Document:

exv10w38

Exhibit 10.38

Thermadyne Technologies Holdings, Inc.

2010 EQUITY INCENTIVE PLAN

Article 1. Establishment & Purpose

     1.1 Establishment. Thermadyne Technologies Holdings, Inc. (formerly known as Razor Holdco,
Inc.), a Delaware corporation (the “Company”), hereby establishes the Thermadyne
Technologies Holdings, Inc. 2010 Equity Incentive Plan (this “Plan”) as set forth herein.

     1.2 Purpose of this Plan. The purpose of this Plan is to attract, retain and motivate the
officers, directors and employees of the Company and its Subsidiaries and Affiliates, and to
promote the success of the Company’s business by providing them with appropriate incentives and
rewards through a proprietary interest in the long-term success of the Company.

Article 2. Definitions

          Capitalized terms used and not otherwise defined herein shall have the meanings set forth
below.

     2.1 “Affiliate” means any entity that the Company, either directly or indirectly, is
in common control with, is controlled by or controls or any entity in which the Company has a
substantial direct or indirect equity interest, as determined by the Board.

     2.2 “Award” means any Option that is granted under this Plan.

     2.3 “Award Agreement” means either (a) a written agreement entered into by the Company
and a Participant setting forth the terms and provisions applicable to an Award granted under this
Plan, or (b) a written statement signed by an authorized officer of the Company to a Participant
describing the terms and provisions of the actual grant of such Award.

     2.4 “Board” means the Board of Directors of the Company.

     2.5 “Code” means the U.S. Internal Revenue Code of 1986, as amended from time to time.

     2.6 “Committee” means the Board, or any committee designated by the Board to
administer this Plan in accordance with Article 3 of this Plan.

     2.7 “Director” means a member of the Board who is not an Employee.

     2.8 “Employee” means an officer or other employee of the Company or any Subsidiary or
Affiliate, including a member of the Board who is such an employee.

     2.9 “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time.

     2.10 “Fair Market Value” has the meaning set forth in the Stockholders Agreement

 

 

     2.11 “Incentive Stock Option” means an Option intended to meet the requirements of an
incentive stock option as defined in Section 422 of the Code and designated as an Incentive Stock
Option in accordance with Article 6 of this Plan.

     2.12 “Nonqualified Stock Option” means an Option that is not an Incentive Stock Option.

     2.13 “Option” means any Option granted from time to time under Article 6 of
this Plan and shall be Tranche A Options, Tranche B Options, Tranche C Options or such other grant
of nonqualified stock options designated by the Committee.

     2.14 “Option Price” means the purchase price per Share subject to an Option.

     2.15 “Participant” means any eligible person as set forth in Section 4.1 to
whom an Award is granted.

     2.16 “Person” means any natural person, sole proprietorship, general partnership,
limited partnership, limited liability company, joint venture, trust, unincorporated organization,
association, corporation, governmental authority, or any other organization, irrespective of
whether it is a legal entity and includes any successor (by merger or otherwise) of such entity.

     2.17 “Realization Event” has the meaning set forth in the Stockholders Agreement.

     2.18 “Service” means service as an Employee or Director. Service shall be deemed to
continue while a Participant is on a bona fide leave of absence, if such leave was approved by the
Company in writing or if continued crediting of Service for such purpose is required by applicable
law (as determined by the Company).

     2.19 “Share” means a share of common stock of the Company, par value $.01 per share,
or such other class or kind of shares or other securities resulting from the application of
Section 11.1 of this Plan.

     2.20 “Stockholders Agreement” means that certain Stockholders Agreement, dated as of
December 3, 2010, among the Company and the other parties thereto including as such agreement may
be amended, restated or otherwise modified.

     2.21 “Subsidiary” means any corporation, partnership, limited liability company or
other legal entity of which the Company, directly or indirectly, owns stock possessing fifty
percent (50%) or more of the total combined voting power of all classes of stock or other equity
interests.

     2.22 “Ten Percent Shareholder” means a person who on any given date owns, either
directly or indirectly (taking into account the attribution rules contained in Section 424(d) of
the Code), stock possessing more than 10% of the total combined voting power of all classes of
stock of the Company or a Subsidiary or Affiliate.

     2.23 “Tranche A Options” mean Options at an Option Price of $10.00 per Share.

     2.24 “Tranche B Options” mean Options at an Option Price of $30.00 per Share.

     2.25 “Tranche C Options” mean Options at an Option Price of $50.00 per Share

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Article 3. Administration

     3.1 Authority of the Committee. This Plan shall be administered by the Committee, which shall
have full power to interpret and administer this Plan and full authority to select the Directors
and Employees to whom Awards will be granted and determine the type and amount of Awards to be
granted to each such Director or Employee, the terms and conditions of Awards granted under this
Plan and the terms of Award Agreements to be entered into with Participants. Without limiting the
generality of the foregoing, the Committee may, in its sole discretion, interpret, clarify,
construe or resolve any ambiguity in any provision of this Plan or any Award Agreement, accelerate
or waive vesting of Awards and exercisability of Awards, extend the term or period of
exercisability of any Awards, modify the purchase price under any Award, or waive any terms or
conditions applicable to any Award, subject to the limitations set forth in Section 12.2 of
this Plan. Awards may, in the discretion of the Committee, be made under this Plan in assumption
of, or in substitution for, outstanding awards previously granted by the Company or an Affiliate or
a company acquired by the Company or with which the Company combines. The Committee shall have full
and exclusive discretionary power to adopt rules, forms, instruments and guidelines for
administering this Plan as the Committee deems necessary or proper. All actions taken and all
interpretations and determinations made by the Committee or by the Board (or any other committee or
sub-committee thereof), as applicable, shall be final and binding upon the Participants, the
Company and all other interested individuals.

