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ENCORE WIRE CORPORATION STOCK OPTION AGREEMENT

Option Agreement

ENCORE WIRE CORPORATION STOCK OPTION AGREEMENT | Document Parties: ENCORE WIRE CORP | ENCORE WIRE CORPORATION You are currently viewing:
This Option Agreement involves

ENCORE WIRE CORP | ENCORE WIRE CORPORATION

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Title: ENCORE WIRE CORPORATION STOCK OPTION AGREEMENT
Governing Law: Texas     Date: 8/7/2009
Industry: Misc. Fabricated Products     Sector: Basic Materials

ENCORE WIRE CORPORATION STOCK OPTION AGREEMENT, Parties: encore wire corp , encore wire corporation
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Exhibit 10.12

ENCORE WIRE CORPORATION

STOCK OPTION AGREEMENT

     THIS AGREEMENT, made as of this       day of                           , by and between Encore Wire Corporation, a Delaware corporation (the “Company”), and                                          (“Employee”);

W I T N E S S E T H:

     WHEREAS, the Board of Directors of the Company has determined that it is desirable to grant an option under the Encore Wire Corporation 1999 Stock Option Plan (the “Plan”) to Employee, who is currently employed by the Company or an affiliate of the Company;

     NOW, THEREFORE, the Company and Employee hereby agree as follows:

     1.    Definitions . As used in this Agreement, the following terms shall have the following meanings, respectively:

 

(a)

 

“Affiliate” shall have the meaning set forth in Section 2(a) of the Plan and shall include any party now or hereafter coming within that definition.

 

 

(b)

 

“Common Stock” shall have the meaning set forth in Section 2(e) of the Plan.

 

 

(c)

 

“Fair Market Value” shall have the meaning set forth in Section 2(h) of the Plan.

     2.    Option . The Company hereby grants to Employee the option to purchase, as hereinafter set forth,                      shares of the Common Stock of the Company at a price of $                      per share, for a period commencing on the date provided in Section 4 hereof and terminating on the first to occur of (i) the expiration of ten years from the date of this Agreement, or (ii) when the employment of Employee by the Company or any of its Affiliates terminates for any reason; provided, however, that if said employment terminates less than ten years from the date hereof other than by reason of death or disability, then Employee may exercise this option, to the extent he was entitled to do so at the date of termination of employment, at any time within three months after such termination, but not after the expiration of the ten-year period; provided further that if said employment terminates less than ten years from the date hereof by reason of Employee’s becoming permanently and totally disabled (within the meaning of Section 22(e)(3) of the Internal Revenue Code of 1986, as amended), then Employee (or Employee’s legal representative if Employee is legally incompetent) may exercise this option, to the extent he was entitled to do so at the date of such termination, at any time within one year after such termination but not after the expiration of the ten-year period; and provided further that if said employment terminates less than ten years from the date hereof by reason of Employee’s death, then the executor or administrator of Employee’s estate or anyone who shall have acquired this option by will or pursuant to the laws of descent and distribution may exercise this option, to the extent Employee was entitled to do so on the date of his death, at any time within one year after such death but not after the expiration of the ten-year period. Anything to the contrary herein notwithstanding, the option granted hereunder shall terminate immediately upon the Employee’s termination of employment on account of fraud, dishonesty or the performance of other acts detrimental to the Company. A transfer of employment without interruption of service between or among the Company and any of its Affiliates shall not be considered a termination of employment for purposes of this Agreement. This option is intended to qualify as an incentive stock option as defined in Internal Revenue Code Section 422.

 


 

     3.    Exercise During Employment . Except as provided in Section 2 hereof, this option may not be exercised unless Employee is at the time of exercise an employee of the Company or an Affiliate.

     4.    Vesting . Subject to the provisions of Sections 2 and 3 hereof, this option may only be exercised in accordance with the following:

 

(a)

 

a number of whole shares of Common Stock which does not exceed twenty percent of the shares of Common Stock in respect of which this option is granted may be purchased in whole at any time, or in part from time to time, on or after the first anniversary of the date of this Agreement;

 

 

(b)

 

an additional number of whole shares of Common Stock which does not exceed twenty percent of the shares of Common Stock in respect of which this option is granted may be purchased in whole at any time, or in part from time to time, on or after the second anniversary of the date of this Agreement;

 

 

(c)

 

an additional number of whole shares of Common Stock which does not exceed twenty percent of the shares of Common Stock in respect of which this option is granted may be purchased in whole at any time, or in part from time to time, on or after the third anniversary of the date of this Agreement;

 

 
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