Document:

Offer Letter to Terry M. Murphy

 Exhibit 10.L 
 

 
 Human Resources & Public Affairs 
 P. O. Box 245008, Milwaukee, WI 53224-9508 
 Telephone: 414-359-4100 
 October 17, 2005 
 Mr. Terry Murphy 
 11627 Gallant Ridge Lane 
 Houston, TX 77082 
 Dear Terry: 
 This letter amends our offer of employment to you dated
October 7, 2005 as follows: 
 Special Severance Provision: In the unlikely event your employment is terminated by A.O. Smith for any reason
other than “for Cause” (i.e. dishonesty, insubordination, etc), the Company will extend your salary and benefits for a period of eighteen (18) months following the date of termination. This period of severance payment would likewise
be included in the benefit determination under the A.O. Smith Retirement Plan 
 Pension Supplement: As an enhancement to the pension program, we will
add three (3) additional years of credited service for your pension calculation in the A.O. Smith Corporation Executive Supplemental Pension Plan once you have achieved five (5) years of service with A.O. Smith. This enhancement is in lieu
of the enhancement noted in your original offer letter granting you five (5) additional years for seven (7) years of service. 
 Special
Retirement Provision for Combined Executive Incentive Compensation Plan: For the purposes of determining retirement eligibility necessary for the A.O. Smith Combined Executive Incentive Compensation Plan, you will be deemed “retirement
eligible” once you have achieved five (5) years of service with A.O. Smith. 
 Signing Bonus: We will increase the amount of your signing
bonus to $100,000, payable within 30 days of your A.O. Smith start date. 
 Restricted Stock Units: In lieu of granting you 18,500 shares of
Restricted Stock as indicated in your initial offer letter, we will instead grant you 21,000 Restricted Stock Units on your first day of employment. A Restricted Stock Unit, also called Phantom Stock, is a contractual right to receive a share of
Company stock on the vesting date, which is three years from the grant date. 

 Terry Murphy 
 October 17, 2005 
 Page 2 
 Stock Options:
We will increase your grant of Stock Options to 18,000 shares with a per share option price equal to the fair market value of the stock on the date you begin employment. This grant has a value of approximately $187,000 based on the current market
price. The Stock Option expires ten years from the date of grant, and is exercisable as follows: 
  

	 	•	 	 1/3 of the shares at the end of year one 

  

	 	•	 	 1/3 of the shares at the end of year two 

  

	 	•	 	 1/3 of the shares at the end of year three 

 Terry, I
hope you find this enhancement to our original offer helpful in making your decision to join A.O. Smith. After you have had a chance to review this change, please call me with any further questions. 

	
	Very truly yours,
	
	A. O. SMITH CORPORATION
	
	/s/ Mark A. Petrarca
	Mark A. Petrarca
	Vice President
	Human Resources & Public AffairsOffer Letter to Ajita G. Rajendra

 Exhibit 10.M 
 

 
 WORLD HEADQUARTERS 
 Human Resources & Public Affairs 
 P. O. Box 245008, Milwaukee, WI 53224-9508 
 Telephone: 414-359-4100 
 September 20,
2004 
 UPS OVERNIGHT  
 Mr. Ajita G. Rajendra 
 19 Winged Foot Drive 
 Martinez, GA 30907 
 Dear Ajita: 
 I hope this letter finds you enjoying the “Harvard experience,” In light of the number of changes to our original employment offer to you (outlined in our letter of August 10,
2004), I thought it important to detail those changes for you to assist in your decision making. 
 The position being offered is Senior Vice
President of A. O. Smith Corporation and President of the Water Products Company. 
 Changes to our original offer are as follows:

  

	 1.
	 Executive Bonus Plan – Given that your start of employment may extend into the first quarter of 2005, we have agreed to calculate your bonus (for
2005) on a full-year basis as versus a pro-rata and the amount of the bonus will be a minimum of $100,000. 

  

	 2.
	 Executive Restricted Stock Award – The Company had agreed to increase the stock award from 10,000 shares to 15,000 shares at the start of your
employment. Given the fact the stock had a market price of approximately $26.00 at the time, we will increase the number of shares if the market price of the stock is below $26.00 on your employment date to equalize value.