     3.2 Delegation. The Committee may delegate to one or more of its members, one or more officers
of the Company or any Subsidiary, and one or more agents or advisors such administrative duties or
powers as it may deem advisable.

Article 4. Eligibility and Participation

     4.1 Eligibility. Participants will consist of such Employees and Directors as the Committee in
its sole discretion determines and whom the Committee may designate from time to time to receive
Awards under this Plan. Designation of a Participant in any year shall not require the Committee to
designate such person to receive an Award in any other year or, once designated, to receive the
same type or amount of Award as granted to the Participant in any other year.

     4.2 Awards. Awards granted under this Plan shall be evidenced by Award Agreements (which need
not be identical) that provide additional terms and conditions associated with such Awards, as
determined by the Committee in its sole discretion; provided, however, that in the
event of any conflict between the provisions of this Plan and any such Award Agreement, the
provisions of this Plan shall prevail.

Article 5. Shares Subject to this Plan and Maximum Awards

     5.1 Number of Shares Available for Awards.

	 	(a)	 	Shares. Subject to adjustment as provided in this Article 5 and Article 11
of the Plan, the maximum number of Shares available for issuance to Participants pursuant to
Awards under the Plan shall be 619,959 Shares and the maximum number of Shares available for
issuance pursuant to (i) Tranche A Options shall be 251,393.37, (ii) Tranche B Options shall
be 125,696.69, (iii) Tranche C Options shall be 125,696.69, and (iv) Options granted after
the Effective Date shall be 117,172.25 (which may include Tranche A Options, Tranche B
Options or Tranche C Options). The Shares available for issuance under the Plan may consist,
in whole or in part, of authorized and unissued Shares or treasury Shares.

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	 	 	 	Any Shares delivered to the Company as part or full payment for the purchase price of an Award
granted under this Plan shall again be available for Awards under this Plan.
	 
	 	(b)	 	Additional Shares. In the event that any outstanding Award expires, is forfeited, cancelled
or otherwise terminated without consideration (i.e., Shares or cash) therefor, the Shares
subject to such Award, to the extent of any such forfeiture, cancellation, expiration,
termination or settlement for cash, shall again be available for Awards under this Plan. If
the Committee authorizes the assumption under this Plan, in connection with any merger,
consolidation, acquisition of property or stock, or reorganization, of awards granted under
another plan, such assumption shall not reduce the maximum number of Shares available for
issuance under this Plan.

Article 6. Options

     6.1 Grant of Options. The Committee is hereby authorized to grant Options to Participants.
Each Option shall permit a Participant to purchase from the Company a stated number of Shares at an
Option Price established by the Committee, subject to the terms and conditions described in this
Article 6 and to such additional terms and conditions, as established by the Committee, in
its sole discretion, that are consistent with the provisions of the Plan. Options shall be
designated as either Incentive Stock Options or Nonqualified Stock Options, provided,
that, Options granted to Directors shall be Nonqualified Stock Options. An Option granted
as an Incentive Stock Option shall, to the extent it fails to qualify as an Incentive Stock Option,
be treated as a Nonqualified Stock Option. Neither the Committee nor the Company or any of its
Affiliates shall be liable to any Participant or to any other Person if it is determined that an
Option intended to be an Incentive Stock Option does not qualify as an Incentive Stock Option. Each
option shall be evidenced by an Award Agreement which shall state the number of Shares covered by
such Option. Such agreements shall conform to the requirements of the Plan, and may contain such
other provisions, as the Committee shall deem advisable.

     6.2 Terms of Option Grant. The Option Price shall be determined by the Committee at the time
of grant, but shall not be less than one-hundred percent (100%) of the Fair Market Value of a Share
on the date of grant. In the case of any Incentive Stock Option granted to a Ten Percent
Shareholder, the Option Price shall not be less than one-hundred-ten percent (110%) of the Fair
Market Value of a Share on the date of grant.

     6.3 Option Term. The term of each Option shall be determined by the Committee at the time of
grant and shall be stated in the Award Agreement, but in no event shall such term be greater than
ten (10) years (or, in the case on an Incentive Stock Option granted to a Ten Percent Shareholder,
five (5) years).

     6.4 Time of Exercise. Options granted under this Article 6 shall be exercisable at
such times and be subject to such restrictions and conditions as the Committee shall in each
instance approve, which terms and restrictions need not be the same for each grant or for each
Participant.

