exv10w1



 





EXHIBIT 10.1




BRADY CORPORATION RESTORATION PLAN




Restated Effective as of January 1, 2008




 









 








TABLE OF CONTENTS




	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	ARTICLE I     INTRODUCTION	 	 	1	 
	 
	 	 	 	 	 	 
	1.1
	 	Establishment and Effective Date	 	 	1	 
	1.2
	 	Purpose	 	 	1	 
	1.3
	 	Section 409A	 	 	1	 
	 
	 	 	 	 	 	 
	ARTICLE II     DEFINITIONS	 	 	2	 
	 
	 	 	 	 	 	 
	2.1
	 	Account	 	 	2	 
	2.2
	 	Additional Employer Contribution	 	 	2	 
	2.3
	 	Additional Matching Contribution	 	 	2	 
	2.4
	 	Affiliate	 	 	2	 
	2.5
	 	Beneficiary	 	 	2	 
	2.6
	 	Board	 	 	2	 
	2.7
	 	Code	 	 	2	 
	2.8
	 	Committee	 	 	2	 
	2.9
	 	Compensation	 	 	2	 
	2.10
	 	Elective Deferral	 	 	3	 
	2.11
	 	Elective Deferral Account	 	 	3	 
	2.12
	 	Eligible Employee	 	 	3	 
	2.13
	 	Employee	 	 	3	 
	2.14
	 	Employer	 	 	3	 
	2.15
	 	Employer Contribution	 	 	3	 
	2.16
	 	Employer Contribution Account	 	 	3	 
	2.17
	 	Excess Compensation	 	 	3	 
	2.18
	 	Matching Contribution	 	 	3	 
	2.19
	 	Matching Contribution Account	 	 	3	 
	2.20
	 	Participant	 	 	3	 
	2.21
	 	Plan	 	 	3	 
	2.22
	 	Plan Year	 	 	3	 
	2.23
	 	Qualified 401(k) Plan	 	 	3	 
	2.24
	 	Separation from Service	 	 	3	 
	2.25
	 	Specified Employee	 	 	6	 
	2.26
	 	Unforeseeable Emergency	 	 	7	 
	 
	 	 	 	 	 	 
	ARTICLE III     PARTICIPATION	 	 	8	 
	 
	 	 	 	 	 	 
	3.1
	 	Eligibility to Participate	 	 	8	 
	3.2
	 	Continuation of Eligibility	 	 	8	 






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	 	 	 	 	Page	 
	ARTICLE IV     DEFERRALS	 	 	9	 
	 
	 	 	 	 	 	 
	4.1
	 	Elective Deferrals	 	 	9	 
	4.2
	 	Additional Rules Governing Deferral Elections	 	 	9	 
	4.3
	 	Matching Contribution	 	 	10	 
	4.4
	 	Employer Contribution	 	 	10	 
	4.5
	 	Additional Matching Contribution	 	 	10	 
	4.6
	 	Additional Employer Contribution	 	 	10	 
	 
	 	 	 	 	 	 
	ARTICLE V     ACCOUNTS AND CREDITS	 	 	11	 
	 
	 	 	 	 	 	 
	5.1
	 	Credits to Accounts	 	 	11	 
	5.2
	 	No Funding	 	 	11	 
	5.3
	 	Deemed Investment of Accounts	 	 	11	 
	5.4
	 	Reports to Participants	 	 	12	 
	 
	 	 	 	 	 	 
	ARTICLE VI     VESTING	 	 	13	 
	 
	 	 	 	 	 	 
	ARTICLE VII     MANNER AND TIMING OF DISTRIBUTION	 	 	14	 
	 
	 	 	 	 	 	 
	7.1
	 	Payment of Benefits	 	 	14	 
	7.2
	 	Payment Election	 	 	15	 
	7.3
	 	Financial Hardship	 	 	16	 
	7.4
	 	Delayed Distribution	 	 	16	 
	7.5
	 	Inclusion in Income Under Section 409A	 	 	17	 
	7.6
	 	Domestic Relations Order	 	 	17	 
	7.7
	 	De Minimis Amounts	 	 	18	 
	 
	 	 	 	 	 	 
	ARTICLE VIII     PLAN OPERATION AND ADMINISTRATION	 	 	19	 
	 
	 	 	 	 	 	 
	8.1
	 	Administrator	 	 	19	 
	8.2
	 	Committee	 	 	19	 
	8.3
	 	Authority to Act	 	 	19	 
	8.4
	 	Information from Participants	 	 	19	 
	8.5
	 	Committee Discretion	 	 	19	 
	8.6
	 	Committee Members’ Conflict of Interest	 	 	20	 
	8.7
	 	Governing Law	 	 	20	 
	8.8
	 	Expenses	 	 	20	 
	8.9
	 	Minor or Incompetent Payees	 	 	20	 
	  8.10
	 	Withholding	 	 	20	 
	  8.11
	 	Indemnification	 	 	21	 
	 
	 	 	 	 	 	 
	ARTICLE IX     CLAIMS PROCEDURE	 	 	22	 
	 
	 	 	 	 	 	 
	9.1
	 	Claims	 	 	22	 






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	 	 	 	 	Page	 
	9.2
	 	Review	 	 	22	 
	9.3
	 	Disability	 	 	23	 
	 
	 	 	 	 	 	 
	ARTICLE X     AMENDMENT AND TERMINATION	 	 	24	 
	 
	 	 	 	 	 	 
	ARTICLE XI     MISCELLANEOUS PROVISIONS	 	 	25	 
	 
	 	 	 	 	 	 
	11.1
	 	Headings	 	 	25	 
	11.2
	 	No Contract of Employment	 	 	25	 
	11.3
	 	Rights of Participants and Beneficiaries	 	 	25	 
	11.4
	 	Nonalienation of Benefits	 	 	25	 
	11.5
	 	Tax Treatment	 	 	25	 
	11.6
	 	Other Plans and Agreements	 	 	25	 
	11.7
	 	Number and Gender	 	 	26	 
	11.8
	 	Plan Provisions Controlling	 	 	26	 
	11.9
	 	Severability	 	 	26	 
	  11.10
	 	Evidence Conclusive	 	 	26	 
	  11.11
	 	Status of Plan Under ERISA	 	 	26	 
	  11.12
	 	Name and Address Changes	 	 	27	 
	  11.13
	 	Assignability by Corporation	 	 	27	 
	  11.14
	 	Special rule for 2005-2007	 	 	27	 






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ARTICLE I




INTRODUCTION




1.1 Establishment and Effective Date





	 	 	Brady Corporation established the Brady Corporation Restoration Plan effective as of January
1, 2000, and it is hereby restated effective as of January 1, 2008. This document describes
how this Plan has been administered for periods after 2004 and prior to January 1, 2008 and
how it shall be administered for periods after 2007.





1.2 Purpose





	 	 	The Plan is intended to restore to key management employees of Brady and its affiliates
income deferral opportunities and employer contributions they would have had under the
Company’s tax qualified Brady Matched 401(k) Plan and Brady Funded Retirement Plan but for
the limitations of the Internal Revenue Code of 1986, as amended and to provide certain
additional benefits.





