Document:

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                                                                    EXHIBIT 10.3

                                BRADY CORPORATION
                       NONQUALIFIED STOCK OPTION AGREEMENT

      Option granted on _________________, by Brady Corporation, a Wisconsin
corporation (the "Corporation"), to ______________________ (the "Employee").

                                   WITNESSETH:

      WHEREAS, the Board of Directors of the Corporation, desiring to provide
increased long-term incentives for key salaried employees of the Corporation and
any present or future Subsidiary of the Corporation and desiring to facilitate
the efforts of the Corporation and its Subsidiaries to obtain and retain
employees of outstanding ability, adopted the Brady Corporation 2004 Omnibus
Incentive Stock Plan on November 18, 2004 ("the Plan");

      NOW, THEREFORE, it is agreed as follows:

1.    NUMBER OF SHARES OPTIONED; OPTION PRICE

      The Corporation grants to the Employee the right and option to purchase,
      on the terms and conditions hereof, all or any part of an aggregate of
      ________________ (_______) shares of the presently authorized Class A
      Common Stock of the Corporation, $.01 par value, whether unissued or
      issued and reacquired by the Corporation, at the price of $______ per
      share (the "Option Price").

2.    CONDITIONS OF EXERCISE OF OPTIONS DURING EMPLOYEE'S LIFETIME; VESTING OF
      OPTION

      Except as provided hereinafter in this paragraph and in paragraph 3, this
      Option may not be exercised (a) unless Employee is at the date of the
      exercise in the employ of the Corporation or a Subsidiary, and (b) until
      Employee shall have been continuously so employed for a period of at least
      one year from the date hereof. Thereafter, this Option shall be
      exercisable for any amount of shares up to the maximum percentage of
      shares covered by this Option (rounded up to the nearest whole share), as
      follows (but in no event shall this Option be exercisable for any shares
      after the expiration date provided in paragraph 7):

<TABLE>
<CAPTION>
    Number of Completed             Maximum
    Years of Continuous            Percentage
 Employment by Corporation       of Shares For
   or a Subsidiary After        Which Option is
Date of Grant of this Option      Exercisable
----------------------------    ---------------
<S>                             <C>
Less than 1                          Zero
At least 1 but less than 2           33-1/3%
At least 2 but less than 3           66-2/3%
At least 3                              100%
</TABLE>

<PAGE>

      If Employee shall cease to be employed by the Corporation or a Subsidiary
      for any reason other than as provided in paragraph 3 after Employee shall
      have been continuously so employed for one year after the grant of this
      Option, Employee may, at any time within 90 days of such termination, but
      in no event later than the date of expiration of this Option, exercise
      this Option to the extent Employee was entitled to do so on the date of
      such termination. However, if Employee was dismissed for cause, of which
      the Compensation Committee of the Board of Directors of the Corporation
      (the "Committee") shall be the sole judge, this Option shall forthwith
      expire. This Agreement does not confer upon Employee any right of
      continuation of employment by the Corporation or a Subsidiary, nor does it
      impair any right the Corporation or any Subsidiary may have to terminate
      the Employee's employment at any time.

3.    TERMINATION OF EMPLOYMENT

      Notwithstanding the provisions of paragraph 2 hereof, if the Employee:

      (a)   is terminated by the death of the Employee, any unexercised,
            unexpired Stock Options granted hereunder to the Employee 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 Employee's personal
            representative or by the person to whom the Stock Options are
            transferred under the Employee's last will and testament or the
            applicable laws of descent and distribution;

      (b)   dies within 90 days after termination of employment by the
            Corporation or its Affiliates, other than for cause, any
            unexercised, unexpired Stock Options granted hereunder to the
            Employee and exercisable as of the date of such termination of
            employment shall be exercisable, in whole or in part, at any time
            within one year after the date of death, by the Employee's personal
            representative or by the person to whom the Stock Options are
            transferred under the Employee's last will and testament or the
            applicable laws of descent and distribution;

      (c)   is terminated as a result of the disability of the Employee (a
            disability means that the Employee is disabled as a result of
            sickness or injury, such that he or she is unable to satisfactorily
            perform the material duties of his or her job, as determined by the
            Board of Directors, on the basis of medical evidence satisfactory to
            it), any unexercised, unexpired Stock Options granted hereunder to
            the Employee shall become 100% vested and fully exercisable, in
            whole or in part, at any time within one year after the date of
            disability; or

      (d)   is terminated as a result of the Employee's retirement (after age 55
            with ten years of employment with the Corporation or an Affiliate or
            after age 65), any unexercised, unexpired Stock Options granted
            hereunder to the Employee and exercisable as of the date of such
            retirement may be exercised by the Employee at any time within one
            year after the date of retirement.