     6.5 Method of Exercise. Except as otherwise provided in the Plan or in an Award Agreement, an
Option may be exercised for all, or from time to time any part, of the Shares for which it is then
exercisable. For purposes of this Article 6, the exercise date of an Option shall be the
later of the date a notice of exercise is received by the Company and, if applicable, the date full
payment is received by the Company pursuant to clauses (a), (b), (c), (d), or (e) of the following
sentence (including the applicable tax withholding pursuant to Section 13.3 of the Plan).
The aggregate Option Price for the

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Shares as to which an Option is exercised shall be paid to the Company at the election of the
Participant: (a) in cash or its equivalent (e.g., by cashier’s check); (b) to the extent permitted
by the Committee, in Shares (whether or not previously owned by the Participant) having a Fair
Market Value equal to the aggregate Option Price for the Shares being purchased and satisfying such
other requirements as may be imposed by the Committee; (c) partly in cash and, to the extent
permitted by the Committee, partly in such Shares (as described in (b) above); (d) to the extent
permitted by the Committee, by reducing the number of Shares otherwise deliverable upon the
exercise of the Option by the number of Shares having a Fair Market Value equal to the Option
Price; or (e) if there is a public market for the Shares at such time, subject to such requirements
as may be imposed by the Committee, through the delivery of irrevocable instructions to a broker to
sell Shares obtained upon the exercise of the Option and to deliver promptly to the Company an
amount out of the proceeds of such sale equal to the aggregate Option Price for the Shares being
purchased. The Committee may prescribe any other method of payment that it determines to be
consistent with applicable law and the purpose of the Plan.

     6.6 Limitations on Incentive Stock Options. Incentive Stock Options may be granted only to
employees of the Company or of a “parent corporation” or “subsidiary corporation” (as such terms
are defined in Section 424 of the Code) at the date of grant. The aggregate Fair Market Value
(generally determined as of the time the Option is granted) of the Shares with respect to which
Incentive Stock Options are exercisable for the first time by a Participant during any calendar
year under all plans of the Company and of any “parent corporation” or “subsidiary corporation”
shall not exceed one hundred thousand dollars ($100,000), or the Option shall be treated as a
Nonqualified Stock Option. For purposes of the preceding sentence, Incentive Stock Options will be
taken into account generally in the order in which they are granted. Each provision of the Plan
and each Award Agreement relating to an Incentive Stock Option shall be construed so that each
Incentive Stock Option shall be an incentive stock option as defined in Section 422 of the Code,
and any provisions of the Award Agreement thereof that cannot be so construed shall be
disregarded.

Article 7. Compliance with Section 409A of the Code

     7.1 General. The Company intends that the Plan and all Awards be structured in compliance
with, or to satisfy an exemption from, Section 409A of the Code and all regulations, guidance,
compliance programs, and other interpretative authority thereunder (“Section 409A”). such
that there are no adverse tax consequences, interest, or penalties under Section 409A as a result
of the payments. Notwithstanding the Company’s intention, in the event any Award is subject to
Section 409A, the Committee may, in its sole discretion and without a Participant’s prior consent,
amend the Plan and/or Awards, adopt policies and procedures, or take any other actions (including
amendments, policies, procedures and actions with retroactive effect) as are necessary or
appropriate to (a) exempt the Plan and/or any Award from the application of Section 409A, (b)
preserve the intended tax treatment of any such Award, or (c) comply with the requirements of
Section 409A, including without limitation any such regulations guidance, compliance programs, and
other interpretative authority that may be issued after the date of the grant.

     7.2 Payments to Specified Employees. Notwithstanding any contrary provision in the Plan or
Award Agreement, any payment(s) of nonqualified deferred compensation (within the meaning of
Section 409A) that are otherwise required to be made under the Plan to a “specified employee” (as
defined under Section 409A) as a result of his or her separation from service (other than a payment
that is not subject to Section 409A) shall be delayed for the first six (6) months following such
separation from service (or, if earlier, until the date of death of the specified employee) and
shall instead be paid (in a manner set forth in the Award Agreement) on the day that immediately
follows the end of such six-month period or as soon as administratively practicable thereafter. Any
remaining payments of nonqualified deferred

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compensation shall be paid without delay and at the time or times such payments are otherwise
scheduled to be made.

     7.3 Separation from Service. A termination of service shall not be deemed to have occurred for
purposes of any provision of the Plan or any Award Agreement providing for the payment of any
amounts or benefits that are considered nonqualified deferred compensation under Section 409A upon
or following a termination of service, unless such termination is also a “separation from service”
within the meaning of Section 409A and the payment thereof prior to a “separation from service”
would violate Section 409A. For purposes of any such provision of the Plan or any Award Agreement
relating to any such payments or benefits, references to a “termination,” “termination of
employment,” “termination of service,” or like terms shall mean “separation from service.”

