For a retrofit that I am making, I chose to acquire 10000CPR encoders that are available at UsDigital. It is the E6 model with differential output and index. They are listed at about 125 USD.
Due to the fact that I needed 3 units and they offer a discount for 5 units, I decided to buy 5 units and now I have 2 units in excess.
For anyone that might be interested, I can make a reasonable price for 2 units (they are brand new - in fact so new that they didn't even arrived!). Since they will be sold already in Europe this might represent a opportunity as the importation taxes are already payed for.