1.3 Section 409A





	 	 	This document is intended to comply with the provisions of Section 409A of the Internal
Revenue Code and shall be interpreted accordingly. If any provision or term of this
document would be prohibited by or inconsistent with the requirements of Section 409A of the
Code, then such provision or term shall be deemed to be reformed to comply with Section 409A
of the Code.




 









 











ARTICLE II




DEFINITIONS



The following terms, when used in the Plan with initial capital letters, shall have the meaning
given to them in this Article.





	2.1	 	Account shall mean the account maintained to record a Participant’s interest in the Plan and
shall be composed of the following subaccounts: Elective Deferral Account, Matching
Contribution Account and Employer Contribution Account.
	 
	2.2	 	Additional Employer Contribution shall mean the amount credited to a Participant pursuant to
Section 4.6.
	 
	2.3	 	Additional Matching Contribution shall mean the amount credited to a Participant pursuant to
Section 4.5.
	 
	2.4	 	Affiliate shall mean each incorporated or unincorporated trade or business in which Brady
Corporation directly or indirectly owns, as applicable, eighty percent (80%) of the voting
stock or eighty percent (80%) of the capital or profits interest.
	 
	2.5	 	Beneficiary means the person, persons, or entity designated by the Participant to receive any
benefits payable under the Plan on or after the Participant’s death. Each Participant shall
be permitted to name, change or revoke the Participant’s designation of a Beneficiary in
writing on a form and in the manner prescribed by the Employer; provided, however, that the
designation on file with the Employer at the time of the Participant’s death shall be
controlling. Should a Participant fail to make a valid Beneficiary designation or leave no
named Beneficiary surviving, any benefits due shall be paid to such Participant’s spouse, if
living; or if not living, then any benefits due shall be paid to such Participant’s estate. A
Participant may designate a primary beneficiary and a contingent beneficiary; provided,
however, that the Employer may reject any such instrument tendered for filing if it contains
successive beneficiaries or contingencies unacceptable to it. If all Beneficiaries who
survive the Participant shall die before receiving the full amounts payable hereunder, then
the payments shall be paid to the estate of the Beneficiary last to die.
	 
	2.6	 	Board shall mean the Board of Directors of Brady Corporation.
	 
	2.7	 	Code shall mean the Internal Revenue Code of 1986, as amended, and any regulations issued
thereunder.
	 
	2.8	 	Committee shall mean the Compensation Committee of the Board.
	 
	2.9	 	Compensation shall mean the total compensation payable to a Participant by the Employer for
any period (prior to elective deferrals under this Plan or any other plan or deferral
agreement) required to be reported as wages on the Employee’s Form W-2 for income tax
purposes, but reduced by all of the following items (even if includable in




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	 	 	 gross income): reimbursements or other expense allowances, fringe benefits (cash and
non-cash), moving expenses and welfare benefits.






	2.10	 	Elective Deferral shall mean the portion of a Participant’s Compensation that is reduced and
credited to his Elective Deferral Account pursuant to his election under Section 4.1.
	 
	2.11	 	Elective Deferral Account shall mean the account maintained to record a Participant’s
interest in the Plan attributable to his Elective Deferrals.
	 
	2.12	 	Eligible Employee shall mean an Employee eligible under Section 3.1 and 3.2(a).
	 
	2.13	 	Employee shall mean an employee of the Employer.
	 
	2.14	 	Employer shall mean Brady Corporation and any Affiliate that adopts the Plan with the
approval of the Board.
	 
	2.15	 	Employer Contribution shall mean the amount credited to a Participant pursuant to Section
4.4.
	 
	2.16	 	Employer Contribution Account shall mean the account maintained to record a Participant’s
interest in the Plan attributable to Employer Contributions and Additional Employer
Contributions on his behalf.
	 
	2.17	 	Excess Compensation shall mean the portion of Compensation earned by a Participant during a
Plan Year after the date the Compensation he has earned during the Plan Year equals the limit
in Code Section 401(a)(17) for such Plan Year.
	 
	2.18	 	Matching Contribution shall mean the amount credited to a Participant pursuant to Section
4.3.
	 
	2.19	 	Matching Contribution Account shall mean the account maintained to record a Participant’s
interest in the Plan attributable to Matching Contributions and Additional Matching
Contributions on his behalf.
	 
	2.20	 	Participant shall mean (i) an Eligible Employee under Section 3.1 and 3.2(a) or (ii) a former
Eligible Employee who has an Account under the Plan.
	 
	2.21	 	Plan shall mean the Brady Corporation Restoration Plan, as set forth in this document, as the
same may be amended or restated from time to time.
	 
	2.22	 	Plan Year shall mean the calendar year.
	 
	2.23	 	Qualified 401(k) Plan shall mean the Brady Matched 401(k) Plan (or any successor plan thereto
qualified under Code §§ 401(a) and 401(k)).
	 
	2.24	 	Separation from Service shall have the meaning set forth in IRS Regulation Section 1.409A-1
the requirements of which are summarized in part as follows:




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	 	(a)	 	In General. The Participant shall have a Separation from Service with
the Employer if the Participant dies, retires, or otherwise has a termination of
employment with the Employer. However, for purposes of this Section 2.24, the
employment relationship is treated as continuing intact while the individual is on
military leave, sick leave, or other bona fide leave of absence if the period of such
leave does not exceed six months, or if longer, so long as the individual retains a
right to reemployment with the Employer under an applicable statute or by contract. For
purposes of this paragraph (a) of this Section 2.24, a leave of absence constitutes a
bona fide leave of absence only if there is a reasonable expectation that the
Participant will return to perform services for the Employer. If the period of leave
exceeds six months and the individual does not retain a right to reemployment under an
applicable statute or by contract, the employment relationship is deemed to terminate
on the first date immediately following such six-month period. Notwithstanding the
foregoing, where a leave of absence is due to any medically determinable physical or
mental impairment that can be expected to result in death or can be expected to last
for a continuous period of not less than six months, where such impairment causes the
Participant to be unable to perform the duties of his or her position of employment or
any substantially similar position of employment, a 29-month period of absence may be
substituted for such six-month period.
	 