Article 8. Adjustments

     8.1 Adjustments in Authorized Shares. In the event of any corporate event or transaction
involving the Company, a Subsidiary and/or an Affiliate (including, but not limited to, a change in
the Shares of the Company or the capitalization of the Company) such as a merger, consolidation,
reorganization, recapitalization, separation, stock dividend, stock split, reverse stock split,
split up, spin-off, combination of Shares, exchange of Shares, dividend in kind, extraordinary
cash dividend, amalgamation, or other like change in capital structure (other than normal cash
dividends to stockholders of the Company), or any similar corporate event or transaction, the
Committee, to prevent dilution or enlargement of Participants’ rights under the Plan, shall
substitute or adjust, in its sole discretion, the number, class and kind of Shares or other
property that may be issued under the Plan or under particular forms of Awards, the number, class
and kind of Shares or other property subject to outstanding Awards, the Option Price, grant price
or purchase price applicable to outstanding Awards, the Annual Award Limits, and/or other value
determinations (including performance conditions) applicable to the Plan or outstanding Awards.

     8.2 Realization Event. Upon the occurrence of a Realization Event after the Effective Date,
unless otherwise specifically prohibited under applicable laws or by the rules and regulations of
any governing governmental agencies or national securities exchanges, or unless the Committee shall
determine otherwise in the Award Agreement, the Committee is authorized (but not obligated) to make
the following (or any combination thereof) adjustments in the terms and conditions of outstanding
Awards: (a) continuation or assumption of such outstanding Awards under the Plan by the Company (if
it is the surviving company or corporation) or by the surviving company or corporation or its
parent; (b) substitution by the surviving company or corporation or its parent of awards with
substantially the same terms for outstanding Awards (excluding the consideration payable upon
settlement of the Awards); (c) accelerated exercisability, vesting and/or lapse of restrictions
under outstanding Awards immediately prior to the occurrence of such event; (d) upon written
notice, provide that any outstanding Awards must be exercised, to the extent then exercisable,
during a reasonable period of time immediately prior to the scheduled consummation of the event or
such other period as determined by the Committee (contingent upon the consummation of the event),
and at the end of such period, such Awards shall terminate to the extent not so exercised within
the relevant period; and (e) cancellation of all or any portion of outstanding Awards for fair
value (in the form of cash, Shares, other property or any combination thereof) as determined in the
sole discretion of the Committee and which value may be zero, provided, that, in the case of
Options or similar Awards, the fair value may equal the excess, if any, of the value of the
consideration to be paid in as part of the Realization Event to holders of the same number of
Shares subject to such Awards (or, if no such consideration is paid, Fair Market Value of the
Shares subject to such outstanding Awards or portion thereof being canceled) over the aggregate
Option Price or grant price, as applicable, with respect to such Awards or portion thereof being
canceled.

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Article 9. Duration; Amendment, Modification, Suspension and Termination

     9.1 Duration of Plan. Unless sooner terminated as provided in Section 9.2, this Plan
shall terminate on the tenth anniversary of the Effective Date.

     9.2 Amendment, Modification, Suspension and Termination of Plan. Subject to the terms of the
Plan, the Committee may amend, alter, suspend, discontinue or terminate this Plan or any portion
thereof or any Award (or Award Agreement) hereunder at any time, in its sole discretion,
provided, that, no action taken by the Committee shall adversely affect the
rights granted to any Participant under any outstanding Awards (other than pursuant to Article
7 or Article 8) without the Participant’s written consent.

Article 10. General Provisions

     10.1 No Right to Service or Award. The granting of an Award under the Plan shall impose no
obligation on the Company, any Subsidiary or any Affiliate to continue the service of a Participant
and shall not lessen or affect any right that the Company, any Subsidiary or any Affiliate may have
to terminate the service of such Participant. No Participant or other Person shall have any claim
to be granted any Award, and there is no obligation for uniformity of treatment of Participants, or
holders or beneficiaries of Awards. The terms and conditions of Awards and the Committee’s
determinations and interpretations with respect thereto need not be the same with respect to each
Participant (whether or not such Participants are similarly situated).

     10.2 Settlement of Awards. Each Award Agreement shall establish the form in which the Award
shall be settled. The Committee shall determine whether cash, Awards, other securities or other
property shall be issued or paid in lieu of fractional Shares or whether such fractional Shares or
any rights thereto shall be issued, rounded, forfeited, or otherwise eliminated.

     10.3 Tax Withholding. The Company shall have the power and the right to deduct or withhold
automatically from any amount deliverable under the Award or otherwise, or require a Participant to
remit to the Company, the minimum statutory amount to satisfy federal, state, and local taxes,
domestic or foreign, required by law or regulation to be withheld with respect to any taxable event
arising as a result of the Plan. With respect to required withholding, Participants may elect
(subject to the Company’s automatic withholding right set out above), subject to the approval of
the Committee, to satisfy the withholding requirement, in whole or in part, by having the Company
withhold Shares having a Fair Market Value on the date the tax is to be determined equal to the
minimum statutory total tax that could be imposed on the transaction.

     10.4 No Guarantees Regarding Tax Treatment. Participants (or their beneficiaries) shall be
responsible for all taxes with respect to any Awards under the Plan. The Committee and the Company
make no guarantees to any Person regarding the tax treatment of Awards or payments made under the
Plan. Neither the Committee nor the Company has any obligation to take any action to prevent the
assessment of any tax on any Person with respect to any Award under Section 409A of the Code or
Section 457A of the Code or otherwise and none of the Company, any of its Subsidiaries or
Affiliates, or any of their employees or representatives shall have any liability to a Participant
with respect thereto; provided in all cases that the Company and the Committee administer and
operate the Plan in accordance with its terms.

