Document:

exv10wa

Exhibit 10.1

November 20, 2008

Mr. Jeffrey A. Bjorkman

Polaris Industries Inc.

2100 Highway 55

Medina, MN 55340

			
	Re:	 	Employment Arrangements

Dear Jeff:

     I am writing regarding our recent discussion about your plans to retire from Polaris
Industries, Inc. (“Polaris”). Thank you for sharing your plans with me and for agreeing to
postpone complete retirement and to make yourself available to the Company in order to assist with
an orderly transition of your responsibilities and relationships. This letter agreement (the
“Agreement”) is written for the purpose of setting forth the terms and conditions of your continued
employment by Polaris during the transition period and to confirm your retirement benefits.

     1. Title and Position.

     Your employment as Vice President-Operations of Polaris will terminate upon the appointment of
your successor but no later than May 1, 2009 or at such earlier time, but not before January 1,
2009, as you may designate (such date referred to herein as the “Beginning Date”). Thereafter and
during the term of you employment hereunder, you shall be employed as the Senior Operations Advisor
of Polaris to provide advice and counsel on operations, Polaris’ relationships with various third
parties and on other matters within your experience and expertise as may be reasonably requested by
the Chief Executive Officer of Polaris; provided that requests for such services shall not
unreasonably interfere with your other personal, charitable or other business activities. You will
be an employee of Polaris, but not a reporting individual for purposes of Section 16 of the
Securities Exchange Act of 1934, as amended. You will be subject to the insider trading policies
of Polaris.

     2. Term of Employment.

     Unless sooner terminated as provided in Section 4 below, your employment as Senior Operations
Advisor under the terms of this Agreement shall begin on the Beginning Date and shall continue
until January 31, 2010 (such period referred to herein as the “Term”).

     3. Compensation and Benefits.

     (a) Base Salary. During the Term, you will be paid a annual base salary (“Base
Salary”) in the amount of $100,000, payable in accordance with Polaris’ customary payroll policy,
less all applicable withholdings and deductions. We do not anticipate that you will be

 

 

Jeffrey A. Bjorkman

November 20, 2008

Page 2 of 4

awarded either annual bonuses or awards under Polaris’ stock based or other incentive plans
for services performed during the Term.

     (b) Supplemental Perquisites. During the term of your employment hereunder, you will
participate in Polaris’ benefit programs and receive the perquisites described in Exhibit A hereto.

     4. Severance Agreement

     The Severance Agreement between you and Polaris dated January 16, 2008 (the “Severance
Agreement”) remains in full force and effect; provided, however, that for purposes of calculating
the “Non-Change in Control Termination Payment” pursuant paragraph 3(a) of the Severance Agreement,
the amount calculated under paragraph 3(a)(i)(A) of the Severance Agreement shall be your annual
base salary as of the date of this Agreement and the amount calculated under paragraph 3(a)(i)(B)
of the Severance Agreement shall be equal to 80% of your annual base salary as of the date of this
Agreement.

     5. Termination

     (a) Termination of Agreement

     (i) This Agreement and your employment hereunder may be terminated at any time by the
mutual written agreement of you and Polaris.

     (ii) This Agreement and your employment hereunder may be terminated by you for any
reason at any time upon 30 days’ prior written notice to Polaris.

     (iii) This Agreement and your employment hereunder will automatically terminate upon
your death or permanent disability as defined in Polaris’ long term disability plan then in
effect.

     (iv) This Agreement and your employment hereunder may be terminated by Polaris for
Cause (as defined below) immediately upon written notice to you.

(b) Definition of Cause. For purposes of this Agreement only, “Cause” means
(i) repeated violations of the Employee’s employment obligations (other than as a result of
incapacity due to physical or mental illness), which are demonstrably willful and deliberate
on Employee’s part and which are not remedied in a reasonable period after written notice
from the Company specifying such violations; or (ii) conviction for (or plea of nolo
contendere to) a felony.

 

 

 Jeffrey A. Bjorkman

November 20, 2008

 Page 3 of 4

     6. Retirement. Upon the completion of the Term, or upon termination of your
employment in accordance with Section 5 (other than termination as a result of your death) prior
thereto, you will be eligible for early retirement from Polaris for all purposes and eligible to
participate in the benefit plans and receive the payments and perquisites set forth in Paragraph 3
of the Severance Agreement, including, without limitation, Paragraph 3(g).