  

	 3.
	 Ajita, a special severance provision is included in this amended employment offer in the unlikely case it would be necessary. The severance benefit would
be applicable in the event of your termination by the Company except if such termination is “for cause” (i.e. dishonesty, insubordination, etc.). Under this severance benefit, the 

	

	 	 
Company will extend both your salary and benefits for a period of eighteen (18) months following the date of termination. The period of severance
payment would likewise be included in benefit determination under the A. O. Smith Pension Plan. 

  

	4.	Pension Supplement: As a supplement to the basic pension programming outlined in our original offer of employment, the Company has agreed to provide a pension supplement as
follows: 

  

			
	 Eligibility
	  	 Benefit Level

	With the completion of 10 years of service with A. O. Smith	  	A $50,000/year supplement paid as a straight life annuity commencing with your retirement from A. O. Smith Corporation
		
	With the completion of 12 years of service with A. O. Smith	  	An additional $15,000/year supplement or a total supplement of $65,000/year paid as a straight life annuity commencing with your retirement from A. O. Smith

  

	5.	Vacation – This amended offer increases your annual vacation eligibility from three (3) weeks to four (4) weeks. 

  

	6.	Finally, under the new time line relative to your start of employment with A. O. Smith, we have discussed and agreed to pay the tuition charge for your Harvard training should
Kennametal pursue that matter with you. 

 Ajita, after you have had an opportunity to review the offer changes, please call me with any
further questions. 
  

	
	Very truly yours,
	
	A. O. SMITH CORPORATION
	
	/s/ Edward J. O’Connor
	Edward J. O’Connor
	Vice President
	Human Resources & Public Affairs

 EJO/lb 
 Enclosures 
  

 - 2 -exhibit_10-1.htm

    
      

    

    EXHIBIT
10.1   2007 NON-QUALIFIED STOCK COMPENSATION PLAN

    

    

    2007
NON-QUALIFIED STOCK COMPENSATION PLAN

    

    1.            
Purpose of
Plan

    

    1.1           This
2007 NON-QUALIFIED STOCK COMPENSATION PLAN
(the “Plan”) of CCR Crystal Research Corporation, a Nevada corporation (the
“Company”) for employees, directors, officers consultants, advisors and other
persons associated with the Company, is intended to advance the best interests
of the Company by providing those persons who have a substantial responsibility
for its management and growth with additional incentive and by increasing their
proprietary interest in the success of the Company, thereby encouraging them to
maintain their relationships with the Company.  Further, the
availability and offering of stock options and common stock under the Plan
supports and increases the Company's ability to attract and retain individuals
of exceptional talent upon whom, in large measure, the sustained progress,
growth and profitability of the Company depends.

    

    2.            
Definitions

    

    2.1           For
Plan purposes, except where the context might clearly indicate otherwise, the
following terms shall have the meanings set forth below:

    

    “Board” shall mean the Board of
Directors of the Company.

    

    “Committee”
shall mean the Compensation Committee, or such other committee appointed by the
Board, which shall be designated by the Board to administer the Plan, or the
Board if no committees have been established.  The Committee shall be
composed of one or
more persons as from time to time are appointed to serve by the
Board.  Each member of the Committee, while serving as such, shall be
a disinterested person with the meaning of Rule 16b-3 promulgated under the
Securities Exchange Act of 1934.

    

    “Common
Shares” shall mean the Company's Common Shares, $.001 par value per share, or,
in the event that the outstanding Common Shares are hereafter changed into or
exchanged for different shares of securities of the Company, such other shares
or securities.

    

    “Company”
shall mean CR Crystal Research Corporation, a Nevada corporation, and any
subsidiary corporation of CR Crystal Research Corporation, as such terms are
defined in Nevada Business Corporation Act.