     10.5 Non-Transferability of Awards. Unless otherwise determined by the Committee, an Award
shall not be transferable or assignable by the Participant except in the event of his death
(subject to the applicable laws of descent and distribution) and any such purported assignment,
alienation, pledge,

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attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company or
any Affiliate. No transfer shall be permitted for value or consideration. An award exercisable
after the death of a Participant may be exercised by the legatees, personal representatives or
distributees of the Participant. Any permitted transfer of the Awards to heirs or legatees of the
Participant shall not be effective to bind the Company unless the Committee shall have been
furnished with written notice thereof and a copy of such evidence as the Committee may deem
necessary to establish the validity of the transfer and the acceptance by the transferee or
transferees of the terms and conditions hereof.

     10.6 Conditions and Restrictions on Shares. The Committee may impose such other conditions or
restrictions on any Shares received in connection with an Award as it may deem advisable or
desirable subject to the limitations set forth in Section 9.2 of this Plan. These restrictions may
include, but shall not be limited to, requirements that the Participant: (a) become a signatory to
the Company’s then-existing stockholders agreement; (b) hold the Shares received for a specified
period of time; or (c) represent and warrant in writing that the Participant is acquiring the
Shares for investment and without any present intention to sell or distribute such Shares. The
certificates for Shares may include any legend which the Committee deems appropriate to reflect any
conditions and restrictions applicable to such Shares.

     10.7 Shares Not Registered. Shares and Awards shall not be issued under this Plan unless the
issuance and delivery of such Shares and any Awards comply with (or are exempt from) all applicable
requirements of law, including, without limitation, the Securities Act of 1933, as amended, the
rules and regulations promulgated thereunder, state securities laws and regulations, and the
regulations of any stock exchange or other securities market on which the Company’s securities may
then be traded. The Company shall not be obligated to file any registration statement under any
applicable securities laws to permit the purchase or issuance of any Shares or any Awards under
this Plan, and accordingly any certificates for Shares or documents granting Awards may have an
appropriate legend or statement of applicable restrictions endorsed thereon. If the Company deems
it necessary to ensure that the issuance of securities under this Plan is not required to be
registered under any applicable securities laws, each Participant to whom such security would be
purchased or issued shall deliver to the Company an agreement or certificate containing such
representations, warranties and covenants as the Company reasonably requires.

     10.8 Awards to Non-U.S. Employees or Directors. To comply with the laws in countries other
than the United States in which the Company or any Subsidiary or Affiliate operates or has
Employees or Directors, the Committee, in its sole discretion, shall have the power and authority
to: (a) determine which Subsidiaries or Affiliates shall be covered by the Plan; (b) determine
which Employees or Directors outside the United States are eligible to participate in the Plan; (c)
modify the terms and conditions of any Award granted to Employees or Directors outside the United
States to comply with applicable foreign laws; (d) take any action, before or after an Award is
made, that it deems advisable to obtain approval or comply with any necessary local government
regulatory exemptions or approvals; and (e) establish subplans and modify exercise procedures and
other terms and procedures, to the extent such actions may be necessary or advisable.

     10.9 Rights as a Stockholder. Except as otherwise provided herein or in the applicable Award
Agreement, a Participant shall have none of the rights of a stockholder with respect to Shares
covered by any Award until the Participant becomes the record holder of such Shares.

     10.10 Severability. If any provision of the Plan or any Award is or becomes or is deemed to be
invalid, illegal, or unenforceable in any jurisdiction, or as to any Person or Award, or would
disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision
shall be construed or deemed amended to conform to applicable laws, or if it cannot be so construed
or deemed amended

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without, in the determination of the Committee, materially altering the intent of the Plan or the
Award, such provision shall be stricken as to such jurisdiction, Person, or Award, and the
remainder of the Plan and any such Award shall remain in full force and effect.

     10.11 Unfunded Plan. Participants shall have no right, title, or interest whatsoever in or to
any investments that the Company or any of its Subsidiaries or Affiliates may make to aid it in
meeting its obligations under the Plan. Nothing contained in the Plan, and no action taken pursuant
to its provisions, shall create or be construed to create a trust of any kind, or a fiduciary
relationship between the Company and any Participant, beneficiary, legal representative, or any
other Person. To the extent that any Person acquires a right to receive payments from the Company
under the Plan, such right shall be no greater than the right of an unsecured general creditor of
the Company. All payments to be made hereunder shall be paid from the general funds of the Company
and no special or separate fund shall be established and no segregation of assets shall be made to
assure payment of such amounts. The Plan is not subject to the U.S. Employee Retirement Income
Security Act of 1974, as amended from time to time.

     10.12 No Constraint on Corporate Action. Nothing in the Plan shall be construed to: (a) limit,
impair, or otherwise affect the Company’s right or power to make adjustments, reclassifications,
reorganizations, or changes of its capital or business structure, or to merge or consolidate, or
dissolve, liquidate, sell, or transfer all or any part of its business or assets; or (b) limit the
right or power of the Company to take any action which such entity deems to be necessary or
appropriate.

