Document:

exv10w1

EXHIBIT 10.1

SETTLEMENT AND RELEASE AGREEMENT

     This Settlement Agreement (“Agreement”) is made on May 15, 2009 by and between Bruce Culver
and Donna Culver, husband and wife, (“Claimants”) and TASER International, Inc., a Delaware
corporation (“TASER”). Claimants and TASER are collectively referred to as the “Parties” and at
times each is individually referred to as a “Party.”

BACKGROUND

     In or around July 2000, Claimants loaned TASER the sum of $1,500,000 and in exchange received
a promissory note from TASER (the “Loan”) for an equivalent amount plus warrants for the purchase
of 136,364 shares of TASER common stock at an exercise price of $0.55 per share (the “Warrants”).

     In October 2004, Claimants exercised the Warrants and TASER issued Claimants a Form 1099,
which included the in-the-money value of the Warrants as stock compensation to Claimants based upon
advice of TASER’s outside tax advisors in 2004.

     In 2007, the Claimants informed TASER that their tax advisors determined that the Form 1099
was issued in error since the warrants were granted as part of the Loan and not for services
rendered. TASER issued Claimants an amended Form 1099 to exclude the income relating to the
exercise of the Warrants (the “Amended Form 1099”).

     Claimants have filed an amended 2004 tax return with the Internal Revenue Service (“IRS”)
based on the Amended Form 1099 excluding the income arising by reason of the exercise of the
Warrants and have a refund request pending with the IRS for approximately $2,000,000 as a result of
the amended 2004 tax return.

     Upon advice of Claimants’ advisors, Claimants have made a claim against TASER for the state
and federal tax liability they incurred in 2004 as a result of the Form 1099 issued in 2004 to
Claimants by TASER (“Claimants 2004 Tax Liability”).

     The Parties desire to enter into this Agreement to resolve and settle all claims and disputes
between them arising out of, or in any way related to, Claimants’ 2004 Tax Liability.

     Therefore, the Parties therefore agree as follows:

TERMS AND CONDITIONS

     1 Release. Claimants, on behalf of themselves and any person claiming by or through,
otherwise acting on behalf or under the direction or control of Claimants (collectively the
“Claimants Parties”) fully and forever relieve, release, acquit and discharge TASER, and its
officers, employees, directors, agents, attorneys, successors and all other persons, firms,
entities or corporations related to or in any way affiliated with, claiming by or through,
otherwise acting on behalf or under the direction or control of the foregoing (collectively the
“TASER Parties”), and any of them, from any and all claims, causes of action and liability, of any
kind or nature whatsoever, known or unknown, liquidated or unliquidated, suspected or unsuspected,
that the Claimants now have, or have ever had, or ever will have, against each or any of the TASER
Parties, arising out of or connected in any way with or relating in any manner whatsoever, directly
or indirectly, to Claimants’ 2004 Tax Liability or TASER’s issuance of the original Form 1099 to
Claimants (collectively the “Released Matters”).

     2 No Admission of Liability. By executing this Agreement, TASER does not admit any
wrongdoing or liability, nor do the Parties intend this Agreement to be construed as an admission.
This Agreement is executed solely as a compromise of any and all disputed and undisputed claims,
present and possible, which are denied and contested.

     3 Payment. Without admitting liability and subject to Section 5 below, TASER agrees
to pay Claimants the total sum of $350,000 as full and final settlement of the Released Matters.
This payment is inclusive of all claims for attorneys’ fees, costs, expenses, and interest. TASER
will make this payment by wire transfer pursuant to Claimants’ direction after TASER receives a
copy of this Agreement executed by Claimants.

 

 

     4 Pursuit of Tax Refund. Claimants agree to make best faith efforts to continue to
pursue a refund from the IRS arising by reason of the Amended Form 1099 issued by TASER and the
amended 2004 tax return filed by Claimants.

     5 Claw Back. In the event that Claimants are successful in receiving a refund from
the IRS and/or State of California based on Claimants’ amended 2004 income tax return resulting
from the Amended Form 1099, Claimants shall pay to TASER the amount of the refund received up to
the sum of $350,000 within 30 days after receipt of such refund. Claimants shall keep 100% of any
such refund received in excess of the sum of $350,000.