    

    “Fair
Market Value” shall mean, with respect to the date a given stock option is
granted or exercised, the average of the highest and lowest reported sales
prices of the Common Shares, as reported by such responsible reporting service
as the Committee may select, or if there were not transactions in the Common
Shares on such day, then the last preceding day on which transactions took
place.  The above withstanding, the Committee may determine the Fair
Market Value in such other
manner as it may deem more equitable for Plan purposes or as is required by
applicable laws or regulations.

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

        2007
NON-QUALIFIED STOCK COMPENSATION PLAN - continued

      

    

     

     

    “Optionee” shall mean an employee of
the company who has been granted one or more Stock Options under the
Plan.

    

    “Common Stock” shall mean shares of
common stock which are issued by the Company pursuant to Section 5,
below.

    

    “Common
Stockholder” means
the employee of, consultant to, or director of the Company or other person to
whom shares of Common Stock are issued pursuant to this Plan.

    

    “Common
Stock Agreement” means an agreement executed by a Common Stockholder and the
Company as contemplated by Section 5, below, which imposes on the shares of
Common Stock held by the Common Stockholder such restrictions as the Board or
Committee deem appropriate.

    

    “Stock Option” or “Non-Qualified Stock
Option” or “NQSO” shall mean a stock option granted pursuant to the terms of the
Plan.

    

    “Stock Option Agreement” shall mean the
agreement between the Company and the Optionee under which the Optionee may
purchase Common Shares hereunder.

    

    3.            
Administration of the
Plan

    

    3.1           The
Committee shall administer the Plan and accordingly, it shall have full power to
grant Stock Options and Common Stock, construe and interpret the Plan, establish
rules and regulations and perform all other acts, including the delegation of
administrative responsibilities, it believes reasonable and proper.

    

    3.2           The
determination of those eligible to receive Stock Options and Common Stock, and
the amount, type and timing of each grant and the terms and conditions of the
respective stock option agreements and Common Stock Agreements shall rest in the
sole discretion of the Committee, subject to the provisions of the
Plan.

    

    3.3           The
Committee may cancel any Stock Options awarded under the Plan if an Optionee
conducts himself in a manner which the Committee determines to be inimical to
the best interest of the Company, as set forth more fully in paragraph 8 of
Article 11 of the Plan.

    

    3.4           The
Board, or the Committee, may correct any defect, supply any omission or
reconcile any inconsistency in the Plan, or in any granted Stock Option, in the
manner and to the extent it shall deem necessary to carry it into
effect.

    

    3.5           Any
decision made, or action taken, by the Committee or the Board arising out of or
in connection with the interpretation and administration of the Plan shall be
final and conclusive.

    
      
         

      

      
        2

        
          

        

      

      
         

        2007
NON-QUALIFIED STOCK COMPENSATION PLAN - continued

      

    

    3.6           The
Committee shall, in its discretion, have the power to issue Common Shares to
holders of non-qualified incentive stock option agreements which are outstanding
as of the date hereof , pursuant to the terms of those option
agreements.

    

    3.7           Meetings
of the Committee shall be held at such times and places as shall be determined
by the Committee.  A majority of the members of the Committee shall
constitute a quorum for the transaction of business, and the vote of a majority
of those members present at any meeting shall decide any question brought before
that meeting.  In addition, the Committee may take any action
otherwise proper under the Plan by the affirmative vote, taken without a
meeting, of a majority of its members.

    

    3.8           No
member of the Committee shall be liable for any act or omission of any other
member of the Committee or for any act or omission on his own part, including,
but not limited to, the exercise of any power or discretion given to him under
the Plan, except those resulting from his own gross negligence or willful
misconduct.

    

    3.9           The
Company, through its management, shall supply full and timely information to the
Committee on all matters relating to the eligibility of Optionees, their duties
and performance, and current information on any Optionee's death, retirement,
disability or other termination of association with the Company, and such other
pertinent information as the Committee may require.  The Company shall
furnish the Committee with such clerical and other assistance as is necessary in
the performance of its duties hereunder.

    

    4.            
Shares Subject to the
Plan

    

    4.1           The
total number of shares of the Company available for grants of Stock Options and
Common Stock under the Plan shall be 6,000,000 Common Shares, subject to
adjustment in accordance with Article 7 of the Plan, which shares may be either
authorized but unissued or reacquired Common Shares of the Company.