     10.13 Successors. All obligations of the Company under the Plan with respect to Awards granted
hereunder shall be binding on any successor to the Company, whether the existence of such successor
is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or
substantially all of the business or assets of the Company.

     10.14 Governing Law. This Plan and each Award Agreement and all claims or causes of action or
other matters (whether in contract, tort or otherwise) that may be based upon, arise out of or
relate to this Plan or any Award Agreement or the negotiation, execution or performance of this
Plan or any Award Agreement shall be governed by and construed in accordance with the laws of the
State of Delaware, excluding any conflict or choice of law rule or principle that might otherwise
refer construction or interpretation of this Plan to the substantive law of another jurisdiction.

     10.15 Effective Date. The Plan shall be effective as of the date of adoption by the Board,
which date is set forth below (the “Effective Date”).

     10.16 Stockholder Approval. The Plan will be submitted for approval by the stockholders of the
Company on the Effective Date.

*           *           *

     This Plan was duly adopted and approved by the Board of Directors of the Company on the 2nd
day of December, 2010.

9exv10w39

Exhibit 10.39

NONQUALIFIED STOCK OPTION AWARD AGREEMENT

          THIS AGREEMENT (the “Award Agreement”), is made effective as of December __, 2010 (the “Date
of Grant”), by and between Thermadyne Technologies Holdings, Inc. (formerly known as Razor Holdco
Inc.), a Delaware corporation (the “Company”), and ___________ (the “Participant”).
Capitalized terms not otherwise defined herein shall have the same meanings as in the Thermadyne
Technologies Holdings, Inc. 2010 Equity Incentive Plan (the “Plan”).

R E C I T A L S:

          WHEREAS, the Company has adopted the Plan, which is incorporated herein by reference and made
a part of this Award Agreement; and

          WHEREAS, the Committee has determined that it would be in the best interests of the Company
and its stockholders to grant the option provided for herein to the Participant pursuant to the
Plan and the terms set forth herein.

          NOW THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties
agree as follows:

     1. Grant of the Option. The Company hereby grants to the Participant the following
Options on the terms and conditions hereinafter set forth:

          Tranche A Options: _____

          Tranche B Options: _____

          Tranche C Options: _____

          The Options are intended to be Nonqualified Stock Options.

     2. Option Price. The purchase price of the Shares subject to the (a) Tranche A
Options shall be $10.00 per Share, (b) Tranche B Options shall be $30.00 per Share and (c) Tranche
C Options shall be $50.00 per Share.

     3. Vesting and Forfeiture.

          (a) Option Vesting. The Options shall vest and be exercisable over the period
beginning on the Closing Date in accordance with the following schedule: 20% of the total Options
issued to the Participant pursuant to this Award Agreement shall vest on the first anniversary of
the Closing Date. The remaining Options issued to the Participant (equal to 80% of the total
amount of the Options issued to the Participant pursuant to this Award Agreement) shall vest in
four (4) equal pro rata installments on each of the following dates: the second through fourth
anniversaries of the Closing Date and ending on the fifth anniversary of the closing date. At any
time, the portion of any Options which have become vested is hereinafter referred to as the “Vested
Portion”.

          (b) Accelerated Vesting Upon a Realization Event. The Options shall, to the extent
not then vested or forfeited and subject to the Participant’s continued Service upon

 

 

consummation of a Realization Event become immediately and fully vested upon a Realization Event.

          (c) Forfeiture. Any unvested portion of the Options shall be forfeited upon the
termination of the Participant’s Service for any reason. In the event the Participant’s Service is
terminated for Cause, the Vested Portion of the Option shall also be forfeited upon such
termination unless the Committee determines in its sole discretion to waive such forfeiture (in
whole or in part), in which case such Options shall remain eligible for vesting in accordance with
the terms of this Award Agreement.

     4. Period of Exercise. Subject to the provisions of the Plan and this Award
Agreement, the Participant may exercise all or any part of the Vested Portion at any time prior to
the earliest to occur of:

          (a) the tenth anniversary of the Date of Grant;

          (b) the date that is 90 days following termination of the Participant’s Service for any reason
other than death or Cause;

          (c) the date that is 180 days following termination of the Participant’s Service due to death
and

          (d) the date of termination of the Participant’s Service for Cause.

     5. Method of Exercise.

          (a) Subject to Section 4 hereof, the Vested Portion may be exercised by delivering to
the Company at its principal office written notice of intent to so exercise in the form attached
hereto as Exhibit A (such notice, a “Notice of Exercise”). Such Notice of Exercise shall
be accompanied by payment in full of the aggregate Option Price for the Shares to be exercised. In
the event the Option is being exercised by the Participant’s representative, the Notice of Exercise
shall be accompanied by proof (satisfactory to the Committee) of the representative’s right to
exercise the Option. The aggregate Option Price may be paid in cash, its equivalent (e.g., by
cashiers check) or any other form of payment permitted by the Committee in accordance with Section
6.5 of the Plan. Neither the Participant nor the Participant’s representative shall have any
rights to dividends or other rights of a stockholder with respect to Shares subject to an Option
until the Participant has given a Notice of Exercise of the Option, paid in full for such Shares,
been issued certificates in the Participant’s name representing such Shares and, if applicable, has
satisfied any other conditions imposed by the Committee pursuant to the Plan.

