PACCAR Inc Nonstatutory Stock Option Agreement under Long Term Incentive Plan
This agreement is between PACCAR Inc and an employee, granting the employee the right to purchase company stock at a set price as part of the PACCAR Inc Long Term Incentive Plan. The agreement outlines when and how the employee can exercise the option, including rules for retirement, resignation, termination, and other employment changes. The option cannot be transferred and may be forfeited under certain conditions, such as termination for cause. The agreement is designed to encourage the employee to remain with the company and contribute to its success.
Exhibit 10(h)
LONG TERM INCENTIVE PLAN
NonSTATUTORY STOCK OPTION AGREEMENT
THIS NONSTATUTORY STOCK OPTION AGREEMENT ("Agreement"), entered into as of <award_date> between PACCAR Inc, a Delaware corporation (the "Company"), and <first_name> <last_name> (the "Optionee").
Recitals
Agreements
Except as otherwise provided in this Agreement, the Option and the rights and privileges conferred hereby shall not be transferred, assigned, pledged or
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hypothecated in any way (whether by operation of law or otherwise) and shall not be subject to sale under execution, attachment or similar process. Upon any attempt to transfer, assign, pledge, hypothecate or otherwise dispose of the Option, or of any right or privilege conferred hereby, contrary to the provisions hereof, or upon any attempted sale under any execution, attachment or similar process upon the rights and privileges conferred hereby, the Option and the rights and privileges conferred by this Agreement shall immediately become null and void.
The portion of the Option exercisable upon retirement shall be determined by multiplying the number of option shares granted by a fraction, the numerator of which is the number of full months Optionee worked during the LTIP performance period for which the Option was granted and the denominator of which is 36, such product to be rounded down to the nearest whole share. The portion of the Option which does not become exercisable under this Section 3(b) will be forfeited as of the date of Optionee’s termination of employment.
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The Exercise Price for each share of Stock to be purchased on the exercise of the Option shall be paid in lawful money of the United States of America or in one or more of the forms described in Article 6 of the Plan.
Except as otherwise stated herein, the Option may be exercised until the earliest to occur of the following dates to the extent so specified:
"Cause" means:
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THE SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED.
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Any issue by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number or Exercise Price of the shares of Stock subject to the Option. The grant of the Option shall not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes of its capital or business structure, to merge or consolidate or to dissolve, liquidate, sell or transfer all or any part of its business or assets.
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I agree to the terms and conditions of this stock option agreement and acknowledge having received the following plan documents:
Optionee's Signature:
<first_name> <last_name>
Date: <award_date>
Address: <address_1> <address_2> <city>, <state> <zip>
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PACCAR Inc
By: Corporate Human Resources
Date: <award_date>
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