     7. Stock Options. Upon the termination of your employment in accordance with this
Agreement, other than a termination by Polaris for Cause, the stock option that you were awarded
pursuant to a Stock Option Agreement between you and the Company dated on January 29, 2007 will
vest and become exercisable to the extent not then vested. Additionally, the portion of each of
your then outstanding and exercisable stock options that has not been exercised upon the date of
termination shall continue to be exercisable for a period of 36 months from the date of
termination, but not after the “Expiration Date” set forth in the stock option agreement
memorializing such stock option. You agree to enter into such amendments and other documents as
are reasonably necessary to achieve the foregoing modifications.

     All notices under this Agreement shall be in writing and shall be deemed given if delivered by
hand or mailed by registered or certified mail, return receipt requested, to the party to receive
the same at the address set forth below or such other address as may have been furnished by proper
notice.

	 	 	 	 	 
	 

	 	Polaris:
	 	Polaris Industries Inc.
	 

	 	 	 	2100 Highway 55
	 

	 	 	 	Medina, Minnesota 55340
	 

	 	 	 	Attention: Secretary
	 
	 	 	 	 
	 

	 	You:
	 	Jeffrey A. Bjorkman

     This Agreement is entered into in the State of Minnesota and shall be construed, interpreted
and enforced according to the statutes, rules of law and court decisions of the State of Minnesota.

     This Agreement and the Severance Agreement constitute the entire understanding of the parties
hereto and supersede all prior understandings, whether written or oral, between the parties with
respect to your employment with Polaris.

 

 

Jeffrey A. Bjorkman

November 20, 2008

Page 4 of 4

     Please sign and return a copy of this Agreement indicating that you accept our offer and
confirming the terms of your employment.

	 	 	 	 	 
	 

	 	Very truly yours,	 	 
	 
	 	 	 	 
	 

	 	Polaris Industries Inc.	 	 
	 
	 	 	 	 
	 

	 	/s/ Scott Wine
 

	 	 
	 

	 	By Scott Wine	 	 
	 

	 	Chief Executive Officer	 	 
	 
	 	 	 	 
	Accepted and Confirmed:
	 	 	 	 
	 
	 	 	 	 
	November 20, 2008
	 	 	 	 
	 
	 	 	 	 
	/s/ Jeffrey A. Bjorkman
 

Jeffrey A. Bjorkman

	 	 	 	 

 

 

Exhibit A

Policy & Procedure
 

 

Subject

                PERQUISITES — A2 and B1 and B2 Officer Retirement                                                Revised: 10/2007

 

 

	 	 	 
	Eligibility:

	 	Position of A2 or B1 and B2 level officer age 65.
	 
	 	 
	Medical Insurance

	 	Polaris will provide a fully insured medical insurance plan through the same provider as an active Polaris
employee for eligible retirees and spouses, including a prescription drug supplement, to coincide with
Medicare B. Details are outlined in the summary plan documents.
	 
	 	 
	Dental Insurance

	 	Dental insurance will be continued for the retiree and spouse under a fully insured plan at the same coverage level and with the same provider as an active Polaris employee.
	 
	 	 
	Company Products

	 	Continued use of company products in accordance with the active
officer product program. This includes up to 6 products for B level
officers and 12 products for A2 level officers, accompanied by clothing
and accessories, subject to the rules of the active officer product
program. The Company will also arrange for the use of a demo motorcycle
from one of our dealers when requested anywhere that Polaris has a
Victory dealer.
	 
	 	 
	Physical Exams

	 	Continued annual physicals at the Mayo Clinic for retired officer
and spouse in accordance with the active officer benefit. This is a
taxable benefit and the individual will receive a1099 form for tax
filing purposes.
	 
	 	 
	LTIP

	 	Prorated LTIP payout based on time worked during performance measurement period payable at
the end of the measurement period in accordance with normal payment schedule.exv10w1

Exhibit 10.1

BRADY CORPORATION

2005 NONQUALIFIED STOCK OPTION PLAN

FOR NON-EMPLOYEE DIRECTORS 

1. Purpose.

     The 2005 Stock Option Plan for Non-Employee Directors (the “Plan) is intended to attract and
retain the services of experienced and knowledgeable non-employee directors of Brady Corporation
(the “Corporation”) for the benefit of the Corporation and its shareholders and to provide
additional incentive for such directors to continue to work for the best interest of the
Corporation and its shareholders.

