Document:

exv10w8

 

Exhibit 10.8

BRADY CORPORATION

NONQUALIFIED STOCK OPTION AGREEMENT

          Option granted on ___, 200_, 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):

	 	 	 	 	 
	 
	 	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
	 
	 	 	 	 
	 
	 	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%

 

 

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.

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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 9.
	 
	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 9,
equal to the amount which the Corporation is required to withhold.
	 
	9.	 	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

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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.

	10.	 	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.
	 
	11.	 	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.
	 
	12.	 	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.
	 
	13.	 	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.

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	14.	 	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 9 hereof, as of the time of surrender.
	 
	15.	 	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.
	 
	16.	 	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.
	 
	17.	 	Wisconsin Contract
	 
	 	 	This Option has been granted in Wisconsin and shall be construed under the laws of that
state.

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          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:  	 	 	 
	 	 	Frank M. Jaehnert 	 
	 	 	President and Chief Executive Officer 	 
	 
	 	 	 
	By:  	 	 	 
	 	 	Gary E. Nei 	 
	 	 	Chairman, Compensation Committee 	 
	 
	 	 	 
	By:  	 	 	 
	 	 	Conrad G. Goodkind 	 
	 	 	Secretary 	 
	 
	EMPLOYEE:	 
	 	 
	Employee Name (Country)

6Exhibit 10.1

Summary of the Salaries 

for the Named Executive Officers

of InfoTech USA, Inc.

	
             
 	
            
Base Salary (1) (2) (3)
 
 
	
            
Name and Title of Executive Officer
 
 	
            
2005
 
 	
            
2004
 
 
	
            J. Robert Patterson
 Vice President, Chief Financial Officer and Treasurer
 	
            $132,500
 	
            $120,250
 
	
            Sebastian F. Perez
 Chief Operating Officer and acting President and Chief Executive Officer
 	
            138,750
 	
            138,750
 

	
             
 	
            (1)
 	
            The named executive officers were determined by reference to the executive officers who will be named in the Summary Compensation Table of the Company’s 2005 Proxy Statement
 

	
             
 	
            (2)
 	
            In September of each year, the Compensation Committee meets to determine whether, based on market data, the performance of each executive officer and the performance of the Company during the preceding fiscal year, base salaries for the named executive officers should be increased.  Additionally, base salaries for the named executive officers will generally increase concurrent with an officer’s promotion or an increase in an officer’s responsibilities, as may be determined by the Compensation Committee from time to time.
 

	
             
 	
            (3)
 	
            In addition to the base salary listed above, certain of the executive officers listed may receive perquisites, including automobile allowances.

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