	 	(b)	 	Termination of Employment. Whether a termination of employment has
occurred is determined based on whether the facts and circumstances indicate that the
Employer and Participant reasonably anticipated that no further services would be
performed after a certain date or that the level of bona fide services the Participant
would perform after such date (whether as an employee or as an independent contractor)
would permanently decrease to no more than 20 percent of the average level of bona fide
services performed (whether as an employee or an independent contractor) over the
immediately preceding 36-month period (or, the full period of services to the Employer
if the Participant has been providing services to the Employer less than 36 months).
Facts and circumstances to be considered in making this determination include, but are
not limited to, whether the Participant continues to be treated as an employee for
other purposes (such as continuation of salary and participation in employee benefit
programs), whether similarly situated service providers have been treated consistently,
and whether the Participant is permitted, and realistically available, to perform
services for other service recipients in the same line of business. The Participant is
presumed to have Separated from Service where the level of bona fide services performed
decreases to a level equal to 20 percent or less of the average level of services
performed by the employee during the immediately preceding 36-month period. The
Participant will be presumed not to have Separated from Service where the level of bona
fide services performed continues at a level that is 50 percent or more of the average
level of service performed by the Participant during the immediately preceding
36-month period. No presumption applies to a decrease in the level of bona fide
services performed to a level that is more than 20 percent and less than 50 percent
of the average level of bona fide services performed during the immediately




4









 






	 	 	 	preceding 36-month period. The presumption is rebuttable by demonstrating that the
Employer and the Participant reasonably anticipated that as of a certain date the
level of bona fide services would be reduced permanently to a level less than or
equal to 20 percent of the average level of bona fide services provided during the
immediately preceding 36-month period or the full period of services to the Employer
if the Participant has been providing services to the Employer less than 36 months
(or that the level of bona fide services would not be so reduced). For example, the
Participant may demonstrate that the Employer and the Participant reasonably
anticipated that the Participant would cease providing services, but that, after the
original cessation of services, business circumstances such as termination of the
Participant’s replacement caused the Participant to return to employment. Although
the Participant’s return to employment may cause the Participant to be presumed to
have continued in employment because the Participant is providing services at a rate
equal to the rate at which the Participant was providing services before the
termination of employment, the facts and circumstances in this case would
demonstrate that at the time the Participant originally ceased to provide services,
the Employer reasonably anticipated that the Participant would not provide services
in the future. For purposes of this paragraph (b), for periods during which the
Participant is on a paid bona fide leave of absence (as defined in paragraph (a) of
this Section 2.24) and has not otherwise terminated employment pursuant to paragraph
(a) of this Section 2.24, the Participant is treated as providing bona fide services
at a level equal to the level of services that the Participant would have been
required to perform to receive the compensation paid with respect to such leave of
absence. Periods during which the Participant is on an unpaid bona fide leave of
absence (as defined in paragraph (a) of this Section 2.24) and has not otherwise
terminated employment pursuant to paragraph (a) of this Section 2.24, are
disregarded for purposes of this paragraph (b) of this Section 2.24 (including for
purposes of determining the applicable 36-month (or shorter) period).






	 	(c)	 	Asset Purchase Transactions. Where as part of a sale or other
disposition of assets by the Employer as seller to an unrelated service recipient
(buyer), a Participant of the Employer would otherwise experience a Separation from
Service with the Employer, the Employer and the buyer may retain the discretion to
specify, and may specify, whether a Participant providing services to the Employer
immediately before the asset purchase transaction and providing services to the buyer
after and in connection with the asset purchase transaction has experienced a
Separation from Service, provided that the asset purchase transaction results from bona
fide, arm’s length negotiations, all service providers providing services to the
Employer immediately before the asset purchase transaction and providing services to
the buyer after and in connection with the asset purchase transaction are treated
consistently (regardless of position at the Employer) for purposes of applying the
provisions of any nonqualified deferred
compensation plan, and such treatment is specified in writing no later than the
closing date of the asset purchase transaction. For purposes of this paragraph (c),
references to a sale or other disposition of assets, or an asset purchase
transaction,




5









 






	 	 	 	refer only to a transfer of substantial assets, such as a plant or
division or substantially all the assets of a trade or business.






	 	(d)	 	Dual Status. If a Participant provides services both as an employee of
the Employer and as an independent contractor of the Employer, the Participant must
separate from service both as an employee and as an independent contractor to be
treated as having Separated from Service. If a Participant ceases providing services
as an independent contractor and begins providing services as an employee, or ceases
providing services as an employee and begins providing services as an independent
contractor, the Participant will not be considered to have a Separation from Service
until the Participant has ceased providing services in both capacities.
Notwithstanding the foregoing, if a Participant provides services both as an employee
of the Employer and a member of the board of directors of the Employer, the services
provided as a director are not taken into account in determining whether the
Participant has a Separation from Service as an employee for purposes of this Plan
unless this Plan is aggregated with any plan in which the Participant participates as a
director under IRS Regulation Section 1.409A-1(c)(2)(ii).






	2.25	 	Specified Employee shall have the meaning set forth in IRS Regulation Section 1.409A-1 the
requirements of which are summarized in part as follows:






	 	(a)	 	In General. “Specified Employee” means a Participant who as of the
date of his separation from service is a “key employee” as defined in Code Section
416(i) (disregarding Section 416(i)(5)), i.e., an employee who at any time during the
12 month period ending on an identification date is an officer of the Employer or one
of its affiliates having an annual compensation as defined in IRS Regulation Section
1.409A-1(i)(2) greater than $130,000, a 5% owner of the Employer or one of its
affiliates or a 1% owner of the Employer or one of its affiliates having compensation
of more than $150,000. The $130,000 amount described in the preceding sentence shall
be adjusted for cost of living increases in such amounts and at such times as specified
by the Internal Revenue Service. Further, no more than 50 employees (or, if lesser,
the greater of 3 or 10% of the employees) shall be treated as officers. The foregoing
definition shall be interpreted at all times in a manner consistent with such
regulations as may be adopted from time to time by the Internal Revenue Service for
purposes of applying the key employee definition of Section 416(i) to the requirements
of Code Section 409A. If a person is a key employee as of an identification date, the
person is treated as a Specified Employee for the 12-month period beginning on the
first day of the fourth month following the identification date. The “identification
date” is December 31.
	 
	 	(b)	 	In the event of a public offering, merger, acquisition, spin-off,
reorganization or other corporate transaction, “Specified Employees” shall be
determined as provided in IRS Reg. Section 1.409A-(1)(i)(6).




6









 












	2.26	 	Unforeseeable Emergency means a severe financial hardship to a Participant resulting from an
illness or accident of the Participant or the Participant’s spouse or dependent (as defined in
Section 152(a) of the Code), loss of the Participant’s property due to casualty (including the
need to rebuild a home following damage to a home not otherwise covered by insurance, for
example, as a result of a natural disaster), or other similar extraordinary and unforeseeable
circumstances arising as a result of events beyond the control of the Participant. For
example, the imminent foreclosure of or eviction from the Participant’s primary residence may
constitute an Unforeseeable Emergency. In addition, the need to pay for medical expenses,
including non-refundable deductibles, as well as for the costs of prescription drug
medication, may constitute an Unforeseeable Emergency. Finally, the need to pay for funeral
expenses of a spouse or a dependent (as defined in Code section 152(a)) may also constitute an
Unforeseeable Emergency. Except as otherwise provided above, the purchase of a home and the
payment of college tuition are not Unforeseeable Emergencies. Whether a Participant is faced
with an Unforeseeable Emergency is to be determined based on the relevant facts and
circumstances of each case.






