHEET

	 	 	TRM and eFunds have agreed in principle as follows:
	 
	•	 	TRM will pay eFunds $2,500,000 together with any current outstanding accounts receivable,
upon the execution of a mutually acceptable Settlement and Release Agreement (“Agreement”)
between the parties. For the purpose of clarity, $800,000 of this payment will be to settle
eFunds’ outstanding receivables for 2006, with the balance applied to 2007. The Agreement,
including but not limited to the termination of the MSA, is contingent upon and shall become
effective on eFunds’ receipt of this payment.
	 
	•	 	TRM will fully release all claims, demands and potential actions with respect to eFunds’
demands for payment of the 2005 Annual Minimum and the 2006 Annual Minimum. TRM has
previously claimed set off and counterclaims for these amounts in excess of approximately
$597,000 for the 2005 Annual Minimum and $857,000 for 2006.1
	 
	•	 	eFunds and TRM will fully release each other from any claims that they may have against
each other under the MSA.
	 
	•	 	The parties will agree to terminate the MSA.
	 
	•	 	TRM and eFunds will work, in good faith, to produce an orderly transition plan whereby TRM
will assume, either directly or through an alternative outsource provider, all of the Managed
Services currently being performed by eFunds under the MSA. Assuming that a prompt resolution
can be achieved, TRM agrees that this transition shall be completed no later than March 31,
2008 (the “Transition Date”).
	 
	•	 	During the transition described in the immediately preceding paragraph, TRM shall continue
to pay eFunds for any services actually performed by eFunds for TRM at the prices currently
being charged and in the same manner as set forth in the MSA. eFunds shall perform all
services in good faith and at a level that is currently being provided by eFunds.
	 
	•	 	In consideration for the payment of $2,500,000 and other terms and conditions herein,
eFunds will provide Processing Services as follows:

	 	(a)	 	Term. For four years, commencing December 1, 2007 and ending
November 30, 2011.
	 
	 	(b)	 	TRM shall pay eFunds $0.0300 per Transaction processed. This
amount includes transaction costs and dial up service, but does not include
sponsorship or leased lines, which will be billed separately to TRM.

 

			
	1	 	All capitalized terms not specifically defined herein
shall have the same meaning as set forth in the MSA.

 

 

	 	(c)	 	eFunds Processing Services shall be consistent with the Service
Levels required at present by the MSA, but eFunds shall provide:

	 	(i)	 	Terminal IDs. eFunds will provide terminal IDs
and will activate terminals on a daily (business day) basis. Requests
for “SOLD” machines that are received by 11:00 AM (CST) will be
activated with the next business day’s scheduled roll-in (2:00 AM —
CST). Requests for “PLACED/MANAGED” machines that are received by
11:00 AM (CST) on Mondays will be included in the scheduled Thursday
roll-in (2:00 AM — CST) and requests received by 11:00 AM (CST) on
Wednesdays will be included in the scheduled Monday roll-in (2:00 AM -
CST). Roll-ins are not performed on holidays or designated system
“RED” days.
	 
	 	(ii)	 	On all merchant owned machines processed
through eFunds, eFunds will charge such merchants any and all Reg E
fees incurred through those machines directly through such merchants
settlement accounts, provided such accounts are still accurate and
valid. To the extent such account information is no longer valid or if
such account is no longer active, or with respect to any TRM owned
machines, any Reg E fees incurred shall be chargeable directly to TRM
and it will be up to TRM to recoup such fees from such merchants.
	 
	 	(iii)	 	Interchange payment. eFunds will work in good
faith with TRM to consider a processing change that would permit
payment of interchange fees through eFunds (to permit better auditing
of the fees).

	 	(d)	 	Preferred Provider. Provided that eFunds maintains Processing
Services in accord with the Service Levels now in the MSA, TRM shall not move
any ATMs that are currently processing with eFunds to another Processor. TRM
shall use eFunds as a service provider, pursuant to the terms of this agreement
for all future acquired ATMs, provided that TRM is contractually permitted to
do so and consistent with heritage relationships associated with such machines.
Additionally, eFunds shall have a right of first refusal as to ATMs presently
under contract to other service providers when that contract is expiring and/or
subject to renewal.
	 
	 	(e)	 	Volume. TRM shall use its best commercial efforts to achieve a
dollar value of Processing Services of at least $1,000,000 (“Volume Amount”)
for each of the four years of the Term. This figure is based on current number
of transaction volume. For each month in the term, the Volume Amount may be
adjusted downward in proportion to any decrease in volume based on a 6-month
rolling average.