          (b) Upon exercise of the Option as to any of the Shares, the Company shall issue certificates
in the Participant’s name for such Shares.

          (c) In the event of the Participant’s death, the Vested Portion shall be exercisable by the
Participant’s executor or administrator, or the person or persons to whom the Participant’s rights
under this Award Agreement shall pass by will or by the laws of descent and distribution as the
case may be. Any heir or legatee of the Participant shall take rights herein granted subject to
the terms and conditions of this Award Agreement and the Plan.

     6. No Right to Continued Service. The granting of the Option
evidenced by this Award
Agreement shall impose no obligation on the Company or any Subsidiary or Affiliate to

 

 

continue the
Service of the Participant and shall not lessen or affect any right that the Company or any
Subsidiary or Affiliate may have to terminate the Service of the Participant.

     7. Shares Not Registered. Shares shall not be issued pursuant to this Award Agreement
unless the issuance and delivery of such Shares comply with (or are exempt from) all applicable
requirements of law, including, without limitation, the Securities Act of 1933, as amended,
the rules and regulations promulgated thereunder, state securities laws and regulations, and the
regulations of any stock exchange or other securities market on which the Company’s securities may
then be traded. The Company shall not be obligated to file any registration statement under any
applicable securities laws to permit the purchase or issuance of any Shares or any Awards under
this Award Agreement, and accordingly any certificates for Shares or documents granting Awards may
have an appropriate legend or statement of applicable restrictions endorsed thereon. If the
Company deems it necessary to ensure that the issuance of Shares under this Award Agreement is not
required to be registered under any applicable securities laws, the Participant shall deliver to
the Company an agreement or certificate containing such representations, warranties and covenants
as the Company may reasonably require.

     8. Transferability. Unless otherwise determined by the Committee, the Participant
shall not be permitted to transfer or assign the Option except in the event of death and in
accordance with Section 13.5 of the Plan.

     9. Adjustment of Option. Adjustments to the Options (or any Shares underlying the
Option) shall be made in accordance with the terms of the Plan.

     10. Definitions. For purposes of this Award Agreement:

          “Cause” means with respect to the termination of employment of the Participant by the Company
or any Subsidiary thereof (each, an “Employer”): (i) if the Participant is at the time of
termination a party to an employment or retention agreement with an Employer thereof which defines
such term, the meaning given therein, and (ii) in all other cases, the Participant’s: (A)
continuing failure, for more than 15 days after the Employer’s written notice to the Participant
thereof, by the Participant to perform such duties as are reasonably requested by the Employer as
documented in writing to the Participant; (B) failure to observe material policies generally
applicable to directors, employees and/or consultants of an Employer communicated to the
Participant in writing unless such failure is capable of being cured and is cured within 15 days of
the Participant receiving written notice of such failure; (C) commission of any act of fraud, theft
or financial dishonesty with respect to an Employer or any criminal act involving moral turpitude
or any felony; (D) violation of the material provisions of any employment, consulting,
non-competition or confidentiality agreement with an Employer or any of its Affiliates unless such
violation is capable of being cured and is cured within 15 days of the Participant receiving
written notice of such violation; (E) chronic absenteeism; (F) abuse of alcohol or another
controlled substance; or (G) failure to perform or adhere to the Code of Ethics adopted by the
Board, as the same may be amended by the Board from time to time communicated to the Participant in
writing.

          “Constructive Termination” has the meaning assigned to such term in Participant’s Employment
Agreement or in the event Participant does not have an employment agreement, as determined by the
Committee.

 

 

     11. Withholding. The Company shall have the power and the right to deduct or withhold
automatically from any payment or Shares deliverable under this Award Agreement, or require the
Participant to remit to the Company, the minimum statutory amount to satisfy federal, state, and
local taxes, domestic or foreign, required by law or regulation to be withheld with respect to any
taxable event arising as a result of this Award Agreement. With respect to required withholding,
the Participant may elect, subject to the approval of the Committee, to satisfy the withholding
requirement, in whole or in part, by having the Company withhold Shares having a Fair Market Value
on the date the tax is to be determined equal to the minimum statutory total tax that could be
imposed on the transaction.

     12. Notices. Any notification required by the terms of this Award Agreement shall be
given in writing and shall be deemed effective upon personal delivery or within 3 days of deposit
with the United States Postal Service, by registered or certified mail, with postage and fees
prepaid. A notice shall be addressed to the Company, Attention: General Counsel, at its principal
executive office and to the Participant at the address that he or she most recently provided to the
Company.

     13. Entire Agreement. This Award Agreement, including Exhibit A attached
hereto and the Plan constitute the entire agreement and understanding among the parties hereto in
respect of the subject matter hereof and supersede all prior and contemporaneous arrangements,
agreements and understandings, whether oral or written and whether express or implied, and whether
in term sheets, presentations or otherwise, among the parties hereto, or between any of them, with
respect to the subject matter hereof.