7











 





ARTICLE III




PARTICIPATION





	3.1	 	Eligibility to Participate
	 
	 	 	An Employee shall be eligible to elect deferrals and receive Employer contributions in
accordance with the provisions of Article IV beginning on the date the Committee advises the
Employee he is eligible because the Committee in its discretion has determined that the
Employee may reasonably be anticipated to earn Compensation from the Employer in excess of
the limit described in Code Section 401(a)(17).
	 
	3.2	 	Continuation of Eligibility






	 	(a)	 	An Employee shall continue to be eligible to elect deferrals and receive
Employer contributions in accordance with the provisions of Article IV only for so long
as he continues in employment with the Employer.
	 
	 	(b)	 	An individual who has a Separation from Service shall cease to be eligible and
shall again be eligible to elect deferrals and receive Employer contributions in
accordance with the provisions of Article IV only in accordance with Section 3.1.





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ARTICLE IV




DEFERRALS





	4.1	 	Elective Deferrals






	 	(a)	 	An Eligible Employee may elect an Elective Deferral of up to four percent (4%)
of his Excess Compensation for services performed during a Plan Year by completing and
filing such forms as may be required by the Employer.
	 
	 	(b)	 	An Eligible Employee’s Elective Deferral election under paragraph (a) of this
Section shall apply to and reduce his Excess Compensation, i.e., the portion of his
Compensation earned during a Plan Year after the date the Compensation he has earned
during the Plan Year equals the limit in Code Section 401(a)(17) for such Plan Year.






	4.2	 	Additional Rules Governing Deferral Elections






	 	(a)	 	An Eligible Employee’s election under Section 4.1 shall (i) if made within the
thirty (30) day period following the date he is first eligible to participate in the
Plan, be effective for that portion of his Excess Compensation to be paid for services
performed subsequent to the election, and (ii) if not made within said thirty (30) day
period, be effective for Excess Compensation paid for services performed during the
Plan Year following the date the election is received by the Employer, or its designee.
	 
	 	(b)	 	An Eligible Employee’s election for a Plan Year under this Article IV shall be
irrevocable after the last day upon which such election is permitted to be made for
such Plan Year and shall continue in effect for subsequent Plan Years until changed or
revoked pursuant to paragraph (c) below.
	 
	 	(c)	 	An Eligible Employee may change or revoke his election which would otherwise be
effective for a Plan Year by completing and filing such forms as may be required by the
Employer by the last day of the preceding Plan Year.
	 
	 	(d)	 	Notwithstanding paragraphs (a), (b) and (c), in the event that a Participant
makes application for a hardship distribution under Section 7.3 and the Administrator
determines that an Unforeseeable Emergency exists, his deferral election otherwise in
effect under this Article IV and any other nonqualified deferred compensation plan of
the account balance type shall immediately terminate upon such determination. To
resume deferrals thereafter, a Participant must make an election satisfying the
provisions of paragraph (c).
	 
	 	(e)	 	Notwithstanding paragraphs (a), (b) and (c), if an Eligible Employee receives a
withdrawal of his elective contributions under the Qualified 401(k) Plan or any other
401(k) plan (i.e., a qualified cash or deferred arrangement) of the Employer (or any
affiliate treated under the Code as a single employer with the Employer





9









 





	 	 	 	for purposes of the 401(k) plan) due to financial hardship pursuant to IRS
Regulation Section 1.40(k)-1(d)(3) or its successor, his deferral election under
this Section 4.1 shall be revoked automatically (effective on the date such hardship
withdrawal is paid). In addition, such Eligible Employee shall not be eligible to
have another deferral election in effect until the first day of the Plan Year which
begins after a six month suspension period that begins on the first day of the
calendar month following the date the hardship withdrawal is paid. Such Eligible
Employee may then resume deferrals by making an election, pursuant to the rules of
paragraph (c) above, effective for any Plan Year which begins after the end of such
suspension period.






	4.3	 	Matching Contribution
	 
	 	 	An Eligible Employee shall be credited with a Matching Contribution for a Plan Year in an
amount equal to the amount of the Elective Deferral made on the Eligible Employee’s behalf
for the Plan Year.
	 
	4.4	 	Employer Contribution
	 
	 	 	An Eligible Employee shall be credited with an Employer Contribution for a Plan Year in an
amount equal to 4% of the Eligible Employee’s Excess Compensation for the Plan Year;
provided the Eligible Employee remains in the Employer’s employ on the last day of such Plan
Year.
	 
	4.5	 	Additional Matching Contribution
	 
	 	 	There shall be credited to the Participant’s Matching Contribution Account for a Plan Year
an amount in addition to amounts credited under Section 4.3 for the same year. The amount
credited under this Section 4.5 shall be equal to .04(X-(Y-Z)) where X is the limit in Code
Section 401(a)(17) for such Plan Year, Y is the Participant’s Compensation for the Plan Year
as defined in Section 2.9 and Z is the amount of elective deferrals for the Plan Year under
all nonqualified deferred compensation plans and agreements (including this Plan) of the
Employer covering the Participant. No amount shall be credited under this Section if X does
not exceed the remainder of Y minus Z.
	 
	4.6	 	Additional Employer Contribution
	 
	 	 	As of the last day of a Plan Year, there shall be credited to the Participant’s Employer
Contribution Account an amount in addition to amounts credited under Section 4.4 for the
same year. The amount credited under this Section 4.6 shall be equal to .04(X-(Y-Z)) where
X is the limit in Code Section 401(a)(17) for such Plan Year, Y is the Participant’s
Compensation for the Plan Year as defined in Section 2.9 and Z is the amount of elective
deferrals for the Plan Year under all nonqualified deferred compensation plans and
agreements (other than this Plan) of the Employer covering the Participant. No amount shall
be credited under this Section if X does not exceed the remainder of Y minus Z.





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ARTICLE V




ACCOUNTS AND CREDITS





	5.1	 	Credits to Accounts






	 	(a)	 	An amount equal to the amount by which a Participant’s Compensation has been
reduced pursuant to his deferral election under Section 4.1 shall be credited to his
Elective Deferral Account.
	 
	 	(b)	 	Matching Contributions and Additional Matching Contributions on a Participant’s
behalf shall be credited to his Matching Contribution Account.
	 
	 	(c)	 	Employer Contributions and Additional Employer Contributions on a Participant’s
behalf shall be credited to his Employer Contribution Account.
	 
	 	(d)	 	Said credits shall be made at times established by the Committee but no later
than 60 days after the last day of the Plan Year to which they relate.
	 
	 	(e)	 	Each Account shall also be credited or charged with deemed earnings and losses
as if it were invested in accordance with Section 5.3.






	5.2	 	No Funding






	 	(a)	 	The right of any individual to receive payment under the provisions of this
Plan shall be an unsecured claim against the general assets of the Employer, and no
provisions contained in this Plan, nor any action taken pursuant to this Plan, shall be
construed to give any individual at any time a security interest in any asset of the
Employer, of any affiliated company, or of the stockholders of the Employer. The
liabilities of the Employer to any individual pursuant to this Plan shall be those of a
debtor pursuant to such contractual obligations as are created by this Plan and, to the
extent any person acquires a right to receive payment from the Employer under this
Plan, such right shall be no greater than the right of any unsecured general creditor
of the Employer.
	 