                                        2

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4.    DEFERRAL OF EXERCISE

      Although the Corporation intends to exert its best efforts so that the
      shares purchasable upon the exercise of this Option will be registered
      under, or exempt from, the registration requirements of, the Securities
      Act of 1933 (the "Act") and any applicable state securities law at the
      time or times this Option (or any portion of this Option) first becomes
      exercisable, if the exercise of this Option would otherwise result in a
      violation by the Corporation of any provision of the Act or of any state
      securities law, the Corporation may require that such exercise be deferred
      until the Corporation has taken appropriate action to avoid any such
      violation.

5.    METHOD OF EXERCISING OPTION

      This Option shall be exercised by delivering to the Corporation, at the
      office of its Treasurer, a written notice of the number of shares with
      respect to which this Option is at the time being exercised and by paying
      the Corporation in full the Option Price of the shares being acquired at
      the time.

6.    METHOD OF PAYMENT

      Payment shall be made either (i) in cash; (ii) by delivering shares of the
      Corporation's Class A Common Stock which have been beneficially owned by
      the Employee, the spouse of the Employee, or both of them, for a period of
      at least six months prior to the time of exercise ("Delivered Stock"); or
      (iii) by delivering a combination of cash and Delivered Stock. Payment in
      the form of Delivered Stock shall be in the amount of the Fair Market
      Value of the stock at the date of exercise, determined in accordance with
      paragraph 10.

7.    EXPIRATION DATE

      This Option shall expire ten years after the date on which this Option was
      granted.

8.    WITHHOLDING TAXES

      The Corporation may require, as a condition to the exercise of this
      Option, that the Employee concurrently pay to the Corporation any taxes
      which the Corporation is required to withhold by reason of such exercise.
      In lieu of part or all of any such payment, the Employee may elect,
      subject to such rules and regulations as the Committee may adopt from time
      to time, to have the Corporation withhold from the shares to be issued
      upon exercise that number of shares having a Fair Market Value, determined
      in accordance with paragraph 10, equal to the amount which the Corporation
      is required to withhold.

9.    LIMIT ON SALE OF STOCK ACQUIRED UPON EXERCISE

      The Net Number of Shares Acquired on exercise may not be sold for a period
      of one year from the date of exercise and shall bear a restrictive legend
      to that effect. The Net Number of Shares Acquired shall be the number of
      shares covered by the Option being

                                        3

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      exercised less a number of shares equal in value at the time of exercise
      to the exercise price plus the required federal, state or other tax or
      withholding upon the grant or exercise.

10.   METHOD OF VALUATION OF STOCK

      The "Fair Market Value" of the Class A Common Stock of the Corporation on
      any date shall mean, 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 sales price
      recorded in composite transactions as reported in the Wall Street Journal
      (Midwest Edition) for such date or, if such date is not a business day or
      if no sales of shares 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 shares on the relevant date.

11.   NO RIGHTS IN SHARES UNTIL CERTIFICATES ISSUED

      Neither the Employee nor his heirs nor his personal representative shall
      have any of the rights or privileges of a stockholder of the Corporation
      in respect of any of the shares issuable upon the exercise of the Option
      herein granted, unless and until certificates representing such shares
      shall have been issued.

12.   OPTION NOT TRANSFERABLE

      No portion of the Option granted hereunder shall be transferable or
      assignable (or made subject to any pledge, lien, obligation or liability
      of an Employee) except (a) by last will and testament or the laws of
      descent and distribution (and upon a transfer or assignment pursuant to an
      Employee's last will and testament or the laws of descent and
      distribution, any Option must be transferred in accordance therewith); (b)
      during the Employee's lifetime, nonqualified stock Options may be
      transferred by an Employee to the Employee's spouse, children or
      grandchildren or to a trust for the benefit of such spouse, children or
      grandchildren, provided that the terms of any such transfer prohibit the
      resale of shares acquired upon exercise of the option at a time during
      which the transferor would not be permitted to sell such shares under the
      Corporation's policy on trading by insiders and are subject to the
      provisions of paragraph 9.