    

    4.2           If
a Stock Option or portion thereof shall expire or terminate for any reason
without having been exercised in full, the unpurchased shares covered by such
NQSO shall be available for future grants of Stock Options.

    

    5.           
 Award Of Common
Stock

    

    5.1           The
Board or Committee from time to time, in its absolute discretion, may (a) award
Common Stock to employees of, consultants to, and directors of the Company, and
such other persons as the Board or Committee may select, and (b) permit Holders
of Options to exercise such Options prior to full vesting therein and hold the
Common Shares issued upon exercise of the Option as Common Stock.  In
either such event, the owner of such Common Stock shall hold such stock subject
to such vesting schedule as the Board or Committee may impose or such vesting
schedule to which the Option was subject, as determined in the discretion of the
Board or Committee.

    
      
         

      

      
        3

        
          

        

      

      
         

        2007
NON-QUALIFIED STOCK COMPENSATION PLAN - continued

      

    

    5.2           Common
Stock shall be issued only pursuant to a Common Stock or Consulting Agreement,
which shall be executed by the Common Stockholder and the Company and which
shall contain such terms and conditions as the Board or Committee shall
determine consistent with this Plan, including such restrictions on transfer as
are imposed by the Common Stock or Consulting Agreement.

    

    5.3           Upon
delivery of the shares of Common Stock to the Common Stockholder, below, the
Common Stockholder shall have, unless otherwise provided by the Board or
Committee, all the rights of a stockholder with respect to said shares, subject
to the restrictions in the Common Stock or Consulting Agreement, including the
right to receive all dividends and other distributions paid or made with respect
to the Common Stock.

    

    5.4.           Notwithstanding
anything in this Plan or any Common Stock or Consulting Agreement to the
contrary, no Common Stockholders may sell or otherwise transfer, whether or not
for value, any of the Common Stock prior to the date on which the Common
Stockholder is vested therein.

    

    5.5           All
shares of Common Stock issued under this Plan (including any shares of Common
Stock and other securities issued with respect to the shares of Common Stock as
a result of stock dividends, stock splits or similar changes in the capital
structure of the Company) shall be subject to such restrictions as the Board or
Committee shall provide, which restrictions may include, without limitation,
restrictions concerning voting rights, transferability of the Common Stock and
restrictions based on duration of employment with the Company, Company
performance and individual performance; provided that the Board or Committee
may, on such terms and conditions as it may determine to be appropriate, remove
any or all of such restric­tions.  Common Stock may not be sold or
encumbered until all applicable restrictions have terminated or
expire.  The restrictions, if any, imposed by the Board or Committee
or the Board under this Section 5 need not be identical for all Common Stock and
the imposition of any restrictions with respect to any Common Stock shall not
require the imposition of the same or any other restrictions with respect to any
other Common Stock.

    

    5.6           Each
Common Stock or Consulting Agreement shall provide that the Company shall have
the right to either cancel or repurchase from the Common Stockholder the
unvested Common Stock upon a termination of employment, termination of
directorship or termination of a consultancy arrangement, as applicable, at a
cash price per share equal to the purchase price paid by the Common Stockholder
for such Common Stock.

    

    5.7           In
the discretion of the Board or Committee, the Common Stock or Consulting
Agreement may provide that the Company shall have the a right of first refusal
with respect to the Common Stock and a right to repurchase the vested Common
Stock upon a termination of the Common Stockholder's employment with the
Company, the termination of the Common Stockholder's consulting arrangement with
the Company, the termination of the Common Stockholder's service on the
Company's Board, or such other events as the Board or Committee may deem
appropriate.

    
      
         

      

      
        4

        
          

        

      

      
         

        2007
NON-QUALIFIED STOCK COMPENSATION PLAN - continued

      

    

    5.8           The
Board or Committee shall cause a legend or legends to be placed on certificates
representing shares of Common Stock that are subject to restrictions under
Common Stock or Consulting Agreements, which legend or legends shall make
appropriate reference to the applicable restrictions.