	 	(b)	 	The Employer may establish a grantor trust (but shall not be required to do so)
to which shall be contributed (subject to the claims of the general creditors of the
Employer) the amounts credited to the Accounts. If a grantor trust is so established,
except as specifically provided otherwise by the terms of the trust agreement for the
trust, payment by the trust of the amounts due to a Participant or his Beneficiary
under the Plan shall be considered a payment by the Employer for purposes of the Plan.






	5.3	 	Deemed Investment of Accounts






	 	(a)	 	The Committee shall select one or more investment funds for the deemed
investment of Accounts. However, in no event shall the Employer be required to




11









 






	 	 	 	make any such investment in the investment funds, and to the extent such investments
are made, such investments shall remain an asset of the Employer subject to the
claims of its general creditors.






	 	(b)	 	On the date credited to the respective Account, a Participant’s Elective
Deferrals, Matching Contributions, Additional Matching Contributions, Employer
Contributions and Additional Employer Contributions shall be deemed to be invested in
one or more of the investment funds designated by the Participant for such deemed
investment. Once made, the Participant’s investment designation shall continue in
effect for all future Elective Deferrals, Matching Contributions, Additional Matching
Contributions, Employer Contributions and Additional Employer Contributions until
changed by the Participant. Any such change may be elected by the Participant at the
times established by the Committee, which shall be no less frequently than quarterly,
and shall be effective only for Elective Deferrals, Matching Contributions, Additional
Matching Contributions, Employer Contributions and Additional Employer Contributions
credited from and after its effective date.
	 
	 	(c)	 	A Participant may elect to reallocate the balance of his Accounts deemed to be
invested in the investment funds under this Section at the times established by the
Committee, which shall be no less frequently quarterly.
	 
	 	(d)	 	All elections and designations under this Section shall be made in accordance
with procedures prescribed by the Committee. The Committee may prescribe uniform
percentages for such elections and designations.
	 
	 	(e)	 	Any distribution of a Participant’s Account which is not a distribution of the
entire account shall be taken pro rata from each of the investment funds in which the
account is deemed to be invested.






	5.4	 	Reports to Participants
	 
	 	 	The Employer shall provide annual reports to each Participant showing (a) the value of the
Account as of the most recent December 31st (b) the amount of contributions made by the
Employer for the year ending on such date and (c) the amount of any investment earnings or
loss credited or debited to the Participant’s Account.





12









 










ARTICLE VI




VESTING




          A Participant shall be fully vested and nonforfeitable at all times in all of his Accounts
herein.



13









 







ARTICLE VII




MANNER AND TIMING OF DISTRIBUTION





	7.1	 	Payment of Benefits






	 	(a)	 	After a Participant’s Separation from Service the Participant’s Account shall
be paid to the Participant (or in the event of the Participant’s death, to the
Participant’s Beneficiary). Payment shall be made in one of the following forms as
specified in the Participant’s payment election pursuant to Section 7.2:






	 	(i)	 	Single Sum. A single sum distribution of the value of
the balance of the Account on the first day of the second month following the
Participant’s Separation from Service; or
	 
	 	(ii)	 	Installments. This subparagraph (ii) shall only be
applicable after April 30, 2006. The value of the balance of the Account shall
be paid in annual installments with the first of such installment to be paid on
the first day of the second month following the Participant’s Separation from
Service and with subsequent annual installments to be paid on an anniversary of
the payment of the first installment. Annual installments shall be paid in one
of the alternative methods specified below over the number of years selected by
the Participant in the payment election made pursuant to Section 7.2, but not
to exceed 10. The earnings (or losses) provided for in Section 5.1(e) shall
continue to accrue on the balance remaining in the Account during the period of
installment payments. The alternative methods available are as follows:






          (A) Fractional Method. The annual installment shall be
calculated by multiplying the most recent value of the Account by a
fraction, the numerator of which is one, and the denominator of which is the
remaining number of annual payments due the Participant. By way of example,
if the Participant elects a 10 year annual installment method, the first
payment shall be one-tenth (1/10) of the Account balance. The following
year, the payment shall be one-ninth (1/9) of the Account balance.




          (B) Percentage or Fixed Dollar Method. The annual installment
shall be calculated by multiplying the most recent value of the Account, in
the case of the percentage method, by the percentage selected by the
Participant and paying out the resulting amount or, in the case of the fixed
dollar method, by paying out the fixed dollar amount selected by the
Participant for the number of years selected by the Participant. However,
in the event the dollar amount selected is more than the value of the
Account in any given year, the entire value of the Account will be
distributed. Further, regardless of the method selected by the Executive,



14









 







the final installment payment will include 100% of the then remaining
Account value.




	 	(b)	 	In the case of a Participant who is a Specified Employee, payment pursuant to
paragraph (a) above shall commence no earlier than the first day of the seventh month
following the Participant’s Separation from Service. This delay in distribution rule
does not apply if the payment is being made as a result of the Participant’s death or
disability. For this purpose, “disability” means that the Participant:






	 	(i)	 	is unable to engage in any substantial gainful activity by
reason of any medically determinable or physical or mental impairment which can
be expected to result in death or can be expected to last for a continuous
period of not less than 12 months, or
	 
	 	(ii)	 	is, by reason of any medically determinable physical or mental
impairment which can be expected to result in death or can be expected to last
for a continued period of not less than 12 months, receiving income replacement
benefits for a period of not less than three months under an accident and
health plan covering the employees of the Employer or one of its affiliates in
which the Participant is covered.






	7.2	 	Payment Election
	 
	 	 	An individual who first becomes a Participant at the beginning of a Plan Year shall, prior
to his date of participation, complete a payment election form specifying the form of
payment applicable to such Participant’s Account under the Plan. Absent an actual election
by such Participant by the effective date of participation, the Participant shall be deemed
to have elected the five (5) annual installment payment form. An individual who first
becomes a Participant other than on the first day of a Plan Year shall, no later than 30
days after the effective date of participation, complete a payment election form specifying
the form of payment applicable to such Participant’s Account. In the event such a
Participant does not make an actual election within such 30 day period, the Participant
shall be deemed to have elected the five (5) annual installment payment form; provided,
however, that if such Participant is already a participant in any other nonqualified plan or
plans sponsored by the Employer of the account balance type, the most recent payment
election prior to the date he became a Participant in this Plan with respect to any one of
those plans shall be the payment election form deemed elected under this Plan regardless of
whether the individual elects a different payment election form during that initial 30 day
period. Elections shall be made on a “payment election form” – the form established from
time to time by the Committee which a Participant completes, signs and returns to the
Committee to make an election under the Plan. To the extent authorized by the Committee,
such form may be provided electronically and, in such case, need not be signed by the
Participant. A Participant may change the form of payment by completing and filing a new
payment election form with the Committee, and the payment election form on file with the
Committee as of the date of the Participant’s




15









 