2. Shares Subject to the Plan.

     There are reserved for issuance upon the exercise of options granted under the Plan 300,000
Class A Non-Voting Common Shares $.01 par value, of the Corporation (the “Stock”). Such Stock may
be authorized and unissued Stock or previously outstanding Stock then held in the Corporation’s
treasury. If any option granted under the Plan shall expire or terminate for any reason without
having been exercised in full, the Stock subject to the unexercised portion thereof shall again be
available for the purposes of issuance upon the exercise of options granted under the Plan.

3. Administration.

     The Plan shall be administered by the Board of Directors of the Corporation (the “Board”),
which may delegate any or all of its authority to a Committee of the Board. Subject to the express
provisions of the Plan, the Board shall have authority to interpret the Plan, to prescribe, amend
and rescind rules and regulations relating to it, to determine the terms and provisions of the
option grants and agreements (which shall comply with and be subject to the terms and conditions of
the Plan) and to make all other determinations necessary or advisable for the administration of the
Plan. The Board’s determination of the matters referred to in this Paragraph 3 shall be conclusive.

4. Eligibility.

     For purposes of the Plan, “Non-Employee Director” means a member of the Board who is not an
employee of the Corporation or a subsidiary of the Corporation. After the effective date of the
Plan, each Non-Employee Director who first becomes a Director on an annual meeting date after July
26, 2005 shall automatically be granted an option to purchase 10,000 shares of Stock on a date that
is 14 days after the annual meeting date, or if such person first becomes a Director on a date
other than the annual meeting date, the option shall automatically be granted on a date that is 14
days after first becoming a Director. On a date that is 14 days after each subsequent annual
meeting of the shareholders of the Corporation on or subsequent to the effective date of the Plan,
each Non-Employee Director who will continue to serve as an Non-Employee Director after such annual
meeting shall automatically be granted an option to purchase 6,000 shares of Stock.

 

     Only non-statutory stock options shall be granted under the Plan.

5. Option Grants.

     (a) The purchase price of the Stock under each option granted under the Plan shall be 100% of
the Fair Market Value of the Stock on the date such option is granted. For purposes of the Plan
“Fair Market Value” on any date shall mean, with respect to Stock, if the stock is then listed and
traded on a registered national securities exchange, or is quoted in the NASDAQ National Market
System, the average of the high and low sale prices recorded in composite transactions for such
date or, if such date is not a business day or if no sales of the Stock shall have been reported
with respect to such date, the next preceding business date with respect to which sales were
reported. In the absence of reported sales or if the stock is not so listed or quoted, but is
traded in the over-the-counter market, Fair Market Value shall be the average of the closing bid
and asked prices for such Stock on the relevant date.

     (b) All options shall be exercisable in accordance with the following schedule:

	 	 	 	 	 
	Years After	 	 
	Date of Grant	 	Percentage of Shares
	Less than 1
	 	 	0	%
	1 but less than 2
	 	 	33-1/3	%
	2 but less than 3
	 	 	66-2/3	%
	3 or more
	 	 	100	%

     The term of each option shall be ten years from the date of grant, or such shorter period as
is prescribed in Paragraphs 5(c) and 5(d). Except as provided in Paragraphs 5(c) and 5(d), no
option may be exercised at any time unless the holder is then a director of the Corporation.

     Each option may be exercised in whole or in part from time to time as specified in the
agreements provided, however, that each holder may exercise an option in whole or in part by giving
written notice of the exercise to the Corporation, specifying the number of shares to be purchased
by payment in full of the purchase price therefor. The purchase price may be paid (a) in cash, (b)
by check, (c) with the approval of the Board, or if the applicable agreement so provides, by
delivering shares of Stock (“Delivered Stock”), (d) by surrendering to the Corporation shares of
Stock otherwise receivable upon exercise of the option (a “Net Exercise”), or (e) any combination
of the foregoing. For purposes of the foregoing, Delivered Stock shall be valued at its Fair
Market Value determined as of the business day immediately preceding the date of exercise of the
option and shares of Stock used in a Net Exercise shall be valued at their Fair Market Value
determined as of the date of exercise of the option. No holder shall be under any obligation to
exercise any option hereunder.

     Upon exercise, the option price is to be paid in full in cash or, at the discretion of the
Board, in Stock owned by the optionee having a Fair Market Value on the date of exercise equal to
the aggregate option price or, at the discretion of the Board, in a combination of cash and Stock.