    

    6.            
Stock Option Terms and
Conditions

    

    6.1           Consistent
with the Plan's purpose, Stock Options may be granted to non-employee directors
of the Company or other persons who are performing or who have been engaged to
perform services of special importance to the management, operation or
development of the Company.

    

    6.2           All
Stock Options granted under the Plan shall be evidenced by agreements which
shall be subject to applicable provisions of the Plan, and such other provisions
as the Committee may adopt, including the provisions set forth in paragraphs 2
through 10 of this Section 6.

    

    6.3           All
Stock Options granted hereunder must be granted within ten years from the
earlier of the date of this Plan is adopted or approved by the Company's
shareholders.

    

    6.4           No
Stock Option granted to any employee or 10% Shareholder shall be exercisable
after the expiration of ten years from the date such NQSO is
granted.  The Committee, in its discretion, may provide that an Option
shall be exercisable during such ten year period or during any lesser period of
time.

    

    The
Committee may establish installment exercise terms for a Stock Option such that
the NQSO becomes fully exercisable in a series of cumulating
portions.  If an Optionee shall not, in any given installment period,
purchase all the Common Shares which such Optionee is entitled to purchase
within such installment period, such Optionee's right to purchase any Common
Shares not purchased in such installment period shall continue until the
expiration or sooner termination of such NQSO.  The Committee may also
accelerate the exercise of any NQSO.  However, no NQSO, or any portion
thereof, may be exercisable until thirty (30) days following date of grant
(“30-Day Holding Period.”).

    

    6.5           A
Stock Option, or portion thereof, shall be exercised by delivery of
(i)  a written notice of exercise of the Company specifying the number
of common shares to be purchased, and (ii)  payment of the full price
of such Common Shares, as fully set forth in paragraph 6 of this Section
6.

    

    No NQSO
or installment thereof shall be exercisable except with respect to whole shares,
and fractional share interests shall be disregarded.  Not less than
100 Common Shares may be purchased at one time unless the number purchased is
the total number at the time available for purchase under the
NQSO.  Until the Common Shares represented by an exercised NQSO are
issued to an Optionee, he shall have none of the rights of a
shareholder.

    

    

    
      
         

      

      
        5

        
          

        

      

      
         

        2007
NON-QUALIFIED STOCK COMPENSATION PLAN - continued

      

    

    6.6           The
exercise price of a Stock Option, or portion thereof, may be paid:

    

    A.           In
United States dollars, in cash or by cashier's check, certified check, bank
draft or money order, payable to the order of the Company in an amount equal to
the option price;  or

    

    B.           At
the discretion of the Committee, through the delivery of fully paid and
nonassessable Common Shares, with an aggregate Fair Market Value on the date the
NQSO is exercised equal to the option price, provided such tendered Shares have
been owned by the Optionee for at least one year prior to such
exercise;  or

    

    C.           By
a combination of both A and B above.

    

    The Committee shall determine
acceptable methods for tendering Common Shares as payment upon exercise of a
Stock Option and may impose such limitations and prohibitions on the use of
Common Shares to exercise an NQSO as it deems appropriate.

    

    6.7           With
the Optionee's consent, the Committee may cancel any Stock Option issued under
this Plan and issue a new NQSO to such Optionee.

    

    6.8           Except
by will or the laws of descent and distribution, no right or interest in any
Stock Option granted under the Plan shall be assignable or transferable, and no
right or interest of any Optionee shall be liable for, or subject to, any lien,
obligation or liability of the Optionee.  Stock Options shall be
exercisable during the Optionee's lifetime only by the Optionee or the duly
appointed legal representative of an incompetent Optionee.

    

    6.9           If
the Optionee shall die while associated with the Company or within three months
after termination of such association, the personal representative or
administrator of the Optionee's estate or the person(s) to whom an NQSO granted
hereunder shall have been validly transferred by such personal representative or
administrator pursuant to the Optionee's will or the laws of descent and
distribution, shall have the right to exercise the NQSO for one year after the
date of the Optionee's death, to the extent (i)  such NQSO was
exercisable on the date of such termination of employment by death, and (ii)
such NQSO was not exercised, and (iii)  the exercise period may not be
extended beyond the expiration of the term of the Option.