	 	 	Separation from Service shall be controlling. Notwithstanding the foregoing, a payment
election form changing the Participant’s form of payment shall not be effective if the
Participant has a Separation from Service within twelve months after the date on which the
election change is filed with the Committee. Any change in payment method must have the
effect of delaying the commencement of payments to a date which is at least five (5) years
following the initially scheduled commencement date of payment previously in effect. For
purposes of compliance with Code Section 409A, a series of installment payments is
designated as a single payment rather than a right to a series of separate payments;
therefore, a Participant who has elected (or is deemed to have elected) any option available
under Section 7.1(a)(i) or (ii) may substitute any of the other options for the option
originally selected as long as the foregoing one-year and five year rules are satisfied. A
switch from the percentage method to the fixed dollar method or vice versa and a switch from
either of those methods to the fractional method or vice versa is considered a substitution
of a new option for the original option for purposes of this rule even if the number of
yearly installments is not changed. The five year delay rule does not apply if the revised
payment method applies only upon the Participant’s death or disability. For this purpose,
disability has the same meaning as in Section 7.1(b). In the event that the Participant’s
new payment election would not be effective under the foregoing rules, the payment election
previously in effect shall be controlling.






	7.3	 	Financial Hardship
	 
	 	 	A partial or total distribution of the Participant’s Account shall be made prior to
Separation from Service upon the Participant’s request and a demonstration by the
Participant of severe financial hardship as a result of an Unforeseeable Emergency. Such
distribution shall be made in a single sum as soon as administratively practicable following
the Committee’s determination that the foregoing requirements have been met. In any case, a
distribution due to Unforeseeable Emergency may not be made to the extent that such
emergency is or may be relieved through reimbursement or compensation from insurance or
otherwise, by liquidation of the Participant’s assets, to the extent the liquidation of such
assets would not cause severe financial hardship, or by cessation of deferrals under Article
IV and any other nonqualified deferred compensation plan of the account balance type
sponsored by the Employer. Distributions because of an Unforeseeable Emergency must be
limited to the amount reasonably necessary to satisfy the emergency need (which may include
amounts necessary to pay any Federal, state, or local income taxes or penalties reasonably
anticipated to result from the distribution). Determinations of amounts reasonably
necessary to satisfy the emergency need must take into account any additional compensation
that is available because of cancellation of a deferral election under Article IV and any
other nonqualified deferred compensation plan of the account balance type sponsored by the
Employer upon a payment due to an Unforeseeable Emergency. The payment may be made from any
arrangement in which the Participant participates that provides for payment upon an
Unforeseeable Emergency, provided that the arrangement under which the payment was made must
be designated at the time of payment.
	 
	7.4	 	Delayed Distribution










16









 












	 	(a)	 	A payment otherwise required to be made pursuant to the provisions of this
Article VII shall be delayed if the Employer reasonably anticipates that the Employer’s
deduction with respect to such payment would be limited or eliminated by application of
Code Section 162(m); provided, however that such payment shall be made on the earliest
date on which the Employer anticipates that the deduction of the payment of the amount
will not be limited or eliminated by application of Code Section 162(m). In any event,
such payment shall be made no later than the last day of the calendar year in which the
Participant has a Separation from Service or, in the case of a Specified Employee, the
last day of the calendar year in which occurs the six (6) month anniversary of such
Separation from Service.
	 
	 	(b)	 	A payment otherwise required under this Article VII shall be delayed if the
Employer reasonably determines that the making of the payment will jeopardize the
ability of the Employer to continue as a going concern; provided, however, that
payments shall be made on the earliest date on which the Employer reasonably determines
that the making of the payment will not jeopardize the ability of the Employer to
continue as a going concern.
	 
	 	(c)	 	A payment otherwise required under this Article VII shall be delayed if the
Employer reasonably anticipates that the making of the payment will violate federal
securities laws or other applicable law; provided, however, that payments shall
nevertheless be made on the earliest date on which the Employer reasonably anticipates
that the making of the payment will not cause such violation. (The making of a payment
that would cause inclusion in gross income or the applicability of any penalty
provision or other provision of the Code is not treated as a violation of applicable
law.)
	 
	 	(d)	 	A payment otherwise required under this Article VII shall be delayed upon such
other events and conditions as the Internal Revenue Service may prescribe in generally
applicable guidance published in the Internal Revenue Bulletin.






	7.5	 	Inclusion in Income Under Section 409A
	 
	 	 	Notwithstanding any other provision of this Article VII, in the event this Plan fails to
satisfy the requirements of Code Section 409A and regulations thereunder with respect to any
Participant, there shall be distributed to such Participant as promptly as possible after
the Administrator becomes aware of such fact of noncompliance such portion of the
Participant’s Account balance hereunder as is included in income as a result of the failure
to comply, but no more.
	 
	7.6	 	Domestic Relations Order
	 
	 	 	Notwithstanding any other provision of this Article VII, payments shall be made from the
Account of a Participant in this Plan to such individual or individuals (other than the




17









 






	 	 	Participant) and at such times as are necessary to comply with a domestic relations order
(as defined in Code Section 414(p)(1)(B)).






	7.7	 	De Minimis Amounts
	 
	 	 	Notwithstanding any other provision of this Article VII hereof, a Participant’s Account
balance under this Plan and all other nonqualified deferred compensation plans of the
account balance type shall automatically be distributed to the Participant on or before the
later of December 31 of the calendar year in which occurs the Participant’s Separation from
Service or the 15th day of the third month following the Participant’s Separation
from Service if the total amount in such Account balance at the time of distribution, when
aggregated with all other amounts payable to the Participant under all arrangements
benefiting the Participant described in IRS Regulations Section 1.409A-1(c) (or any
successor thereto), do not exceed the amount described in Code Section 402(g)(1)(B). The
foregoing lump sum payment shall be made automatically and any other distribution elections
otherwise applicable with respect to the individual in the absence of this provision shall
not apply.





18









 










ARTICLE VIII




PLAN OPERATION AND ADMINISTRATION





	8.1	 	Administrator
	 
	 	 	The Committee shall be the plan administrator and shall be responsible for and perform the
duties imposed on a plan administrator.
	 
	8.2	 	Committee
	 
	 	 	The Committee shall have the power and duty to administer the Plan in accordance with its
terms, including, but not limited to, the following:






	 	(a)	 	to make and enforce such rules and regulations as it may deem necessary or
desirable for the efficient administration of the Plan;
	 
	 	(b)	 	to interpret the Plan, including the right to remedy possible ambiguities,
inconsistencies or omissions;
	 
	 	(c)	 	to decide all questions related to participation in, and payment of amounts
under, the Plan, including all factual questions related thereto; and
	 
	 	(d)	 	to maintain all necessary records for the administration of the Plan.






	8.3	 	Authority to Act
	 
	 	 	Brady Corporation or the Committee may authorize one or more of Brady Corporation’s
employees, members, representatives or agents, as applicable, to execute on its behalf
instructions or directions to any interested party, and any such interested party may rely
thereupon and the information contained therein.
	 