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     (c) All rights under any option shall terminate on the date such Participant ceases to be a
Director of the Corporation, except that (a) if the Directorship is terminated by the death of the
Director, any unexercised, unexpired Stock Options granted hereunder to the Director shall be 100%
vested and fully exercisable, in whole or in part, at any time within one year after the date of
death, by the Director’s personal representative or by the person to whom the options are
transferred under the Director’s last will and testament or the applicable laws of descent and
distribution; (b) if the Directorship is terminated as a result of the disability of the Director
(a disability means that the Director is disabled as a result of sickness or injury, such that he
or she is unable satisfactorily to perform the Director duties, as determined by the Board of
Directors, on the basis of medical evidence satisfactory to it), any unexercised, unexpired options
granted hereunder to the Director shall become 100% vested and fully exercisable, in whole or in
part, at any time within one year after the date of disability; (c) if the Directorship is
terminated and the Director has been a member of the Board of Directors for at least three years,
any unexercised, unexpired options granted hereunder to the Director shall continue to vest as
provided in Paragraph 5(b) and any option that is or becomes vested may be exercised within the
term of such option; and (d) if the Directorship is terminated for any reason other than (a), (b)
or (c) above, any unexercised, unexpired options granted hereunder and exercisable as of the date
of such termination shall be exercisable in whole or in part at any time within 90 days after such
date of termination.

     (d) In the event of (a) a merger, consolidation, or reorganization with another corporation in
which the Corporation is not the surviving corporation or a merger, consolidation or reorganization
with another corporation in which the Corporation is the surviving corporation, but the Stock
ceases to be publicly traded, (b) the adoption of any plan for the dissolution of the Corporation,
or (c) the sale or exchange of all or substantially all the assets of the Corporation for cash or
for shares of stock or other securities of another corporation, all then-unexercised options shall
become fully exercisable immediately prior to any such event.

     (e) Nothing in the Plan or in any option granted pursuant to the Plan shall confer on any
individual any right to continue as a director of the Corporation.

6. Transferability and Shareholder Rights of Holders of Options.

     No options granted under the Plan shall be transferable otherwise than by will or by the laws
of descent and distribution, and an option may be exercised, during the lifetime of an optionee,
only by the optionee or optionee’s guardian or legal representative. An optionee shall have none of
the rights of a shareholder of the Corporation until the option has been exercised and the Stock
subject to the option has been registered in the name of the optionee on the transfer books of the
Corporation.

7. Adjustments upon Changes in Capitalization.

     Notwithstanding any other provisions of the Plan, the number and class of shares subject to
the options and the option prices of options covered thereby shall be proportionately adjusted in
the event of changes in the outstanding Stock by reason of stock dividends, stock splits,
recapitalizations, mergers, consolidations, combinations or exchanges of shares, split-ups,
split-offs, spin-offs, liquidations or other similar changes in capitalization, or any distribution
to

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common shareholders other than cash dividends and, in the event of any such change in the
outstanding Stock, the aggregate number and class of shares available under the Plan and the number
of shares as to which options may be granted shall be appropriately adjusted by the Board.

8. Amendment and Termination.

     Unless the Plan shall theretofore have been terminated as hereinafter provided, the Plan shall
terminate on, and no awards of options shall be made after, the tenth anniversary of the effective
date of the Plan; provided, however, that such termination shall have no effect on options granted
prior thereto. The Plan may be terminated, modified or amended by the shareholders of the
Corporation. The Board may also terminate the Plan or modify or amend the Plan in such respects as
it shall deem advisable in order to conform to any change in any law or regulation applicable
thereto, or in other respects which shall not change (i) the total number of shares of Stock as to
which options may be granted, (ii) the class of persons eligible to receive options under the Plan,
(iii) the manner of determining the option prices, (iv) the period during which options may be
granted or exercised or (v) the provisions relating to the administration of the Plan by the Board.

9. Withholding.

     Upon the issuance of Stock as a result of the exercise of an option, the Corporation shall
have the right to retain or sell without notice sufficient Stock to cover the amount of any tax
required by any government to be withheld or otherwise deducted and paid with respect to such Stock
being issued, remitting any balance to the optionee; provided, however, that the optionee shall
have the right to provide the Corporation with the funds to enable it to pay such tax.

10. Effectiveness of the Plan.

     The Plan shall become effective on the day following the date the Plan is approved by the vote
of the holders of a majority of the outstanding shares of the Corporation’s Class B Voting Common
Stock. The Board may in its discretion authorize the granting of options which shall be expressly
subject to the conditions that (i) the Stock reserved for issue under the Plan shall have been duly
listed, upon official notice of issuance, upon each stock exchange in the United States upon which
the Stock is traded and (ii) a registration statement under the Securities Act of 1933 with respect
to such shares shall have become effective.

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