    

    No
transfer of a Stock Option by the will of an Optionee or by the laws of descent
and distribution shall be effective to bind the Company unless the Company shall
have been furnished with written notice thereof and an authenticated copy of the
will and/or such other evidence as the Committee may deem necessary to establish
the validity of the transfer and the acceptance by the transferee or transferee
of the terms and conditions by such Stock Option.

    

    In the
event of death following termination of the Optionee's association with the
Company while any portion of an NQSO remains exercisable, the Committee, in its
discretion, may provide for an extension of the exercise period of up to one
year after the Optionee's death but not beyond the expiration of the term of the
Stock Option.

    
      
         

      

      
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        2007
NON-QUALIFIED STOCK COMPENSATION PLAN - continued

      

    

    

    6.10           Any
Optionee who disposes of Common Shares acquired on the exercise of a NQSO by
sale or exchange either (i) within two years after the date of the grant of the
NQSO under which the stock was acquired, or (ii) within one year after the
acquisition of such Shares, shall notify the Company of such disposition and of
the amount realized upon such disposition.  The transfer of Common
Shares may also be Common by applicable provisions of the Securities Act of
1933, as amended.

    

    7.            
Adjustments or Changes in
Capitalization

    

    7.1           In
the event that the outstanding Common Shares of the Company are hereafter
changed into or exchanged for a different number or kind of shares or other
securities of the Company by reason of merger, consolidation, other
reorganization, recapitalization, reclassification, combination of shares, stock
split-up or stock dividend:

    

    A.           Prompt,
proportionate, equitable, lawful and adequate adjustment shall be made of the
aggregate number and kind of shares subject to Stock Options which may be
granted under the Plan, such that the Optionee shall have the right to purchase
such Common Shares as may be issued in exchange for the Common Shares
purchasable on exercise of the NQSO had such merger, consolidation, other
reorganization, recapitalization, reclassification, combination of shares, stock
split-up or stock dividend not taken place;

    

    B.           Rights
under unexercised Stock Options or portions thereof granted prior to any such
change, both as to the number or kind of shares and the exercise price per
share, shall be adjusted appropriately, provided that such adjustments shall be
made without change in the total exercise price applicable to the unexercised
portion of such NQSO's but by an adjustment in the price for each share covered
by such NQSO's; or

    

    C.           Upon
any dissolution or liquidation of the Company or any merger or combination in
which the Company is not a surviving corporation, each outstanding Stock Option
granted hereunder shall terminate, but the Optionee shall have the right,
immediately prior to such dissolution, liquidation, merger or combination, to
exercise his NQSO in whole or in part, to the extent that it shall not have been
exercised, without regard to any installment exercise provisions in such
NQSO.

    

    7.2           The
foregoing adjustments and the manner of application of the foregoing provisions
shall be determined solely by the Committee, whose determination as to what
adjustments shall be made and the extent thereof, shall be final, binding and
conclusive.  No fractional Shares shall be issued under the Plan on
account of any such adjustments.

    

    8.           
 Merger, Consolidation or
Tender Offer

    

    8.1           If
the Company shall be a party to a binding agreement to any merger, consolidation
or reorganization or sale of substantially all the assets of the Company, each
outstanding Stock Option shall pertain and apply to the securities and/or
property which a shareholder of the number of Common Shares of the Company
subject to the NQSO would be entitled to receive pursuant to such merger,
consolidation or reorganization or sale of assets.