	8.4	 	Information from Participants
	 
	 	 	Each Participant and Beneficiary shall furnish the Committee in the form prescribed by it
and at its request, such personal data, affidavits, authorizations to obtain information, or
other information as the Committee deems necessary or desirable for the administration of
the Plan.
	 
	8.5	 	Committee Discretion
	 
	 	 	The Committee has full and complete discretionary authority to determine eligibility for
benefits, to construe the terms of the Plan and to decide any matter presented through the
claims review procedure. Any final determination by the Committee (including claims
decisions made pursuant to Article IX) shall be binding on all parties and afforded the
maximum deference allowed by law. If challenged in court, such determination shall not be
subject to de novo review and shall not be overturned unless proven to be
arbitrary and




19









 






	 	 	capricious upon the evidence considered by the Committee at the time of such determination.






	8.6	 	Committee Members’ Conflict of Interest
	 
	 	 	A member of the Committee who is covered hereunder may not vote or decide upon any matter
relating solely to himself or vote in any case in which his individual right to any benefit
under the Plan is particularly involved. Decisions shall be made by remaining Committee or
Board members even if there is no quorum under normal Committee or Board rules.
	 
	8.7	 	Governing Law
	 
	 	 	This Plan shall be construed in accordance with the laws of the State of Wisconsin to the
extent not preempted by the provisions of the Employee Retirement Income Security Act of
1974, as amended, or other federal law.
	 
	8.8	 	Expenses
	 
	 	 	All expenses and costs incurred in connection with the administration and operation of the
Plan shall be borne by the Employer and/or the Trust.
	 
	8.9	 	Minor or Incompetent Payees
	 
	 	 	If a person to whom a benefit is payable is a minor or is otherwise incompetent by reason of
a physical or mental disability, the Committee may cause the payments due to such person to
be made to another person for the first person’s benefit without any responsibility to see
to the application of such payment. Such payments shall operate as a complete discharge of
the obligations to such person under the Plan.
	 
	8.10	 	Withholding
	 
	 	 	The Employer shall comply with all applicable tax and governmental withholding requirements.
To the extent required by law, the Employer shall withhold any taxes required to be
withheld by the federal or any state or local government from payments made hereunder or
from any other amounts paid to a Participant by the Employer. If FICA taxes must be
withheld in connection with amounts credited hereunder before payments are otherwise due
hereunder and if there are no other wages from which to withhold them, the Employer shall
pay such FICA taxes generated by such payment (and taxes under Code Section 3401 triggered
thereby and additional taxes under Section 3401 attributable to pyramiding of Section 3401
wages and taxes) but no more and the Participant’s Account hereunder shall be reduced by an
amount equal to the payments made by the Employer.





20









 






	8.11	 	Indemnification
	 
	 	 	Except as otherwise provided by law, neither the Board nor the Committee nor any individual
member of the Board or the Committee, nor the Employer, nor any officer, shareholder or
employee of the Employer shall be liable for any error of judgment, action or failure to act
hereunder or for any good faith exercise of discretion, excepting only liability for gross
negligence or willful misconduct. Such individuals and entities shall be indemnified and
held harmless by the Employer against any and all claims, damages, liabilities, costs and
expenses (including attorneys’ fees) arising by reason of any good faith error of omission
or commission with respect to any responsibility, duty or action hereunder. Nothing herein
contained shall preclude the Employer from purchasing insurance to cover potential liability
of one or more persons who serve in an administrative capacity with respect to the Plan.





21









 










ARTICLE IX




CLAIMS PROCEDURE





	9.1	 	Claims
	 
	 	 	If the Participant or the Participant’s Beneficiary (hereinafter referred to as a
“Claimant”) is denied all or a portion of an expected benefit under the Plan for any reason,
he or she may file a claim with the Committee or its designee. The Committee or its
designee shall notify the Claimant within 60 days of allowance or denial of the claim,
unless the Claimant receives written notice prior to the end of the sixty (60) day period
stating that special circumstances require an extension of the time for decision and
specifying the expected date of decision. The notice of the such decision shall be in
writing, sent by mail to the Claimant’s last known address, and if a denial of the claim,
must contain the following information:






	 	(a)	 	the specific reasons for the denial;
	 
	 	(b)	 	specific reference to pertinent provisions of the Plan on which the denial is
based;
	 
	 	(c)	 	if applicable, a description of any additional information or material
necessary to perfect the claim, an explanation of why such information or material is
necessary, and an explanation of the claims review procedure; and
	 
	 	(d)	 	a description of the Plan’s claims review procedure, including a statement of
the Claimant’s right to bring a civil action under Section 502 of ERISA if the
Claimant’s claim is denied upon review.






	9.2	 	Review
	 
	 	 	A Claimant is entitled to request a review of any denial of his claim. The request for
review must be submitted in writing to the Committee within 60 days after receipt of the
notice of the denial. The timely filing of such a request is necessary to preserve any
legal recourse which may be available to the Claimant and, absent the submission of request
for review within the 60-day period, the claim will be deemed to be conclusively denied.
Upon submission of a written request for review, the Claimant or his representative shall be
entitled to review all pertinent documents, and to submit issues and comments in writing for
consideration by the Committee. The Committee shall fully and fairly review the matter and
shall consider all information submitted in the review request, without regard to whether or
not such information was submitted or considered in the initial claim determination. The
Committee shall promptly respond to the Claimant, in writing, of its decision within 60 days
after receipt of the review request. However, due to special circumstances, if no response
has been provided within the first 60 days, and notice of the need for additional time has
been furnished within such period, the review and response may be made within the following
60 days. The Committee’s decision shall include specific reasons for the decision,
including references to the particular Plan provisions upon which the decision is based,
notification that the Claimant can receive or review




22









 






	 	 	copies of all documents, records and information relevant to the claim, and information as
to the Claimant’s right to file suit under Section 502(a) of ERISA.






	9.3	 	Disability
	 
	 	 	If a determination of disability for purposes of Section 7.1(b) or 7.2 becomes necessary and
if such determination is considered to be with respect to a claim for benefits based on
disability for purposes of 29 CFR Section 2560.503-1, then the Committee shall adopt and
administer a special procedure for considering such disability claims meeting the
requirements of 29 CFR Section 2560.503-1 for disability benefit claims.





23









 










ARTICLE X




AMENDMENT AND TERMINATION




          Brady Corporation (through its Board of Directors or authorized officers or employees and/or
the Committee) reserves the right to alter or amend the Plan, or any part thereof, in such manner
as it may determine, at any time and for any reason. Further, the Board of Directors of Brady
Corporation reserves the right to terminate the Plan, at any time and for any reason.
Notwithstanding the foregoing, in no event shall any amendment or termination deprive any
Participant or Beneficiary of any amounts credited to him under this Plan as of the date of such
amendment or termination; provided, however, that Brady Corporation may prospectively change the
manner in which earnings are credited or discontinue the crediting of earnings and, further, Brady
Corporation may make any amendment it deems necessary or desirable for purposes of compliance with
the requirements of Code Section 409A and regulations thereunder.