     6 Voluntary Agreement. In entering into this Agreement, Claimants acknowledge and
represent that they reviewed this Agreement with counsel of their choice or had the opportunity to
do so and declined. Therefore, this Agreement will not be construed against the Party or its
representative who drafted this Agreement or any portion thereof. Claimants further represents
that the terms of this Agreement have been completely read by them, and that those terms are fully
understood and voluntarily accepted by them and that they are entering into this Agreement as a
matter of their own free will.

     7 Payment of Applicable Taxes. Claimants are solely responsible for all federal,
state and local taxes that may be owed by Claimants by virtue of the receipt of any portion of the
monetary payment provided under this Agreement. Claimants agrees to indemnify and hold TASER
harmless from any and all liability, including, without limitation, all penalties, interest and
other costs that may be imposed by the IRS or any other governmental agencies regarding any tax
obligations that may arise from the monetary payment made to Claimants under this Agreement.

     8 Miscellaneous.

(a) Each Party will bear its own costs, fees and expenses in any way connected with
the matters which are referenced or covered by this Agreement.

(b) In the event litigation is necessary to enforce a provision or provisions of this
Agreement, all reasonable costs, expenses and reasonable attorney’s fees will be paid
by the non-prevailing Party to the prevailing Party.

(c) This Agreement is binding upon and inures to the benefit of the Parties’
respective legal heirs, successors, and assigns.

(d) This Agreement is governed by the laws of the State of Arizona without regard to
conflict of law principles, and may not be modified or amended except by a writing
signed by all Parties. Each of the Parties irrevocably agrees that the state and
federal courts located in Phoenix, Arizona have exclusive jurisdiction over any suit
or other proceeding arising out of or based upon this Agreement. Each Party waives
any claim that it is not subject personally to the jurisdiction of the state and
federal courts located in Phoenix, Arizona or that any suit or other proceeding is
brought in an inconvenient forum or improper venue.

(e) This Agreement may be executed in multiple counterparts, each of which is
considered an original.

(f) If any provision of this Agreement is held to be invalid or unenforceable, the
remaining terms and conditions will not be affected thereby and will remain in full
force and effect.

11. Entire Agreement. This Agreement constitutes the entire agreement between the
Parties and supersedes all prior and contemporaneous agreements, understandings, negotiations
and discussions, whether oral or written, of the Parties, and there are no warranties,
representations or other agreements between the Parties in connection with the subject matter
of this Agreement other than as set forth in this Agreement.

 

 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed as of the day and year
first written above.

	 	 	 	 	 	 	 
	 	 	Claimants	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Bruce Culver	 	 
	 	 	 	 	 
	 	 	Bruce Culver	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Donna Culver	 	 
	 	 	 	 	 
	 	 	Donna Culver	 	 
	 
	 	 	 	 	 	 
	 	 	TASER INTERNATIONAL, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Patrick W. Smith
 

	 	 
	 

	 	 	 	Patrick W. Smith	 	 
	 	 	Its: Chief Executive Officerexv10w12

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;

	 
	 	(d)	 	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
fourth anniversary of the date of this Agreement; and

	 
	 	(e)	 	the remaining 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
fifth anniversary of the date of this Agreement;

provided, however, that notwithstanding the foregoing, all shares of Common Stock
in respect of which this option is granted shall become immediately purchasable upon a Change in
Control, as defined below.

     For purposes of this Agreement, “Change in Control” means a change in control of the
Company after the date of this Agreement in any one of the following circumstances: (i) any person
shall have become the beneficial owner of or shall have acquired, directly or indirectly,
securities of the Company representing 50% or more (in addition to his current holdings) of the
combined voting power of the Company’s then outstanding voting securities without prior approval of
at least two-thirds of the members of the Board of Directors of the Company in office immediately
prior to such person’s attaining such percentage interest; (ii) the Company is a party to a merger,
consolidation, sale of assets, or other reorganization, or a proxy contest, as a consequence of
which the members of the Board of Directors of the Company in office immediately prior to such
transaction or event constitute less than a majority of the Board thereafter; or (iii) during any
period of two consecutive years, individuals who at the beginning of such period constituted the
Board of Directors of the Company (including for this purpose any new director whose election or
nomination for election by the Company’s shareholders was approved by a vote of at least two-thirds
of the directors then still in office who were directors at the beginning of such period) cease for
any reason to constitute at least a majority of the Board.

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     Notwithstanding the foregoing, if Employee terminates employment with the Company and its
Affiliates on or after the date Employee reaches age 60 and following the 10th
anniversary of Employee’s most recent date of hire with the Company or one of its Affiliates, all
remaining shares of
Common Stock in respect of which this option is granted that have not otherwise vested
pursuant to this Section 4 shall immediately vest on the date Employee’s employment terminates and
may be purchased in whole at any time, or in part from time to time, within the time periods
permitted under Section 2.