13.   PROHIBITION AGAINST PLEDGE, ATTACHMENT, ETC.

      Except as otherwise herein provided, the Option herein granted and the
      rights and privileges pertaining thereto shall not be transferred,
      assigned, pledged or hypothecated in any way (whether by operation of law
      or otherwise) and shall not be subject to execution, attachment or similar
      process.

                                        4

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14.   CHANGES IN STOCK

      In the event there are any changes in the Class A Common Stock of the
      Corporation through merger, consolidation, reorganization,
      recapitalization, stock dividend, stock split, combination or exchange of
      shares, rights offering or any other change affecting the Class A Common
      Stock of the Corporation, appropriate changes may be made by the
      Committee, subject to approval of the Board of Directors of the
      Corporation, in the aggregate number of shares and the purchase price and
      kind of shares subject to this Option, to prevent substantial dilution or
      enlargement of the rights granted to or available for Employee.

15.   DISSOLUTION OR MERGER

      Anything contained herein to the contrary notwithstanding upon the
      dissolution or liquidation of the Corporation, or upon any merger in which
      the Corporation is not the surviving corporation, at any time prior to the
      expiration date of the termination of this Option, the Employee shall have
      the right within sixty (60) days prior to the effective date of such
      dissolution, liquidation or merger, to surrender all or any unexercised
      portion of this Option to the Corporation for cash, subject to the
      discretion of the Committee as to the exact timing of said surrender.
      Notwithstanding the foregoing, however, in the event Employee has retired
      or died, Employee's right to surrender all or any unexercised portion of
      this Option under this paragraph shall be available only to the extent
      that at the time of any such surrender, Employee would have been entitled
      to exercise this Option under paragraphs 2 or 3 hereof, as the case may
      be. The amount of cash to be paid to Employee for the portion of this
      Option so surrendered, shall be equal to the number of shares of Class A
      Common Stock subject to the surrendered Option multiplied by the
      difference between the Option Price per share, as described in paragraph 1
      hereof, and the Fair Market Value per share, determined in accordance with
      paragraph 10 hereof, as of the time of surrender.

16.   NOTICES

      Any notice to be given to the Corporation under the terms of this
      Agreement shall be addressed to the Corporation in care of its Vice
      President and Chief Financial Officer, and any notice to be given to the
      Employee may be addressed at the address as it appears on the
      Corporation's records, or at such other address as either party may
      hereafter designate in writing to the other. Except as provided in
      paragraph 5 hereof, any such notice shall be deemed to have been duly
      given, if and when enclosed in a properly sealed envelope addressed as
      aforesaid, and deposited, postage prepaid, in the United States mail.

17.   PROVISIONS OF PLAN CONTROLLING

      This Option is subject in all respects to the provisions of the Plan. In
      the event of any conflict between any provisions of this Option and the
      provisions of the Plan, the provisions of the Plan shall control. Terms
      defined in the Plan where used herein shall have the meanings as so
      defined. Employee acknowledges receipt of a copy of the Plan.

                                        5

<PAGE>

18.   WISCONSIN CONTRACT

      This Option has been granted in Wisconsin and shall be construed under the
      laws of that state.

      IN WITNESS WHEREOF, the Corporation has caused these presents to be
executed on its behalf by its President and to be sealed with its corporate
seal, and attested by the Secretary and the Employee has hereunto set his hand
and seal, all as of the day and year first above written, which is the date of
the granting of this Option evidenced hereby.

BRADY CORPORATION

By: _____________________________________

    President and Chief Executive Officer

By: _____________________________________

    Chairman, Compensation Committee

By: _____________________________________

    Secretary

EMPLOYEE:

_________________________________________
[insert name of employee]

                                        6<PAGE>

                                                                    EXHIBIT 10.4

                                 W. H. BRADY CO.
                       1997 NONQUALIFIED STOCK OPTION PLAN
                           FOR NON-EMPLOYEE DIRECTORS

1.    PURPOSE.

      The 1997 Stock Option Plan for Non-Employee Directors (the "Plan) is
intended to attract and retain the services of experienced and knowledgeable
independent directors of W. H. Brady Co. (the "Company") for the benefit of the
Company and its shareholders and to provide additional incentive for such
directors to continue to work for the best interest of the Company and its
shareholders.