     14. Amendment; Waiver. No amendment or modification of any provision of this Award
Agreement shall be effective unless signed in writing by or on behalf of the Company and the
Participant, except that the Company may amend or modify the Award Agreement without the
Participant’s consent in accordance with the provisions of the Plan. No waiver of any breach or
condition of this Award Agreement shall be deemed to be a waiver of any other or subsequent breach
or condition whether of like or different nature.

     15. Successors and Assigns; No Third Party Beneficiaries. The provisions of this
Award Agreement shall inure to the benefit of, and be binding upon, the Company and its successors
and assigns and upon the Participant, and the Participant’s heirs, successors, legal
representatives and permitted assigns. Nothing in this Award Agreement, express or implied, is
intended to confer on any person other than the Company and the Participant, and their respective
heirs, successors, legal representatives and permitted assigns, any rights, remedies, obligations
or liabilities under or by reason of this Award Agreement.

     16. Choice of Law. This Award Agreement, and all claims or causes of action or other
matters that may be based upon, arise out of or relate to this Award Agreement shall be governed by
and construed in accordance with the laws of the State of Delaware, excluding any conflict or
choice of law rule or principle that might otherwise refer construction or interpretation thereof
to the substantive laws of another jurisdiction.

     17. Option Subject to Plan. By entering into this Award Agreement the Participant
agrees and acknowledges that the Participant has received and read a copy of the Plan. The Option
is subject to the Plan. The terms and provisions of the Plan as it may be amended from time to
time are hereby incorporated herein by reference. In the event of a conflict between any term or
provision contained herein and a term or provision of the Plan, the applicable terms and provisions
of the Plan will govern and prevail.

 

 

     18. Signature in Counterparts. This Award Agreement may be signed in counterparts,
each of which shall be an original, with the same effect as if the signatures thereto and hereto
were upon the same instrument.

* * *

          IN WITNESS WHEREOF, the parties hereto have executed this Award Agreement.

	 	 	 	 	 	 	 

	 	 	THERMADYNE TECHNOLOGIES HOLDINGS, INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 
 Name:
	 	 
	 

	 	 	 	 Title:	 	 

	 	 	 

	AGREED AND ACKNOWLEDGED as
of the date first above written:
	 	 
	 
	 	 
	 

[Name of Optionee]

	 	 

 

 

EXHIBIT A

NOTICE OF EXERCISE

Thermadyne Technologies Holdings, Inc.

16052 Swingley Ridge Road

Suite 300

Chesterfield, MO 63017

	 	 	 	 	 

	Attention: Nick H. Varsam

	 	Date of Exercise:	 	 
	 

	 	 	 	 

Ladies & Gentlemen:

     1. Exercise of Option. This constitutes notice to Thermadyne Technologies Holdings, Inc.
(formerly known as Razor Holdco Inc.), a Delaware corporation (the “Company”) that pursuant
to my Nonqualified Stock Option Award Agreement, dated December __, 2010 (the “Award
Agreement”), granted pursuant to the Plan, I elect to purchase the number of Shares set forth
below and for the price set forth below. Capitalized terms used and not otherwise defined herein
shall have the meaning ascribed to such term in the Award Agreement. By signing and delivering
this notice to the Company, I hereby acknowledge that I am the holder of the Option exercised by
this notice and have full power and authority to exercise the same.

	 	 	 	 	 

	Number of Shares as to
which the Option is exercised

(“Optioned Shares”):

	 	 	 	 
	 	 	 
	 
	 	 	 	 
	Certificates to be issued in

name of:
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	Total exercise price:

	 	 $	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Cash Exercise
	 	 	 	 
	Cash payment delivered
	 	 	 	 
	herewith:

	 	 $	 	 
	 

	 	 	 	 

     2. Form of Payment. Forms of payment other than cash or its equivalent (e.g. by cashier’s
check) are limited by the Plan and are permissible only to the extent approved by the Committee, in
its sole discretion.

     3. Delivery of Payment. With this notice, I hereby deliver to the Company the full purchase
price of the Optioned Shares and any and all withholding taxes due in connection with the exercise
of my Option.

     4. Rights as Stockholder. While the Company will endeavor to process this notice in a timely
manner, I acknowledge that until the issuance of the shares underlying the Optioned Shares (as
evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer
agent of the Company), no right to vote or receive dividends or any other rights as a stockholder
shall exist with respect to such shares, notwithstanding the exercise of my Option. No adjustment
shall be made for a dividend or other right for which the record date is prior to the date of
issuance of the Optioned Shares.

 

 

     5. Interpretation. Any dispute regarding the interpretation of this notice shall be submitted
promptly by me or by the Company to the Committee. The resolution of such a dispute by the
Committee shall be final and binding on all parties.

     6. Entire Agreement. The Plan and the Award Agreement under which the Optioned Shares were
granted are incorporated herein by reference, and together with this notice constitute the entire
agreement of the parties with respect to the subject matter hereof.

	 	 	 

	 

	 	Very truly yours,
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	(social security number)

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