     5.   Manner of Exercise. This option may be exercised by written notice signed by the
person entitled to exercise the same and delivered to the President of the Company or sent by
United States registered mail addressed to the Company (for the attention of the President) at its
corporate office in McKinney, Texas. Such notice shall state the number of shares of Common Stock
as to which the option is exercised and shall be accompanied by the full amount of the purchase
price of such shares.

     6.   Payment. The purchase price for the option shares may be paid in cash or, in whole
or in part, by the surrender of issued and outstanding shares of Common Stock of the Company which
shall be credited against the purchase price at the Fair Market Value of the shares surrendered on
the date of exercise of the option.

     7.   Delivery of Shares. Delivery of the certificates representing the shares of Common
Stock purchased upon exercise of this option shall be made promptly after receipt of notice of
exercise and payment of the purchase price and the amount of any withholding taxes to the Company,
if required, provided that the Company shall have such time as it reasonably deems necessary to
qualify or register such shares under any law or governmental rule or regulation that it deems
necessary or desirable.

     8.   Adjustments. In the event that, before delivery by the Company of all the shares
of Common Stock in respect of which this option is granted, the Company shall have effected a
Common Stock split or dividend payable in Common Stock, or the outstanding Common Stock of the
Company shall have been combined into a smaller number of shares, the shares of Common Stock still
subject to this option shall be increased or decreased to reflect proportionately the increase or
decrease in the number of shares outstanding, and the purchase price per share shall be decreased
or increased to make the aggregate purchase price for all the shares then subject to this option
the same as immediately prior to such stock split, stock dividend or combination. In the event of
a reclassification of the shares of Common Stock not covered by the foregoing, or in the event of a
liquidation or reorganization (including a merger, consolidation, spin-off or sale of assets) of
the Company or an Affiliate, the Board of Directors of the company shall make such adjustments, if
any, as it may deem appropriate in the number, purchase price and kind of shares still subject to
this option.

     9.   Transferability. This option is not transferable otherwise than by will and the
laws of descent and distribution and during the lifetime of Employee is exercisable only by
Employee or, if Employee is legally incompetent, by Employee’s legal representative.

     10.   Employment. As consideration for the Company’s grant of this option,
Employee agrees not to leave the employ of the Company or any Affiliate voluntarily for a period of
one year after the date of this Agreement. Nothing in this Agreement, however, confers upon
Employee any right to continue in the employ of the Company or any Affiliate, nor shall this
Agreement interfere in any manner with the right of the Company or any Affiliate to terminate the
employment of Employee with or without cause at any time.

-3-

 

     11.   Notice of Disposition. As consideration for the Company’s grant of this option,
Employee agrees that if and when Employee disposes of any shares of Common Stock purchased by
Employee pursuant to this option, Employee shall promptly notify the Company of such disposition,
including the identity of the transferee of such shares of Common Stock and the consideration
received for the transfer of such shares.

     12.   Option Subject to Plan. By execution of this Agreement, Employee agrees that this
option and the shares of Common Stock to be received upon exercise hereof shall be governed by and
subject to all applicable provisions of the Plan.

     13.   Construction. This Agreement is governed by, and shall be construed and enforced
in accordance with, the laws of the State of Texas. Words of any gender used in this Agreement
shall be construed to include any other gender, unless the context requires otherwise. The
headings of the various sections of this Agreement are intended for convenience of reference only
and shall not be used in construing the terms hereof.

     14.   Application of Section 409A of the Internal Revenue Code. Options granted
pursuant to this Agreement are intended to be exempt from the requirements of Section 409A of the
Internal Revenue Code of 1986, as amended, and this Agreement shall be interpreted in a manner
consistent with that intent; however, the Company makes no representation or guarantee as to the
tax consequences of this Agreement.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above
written.

	 	 	 
	 

	 	The “Company”

ENCORE WIRE CORPORATION
	 
	 	 
	 
	 	 
	 

	 	By:
	 

	 	 

	 

	 	Name:
	 

	 	 

	 

	 	Title:
	 

	 	 

	 
	 	 
	 

	 	“Employee”
	 
	 	 
	 
	 	 
	 

	 	 

	 

	 	[Signature]
	 
	 	 
	 
	 	 
	 

	 	 

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