2.    SHARES SUBJECT TO THE PLAN.

      There are reserved for issuance upon the exercise of options granted under
the Plan 125,000 Class A Non-Voting Common Shares $.01 par value, of the Company
(the "Company Stock"). Such Company Stock may be authorized and unissued Company
Stock or previously outstanding Company Stock then held in the Company's
treasury. If any option granted under the Plan shall expire or terminate for any
reason without having been exercised in full, the Company 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 Company
(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, "Outside Director" means a member of the Board
who is not an employee of the Company or a subsidiary of the Company. Each
individual who is an Outside Director on the effective date of the Plan shall
automatically be granted an option to purchase 2,500 shares of Company Stock on
the effective date. Each individual who first becomes an Outside Director after
the effective date of the Plan shall automatically be granted an option to
purchase 5,000 shares of Company Stock on the first day of such individual's
first term of office as an Outside Director. On the date of each annual meeting
of the shareholders of the Company subsequent to the effective date of the Plan,
each Outside Director who first became an Outside Director prior to such annual
meeting and who will continue to serve as an Outside Director after such annual
meeting shall automatically be granted an option to purchase 3,000 shares of
Company Stock.

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

<PAGE>

5.    OPTION GRANTS.

      (a)   The purchase price of the Company Stock under each option granted
under the Plan shall be 100% of the Fair Market Value of the Company Stock on
the date such option is granted. For purposes of the Plan "Fair Market Value" on
any date shall mean, with respect to Company 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 as reported in the Wall Street Journal
(Midwest Edition) for such date or, if such date is not a business day or if no
sales of Company 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 shares on the relevant date.

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

<TABLE>
<CAPTION>
   Years After
  Date of Grant        Percentage of Shares
-----------------      --------------------
<S>                    <C>
Less than 1                       0%
1 but less than 2            33-1/3%
2 but less than 3            66-2/3%
3 or more                       100%
</TABLE>

            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 Company.

      Upon exercise, the option price is to be paid in full in cash or, at the
discretion of the Board, in Company 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 Company Stock. Upon
exercise of an option, the Company shall have the right to retain or sell
without notice sufficient Company Stock to cover government withholding taxes or
deductions, if any, as described in Paragraph 9.

      (c)   All rights under any option shall terminate on the date such
Participant ceases to be a Director of the Company, 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 to satisfactorily 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

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hereunder to the Director shall become 100% vested and fully exercisable, in
whole or in part, at any time within one year after such date of termination;
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) the merger or consolidation of the Company with
or into another corporation or corporations in which the Company is not the
surviving corporation, (b) the adoption of any plan for the dissolution of the
Company, or (c) the sale or exchange of all or substantially all the assets of
the Company 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 in which the Company is not the surviving
corporation.

      (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
Company.

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 Company until the option has been exercised and the Company
Stock subject to the option has been registered in the name of the optionee on
the transfer books of the Company.

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
Company 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 common shareholders other than cash dividends and, in the
event of any such change in the outstanding Company 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 Company. 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 Company 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

                                        3

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period during which options may be granted or exercised or (v) the provisions
relating to the administration of the Plan by the Board.

                                        4

<PAGE>

9.    WITHHOLDING.

      Upon the issuance of Company Stock as a result of the exercise of an
option, the Company shall have the right to retain or sell without notice
sufficient Company Stock to cover the amount of any tax required by any
government to be withheld or otherwise deducted and paid with respect to such
Company Stock being issued, remitting any balance to the optionee; provided,
however, that the optionee shall have the right to provide the Company 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 voting
common stock of the shareholders. The Board may in its discretion authorize the
granting of options which shall be expressly subject to the conditions that (i)
the Company 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 Company Stock is traded and (ii) a registration statement under
the Securities Act of 1933 with respect to such shares shall have become
effective.

                                        5

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