 

 

	•	 	Notwithstanding the foregoing, eFunds shall continue to remit to TRM all net revenue
generated by the PetroCan agreement as set forth in the Purchase Agreement for the remainder
of the existing term of such agreement.
	 
	•	 	eFunds shall maintain all records relating to TRM and its customers regarding ATM
transaction levels, residual payments, customer accounts, and customer complaints for 4 years
from the date of any Settlement and Release Agreement.
	 
	 	 	Dated this 17th day of December, 2007.

	 	 	 	 	 
	 	TRM Corporation
 	 
	 	By  	/s/ Richard Stern 	 
	 	 	Richard Stern 	 
	 	 	President and CEO 	 
	 

     Dated this 18th day of December, 2007

	 	 	 	 	 
	 	EFD | eFUNDS CORPORATION
 	 
	 	By  	/s/ Gary Norcross 	 
	 	 	Gary Norcross 	 
	 	 	President and Chief Operations Officer,

Transaction Processing Services
Fidelity National Information ServicesExhibit 10.2 

THE VALSPAR CORPORATION

1991 STOCK OPTION PLAN

(as amended through August 21, 2007)

 

	
            1.
 	
            PURPOSES OF THE PLAN  
 

The purposes of the 1991 Stock Option Plan (the "Plan") are (i) to enhance the ability of The Valspar Corporation (the "Company") and its subsidiary companies to attract and retain superior personnel and (ii) to stimulate and reward their interest and initiative.  The Plan is designed to enable key officers and employees, and certain other key individuals who perform services for the Company, to contribute to the Company's strategic performance objectives by making such individuals eligible to receive options to purchase common stock of the Company as provided herein.  Subject to the provisions of the Plan, options may contain such terms and conditions as shall be required so as to be either nonqualified stock options or incentive stock options as defined in Section 422 of the Internal Revenue Code of 1986, as amended (the "Code").  Subject to such limits as may be imposed by existing or future laws or by
the Plan, nonqualified stock options or incentive stock options or both may be granted to eligible individuals.

 

	
            2.
 	
            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 25,000,000 shares, and may be unissued shares or reacquired shares.  If any 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.

 

	
            3.
 	
            ADMINISTRATION  
 

The Plan shall be administered by a committee (the "Committee"), appointed from time to time by the Company's Board of Directors (the "Board"), consisting of not less than two members of the Board. Each Committee member shall be (a) non-employee director within the meaning of Rule 16b-3 under the Securities Exchange Act of 1934 (the "Exchange Act") or any successor Rule and (b) an outside director within the meaning of Section 162(m) of the Internal Revenue Code of 1986, as amended, and the rules and regulations thereunder.  Except as provided below, the Committee shall determine from time to time (i) the individuals to whom grants will be made; (ii) the number of shares to be granted; and (iii) the terms and provisions of each option (which need not be identical).  Except as provided below, each grant shall be in such form and content as the Committee shall determine.

The Committee may from time to time adopt rules for carrying out the Plan and for its interpretation and construction which rules shall be final, conclusive and binding on all parties.  All determinations of the Committee shall be made by a majority of the Committee.  Any determination reduced to writing and signed by all members shall be as effective as if it had been made by a majority vote at a duly constituted meeting.

The Company’s Chief Executive Officer may, on a discretionary basis and without Committee review or approval, grant options to purchase up to 5,000 shares each to new employees of the Company who are not officers of the Company.  Such discretionary option grants shall not exceed 25,000 shares in total in any fiscal year.  Subject to the foregoing limitations, the Chief Executive Office shall determine from time to time (i) the new employees to whom grants will be made, (ii) the number of shares to be granted, and (iii) the terms and provisions of each option (which need not be identical).

	
            4.
 	
            ELIGIBILITY
 

Options will be granted only to salaried officers and employees of the Company or of a subsidiary (as defined in Section 425 of the Code) and to any other individual who performs services for the Company and contributes to its strategic performance objectives, including, without limitation, members of the Board of Directors, consultants and advisors ("Optionee"); provided, however, that a consultant or advisor shall not be eligible to receive stock options hereunder unless such consultant or advisor renders bona fide services to the Company or a subsidiary and such services are not in connection with the offer or sale of securities in a capital-raising transaction.