          If the Plan is amended to freeze benefit accruals, no additional deferrals or contributions
shall be credited to any Participant Account hereunder. Following such a freeze of benefit
accruals, Participants’ Accounts shall be paid at such time and in such form as provided under
Article VII of the Plan. If the Employer terminates the Plan and if the termination is of the type
described in regulations issued by the Internal Revenue Service pursuant to Code Section 409A, then
the Employer shall distribute the then existing Account balances of Participants and beneficiaries
in a lump sum within the time period specified in such regulations and, following such
distribution, there shall be no further obligation to any Participant or beneficiary under this
Plan. However, if the termination is not of the type described in such regulations, then following
Plan termination Participants’ Accounts shall be paid at such time and in such form as provided
under Article VII of the plan.



24









 







ARTICLE XI




MISCELLANEOUS PROVISIONS





	11.1	 	Headings
	 
	 	 	The headings of the Plan have been inserted for convenience of reference and shall be
ignored in the construction of the provisions herein.
	 
	11.2	 	No Contract of Employment
	 
	 	 	The existence of the Plan shall not create or change any contract, express or implied,
between the Employer and its employees and shall not affect the Employer’s right to take any
action with respect to its employees.
	 
	11.3	 	Rights of Participants and Beneficiaries
	 
	 	 	The interest and rights of a Participant and Beneficiary under the Plan shall be those of a
general unsecured creditor of the Employer, and with respect to the creditors of the
Employer, no Participant or Beneficiary shall have any preferred claims on, or any
beneficial ownership in, the assets of the Employer, including any assets in which the
Employer may invest to aid in meeting its obligations under the Plan.
	 
	11.4	 	Nonalienation of Benefits
	 
	 	 	All benefits payable hereunder are for the sole use and benefit of the Participants and
their Beneficiaries and, to the extent permitted by law, shall be free, clear and discharged
of and from, and are not to be in any way liable for, debts, contracts or agreements, now
contracted or which may hereafter be contracted and from all claims and liabilities now or
hereafter incurred by any Participant or Beneficiary covered by this Plan. No Participant
or Beneficiary covered by this Plan shall have the right to anticipate, surrender, encumber,
alienate or assign, whether voluntarily or involuntarily, any of the benefits to become due
hereunder unto any person or person upon any terms whatsoever, and any attempt to do so
shall be void.
	 
	11.5	 	Tax Treatment
	 
	 	 	There is no commitment or guarantee with respect to the tax treatment to be accorded to a
Participant or Beneficiary under the Plan.
	 
	11.6	 	Other Plans and Agreements






	 	(a)	 	Participation in the Plan shall not affect a Participant’s rights to
participate in and receive benefits under any other plans of the Employer, nor shall it
affect his rights under any other agreement entered into with the Employer, unless
explicitly provided otherwise by such agreement.




25









 












	 	(b)	 	Any amount credited under or paid pursuant to the Plan shall not be treated as
wages, salary or any other type of compensation or otherwise taken into account in the
determination of the Participant’s benefits under any other plans of the Employer,
unless explicitly provided otherwise by such plan.






	11.7	 	Number and Gender
	 
	 	 	The use of the singular shall be interpreted to include the plural and the plural the
singular, as the context shall require. The use of the masculine, feminine or neuter shall
be interpreted to include the masculine, feminine or neuter, as the context shall require.
	 
	11.8	 	Plan Provisions Controlling
	 
	 	 	In the event of any conflict between the provisions of the Plan and the provisions of a
summary or description of the Plan or the terms of any agreement or instrument related to
the Plan, the provisions of the Plan shall be controlling.
	 
	11.9	 	Severability
	 
	 	 	If any provisions of the Plan shall be held illegal or invalid for any reason, such
illegality or invalidity shall not affect the remaining parts of the Plan, but this Plan
shall be construed and enforced as if the illegal and invalid provisions had never been
included herein.
	 
	11.10	 	Evidence Conclusive
	 
	 	 	The Employer, the Committee and any person or persons involved in the administration of the
Plan shall be entitled to rely upon any certification, statement, or representation made or
evidence furnished by any person with respect to any facts required to be determined under
any of the provisions of the Plan, and shall not be liable on account of the payment of any
monies or the doing of any act or failure to act in reliance thereon. Any such
certification, statement, representation, or evidence, upon being duly made or furnished,
shall be conclusively binding upon the person furnishing it but not upon the Employer, the
Committee or any other person involved in the administration of the Plan. Nothing herein
contained shall be construed to prevent any of such parties from contesting any such
certification, statement, representation, or evidence or to relieve any person from the duty
of submitting satisfactory proof of any fact.
	 
	11.11	 	Status of Plan Under ERISA
	 
	 	 	The Plan is intended to be an unfunded plan maintained by an Employer primarily for the
purpose of providing deferred compensation for a select group of management or highly
compensated employees, as described in Section 201(2), Section 301(a)(3), Section 401(a)(1)
and Section 4021(b)(6) of the Employee Retirement Income Security Act of 1974, as amended.





26









 






	11.12	 	Name and Address Changes
	 
	 	 	Each Participant shall keep his name and address on file with the Employer and shall
promptly notify the Employer of any changes in his name or address. All notices required or
contemplated by this Plan shall be deemed to have been given to a Participant if mailed with
adequate postage prepaid thereon addressed to him at his last address on file with the
Employer. If any check in payment of a benefit hereunder (which was mailed to the last
address of the payee as shown on the Employer’s records) is returned unclaimed, further
payments shall be discontinued unless evidence is furnished that the recipient is still
alive.
	 
	11.13	 	Assignability by Corporation
	 
	 	 	The Employer shall have the right to assign all of its right, title and obligation in and
under this Plan upon a merger or consolidation in which the Employer is not the surviving
entity or to the purchaser of substantially its entire business or assets or the business or
assets pertaining to a major product line, provided such assignee or purchaser assumes and
agrees to perform after the effective date of such assignment all of the terms, conditions
and provisions imposed by this Plan upon the Employer. Upon such assignment, all of the
rights, as well as all obligations, of the Employer under this Plan shall thereupon cease
and terminate.
	 
	11.14	 	Special rule for 2005-2007.
	 
	 	 	Notwithstanding the usual rules regarding distribution elections contained in Article VII, a
Participant, on or before December 31, 2007, may make an election as to distribution of his
Account from among the choices described in Section 7.1 hereof without complying with the
rules described in Section 7.2 hereof as long as the effect of the election is not to
accelerate payments into 2006 or to defer payments which would otherwise have been made in
2006 or to accelerate payments into 2007 or to defer payments which would otherwise have
been made in 2007. Such election shall become effective after the last day upon which it is
permitted to be made. In order to change any such election after it has become effective,
the requirements of Section 7.2 hereof must be satisfied.





          IN WITNESS WHEREOF, the Employer has caused its duly authorized officer to execute this Plan
document on its behalf this 19th day of February, 2008.




BRADY CORPORATION




By: /s/ FRANK M. JAEHNERT




Attested: /s/ HOYT R. STASTNEY





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