Notwithstanding any other provisions of the Plan, the maximum number of shares of Common Stock that may be covered by option grants to a person covered by Section 162(m) of the Code during any fiscal year shall be 500,000 shares.

	
            5.
 	
            GRANT DATE
 

Annual option grants for fiscal year 2007 and subsequent fiscal year annual grants will be granted on the date of the October board meeting.  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.  Grant date of options granted on an individual basis will be determined by the Compensation Committee.

 

	
            6.
 	
            OPTION PRICE
 

The exercise price of each option shall be equal to the closing price of one share of Stock on the New York Stock Exchange on the date of grant.

 

	
            7.
 	
            EXERCISE OF OPTION 
 

The Committee may prescribe at the time of grant that the option will be exercisable in full or in installments at any time or from time to time.  Optionee is not required to exercise options in the sequential order that the options were granted.  All or part of the purchase price may be paid by surrender (or deemed surrender through attestation) of previously acquired shares of common stock which has been owned for more than six months on the date of surrender 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.

 

	
            8.
 	
            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.

 

	
            9.
 	
            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 or Optionee's legal representative or guardian or a permitted transferee may exercise the option.

 

	
            10.
 	
            DILUTION OR OTHER ADJUSTMENTS
 

In the event of any change in the outstanding common stock of the Company by reason of a stock dividend, stock split, reverse stock split, combination of shares, spin-off, dividend (other than regular, quarterly cash dividends), recapitalization, merger or similar event, the number of shares of common stock then subject to this Plan, including shares subject to outstanding options, the other numbers of shares of common stock provided in this Plan, and the exercise price of outstanding options shall be adjusted appropriately by the Committee to reflect the change in outstanding shares of common stock, in order to provide participants with the same relative rights before and after such adjustment.

 

	
            11.
 	
            MERGERS, ACQUISITION 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.

 

	
            12.
 	
            CHANGE OF CONTROL
 

Upon any Change of Control, each outstanding option shall immediately become exercisable in full for the remainder of its term without regard to any vesting or installment exercise provisions then applicable to the option.  This section applies to all options outstanding under this Plan as of June 16, 1999, as well as to all options granted under this Plan thereafter.  For purposes of this Plan, the term “Change of Control” means any of the following:

	
             
 	
            A.
 	
            Any individual, entity or group becomes a beneficial owner (as defined in Rule 13d-3 of the Securities Exchange Act of 1934), directly or indirectly, of at least 20% but less than 50% of the voting stock of the Company in a transaction that is not previously approved by the Board of Directors of the Company;
 

	
             
 	
            B.
 	
            Any individual, entity or group becomes a Beneficial Owner, directly or indirectly, of at least 50% of the voting stock of the Company;
 

	
             
 	
            C.
 	
            The persons who were directors of the Company immediately prior to any contested election or series of contested elections, tender offer, exchange offer, merger, consolidation, other business combinations, or any combination of the foregoing cease to constitute a majority of the members of the Board of Directors of the Company immediately following such occurrence;
 

	
             
 	
            D.
 	
            Any merger, consolidation, reorganization or other business combination where the individuals or entities who constituted the Company’s shareholders immediately prior to the combination will not immediately after the combination own at least 50% of the voting securities of the business resulting from the combination;
 

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            E.
 	
            The sale, lease, exchange or other transfer of all or substantially all the assets of the Company to any individual, entity or group not affiliated with the Company;
 

	
             
 	
            F.
 	
            The liquidation or dissolution of the Company; or
 

	
             
 	
            G.
 	
            The occurrence of any other event by which the Company no longer operates as an independent public company.
 

 

	
            13.
 	
            AMENDMENT OF THE PLAN
 

The Plan may be amended, suspended or discontinued in whole or in part at any time and from time to time by the Board, provided, however, that no amendment to increase the number of shares with respect to which options may be granted, or to increase materially the benefits accruing to Optionees, or to materially modify the requirements as to eligibility, shall be effective without stockholder approval where the failure to obtain such approval would adversely affect the compliance of the Plan with Rule 16b-3 under the Exchange Act or successor rule and with other applicable law, including the Code.  No amendment of the Plan shall adversely affect in a material manner any right of any Optionee with respect to a prior grant without such Optionee's written consent.

 

	
            14.
 	
            DURATION OF THE PLAN
 

Incentive Stock Options may be granted from time to time during a period of ten (10) years from the effective date of the Amended Plan. Nonqualified stock options may be granted from time to time from the effective date until the Plan is discontinued or terminated by the Board.

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