    
      
         

      

      
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        2007
NON-QUALIFIED STOCK COMPENSATION PLAN - continued

      

    

     

    8.2           In
the event that:

    

    A.           Any
person (other than the Company or a director or officer of the Company) shall
acquire more than 20% of the Common Shares of the Company through a tender
offer, exchange offer or otherwise;

    

    B.           A
change in the “control” of the Company occurs, as such term is defined in Rule
405 under the Securities Act of 1933;

    

    C.           There
shall be a sale of all or substantially all of the assets of the
Company;

    

    any then
outstanding Stock Option held by an Optionee, who is deemed by the Committee to
be a statutory officer (“Insider”) for purposes of Section 16 of the Securities
Exchange Act of 1934 shall be entitled to receive, subject to any action by the
Committee revoking such an entitlement as provided for below, in lieu of
exercise of such Stock Option, to the extent that it is then exercisable, a cash
payment in an amount equal to the difference between the aggregate exercise
price of such NQSO, or portion thereof, and, (i)  in the event of an
offer or similar event, the final offer price per share paid for Common Shares,
or such lower price as the Committee may determine to conform an option to
preserve its Stock Option status, times the number of Common Shares covered by
the NQSO or portion thereof, or (ii)  in the case of an event covered
by B or C above, the aggregate Fair Market Value of the Common Shares covered by
the Stock Option, as determined by the Committee at such time.

    

    8.3           Any
payment which the Company is required to make pursuant to paragraph 8.2 of this
Section 8 shall be made within 15 business days, following the event which
results in the Optionee's right to such payment.  In the event of a
tender offer in which fewer than all the shares which are validly tendered in
compliance with such offer are purchased or exchanged, then only that portion of
the shares covered by an NQSO as results from multiplying such shares by a
fraction, the numerator of which is the number of Common Shares acquired
pursuant to the offer and the denominator of which is the number of Common
Shares tendered in compliance with such offer shall be used to determine the
payment thereupon.  To the extent that all or any portion of a Stock
Option shall be affected by this provision, all or such portion of the NQSO
shall be terminated.

    

    8.4           Notwithstanding
paragraphs 8.1 and 8.3 of this Section 8, the Committee may, by unanimous vote
and resolution, unilaterally revoke the benefits of the above provisions;
provided, however, that such vote is taken no later than ten business days
following public announcement of the intent of an offer or the change of
control, whichever occurs earlier.

     

    
      
         

      

      
        8

        
          

        

      

      
         

        2007
NON-QUALIFIED STOCK COMPENSATION PLAN - continued

      

    

    9.            
Amendment and Termination of
Plan

    

    9.1           The
Board may at any time, and from time to time, suspend or terminate the Plan in
whole or in part or amend it from time to time in such respects as the Board may
deem appropriate and in the best interest of the Company.

    

    9.2           No
amendment, suspension or termination of this Plan shall, without the Optionee's
consent, alter or impair any of the rights or obligations under any Stock Option
theretofore granted to him under the Plan.

    

    9.3           The
Board may amend the Plan, subject to the limitations cited above, in such manner
as it deems necessary to permit the granting of Stock Options meeting the
requirements of future amendments or issued regulations, if any, to the
Code.

    

    9.4           No
NQSO may be granted during any suspension of the Plan or after termination of
the Plan.

    

    10.           Government and Other
Regulations

    

    10.1           The
obligation of the Company to issue, transfer and deliver Common Shares for Stock
Options exercised under the Plan shall be subject to all applicable laws,
regulations, rules, orders and approval which shall then be in effect and
required by the relevant stock exchanges on which the Common Shares are traded
and by government entities as set forth below or as the Committee in its sole
discretion shall deem necessary or advisable.  Specifically, in
connection with the Securities Act of 1933, as amended, upon exercise of any
Stock Option, the Company shall not be required to issue Common Shares unless
the Committee has received evidence satisfactory to it to the effect that the
Optionee will not transfer such shares except pursuant to a registration
statement in effect under such Act or unless an opinion of counsel satisfactory
to the Company has been received by the Company to the effect that such
registration is not required.  Any determination in this connection by
the Committee shall be final, binding and conclusive.  The Company
may, but shall in no event be obligated to, take any other affirmative action in
order to cause the exercise of a Stock Option or the issuance of Common Shares
pursuant thereto to comply with any law or regulation of any government
authority.

    

    11.           Miscellaneous
Provisions

    

    11.1           No
person shall have any claim or right to be granted a Stock Option or Common
Stock under the Plan, and the grant of an NQSO or Common Stock under the Plan
shall not be construed as giving an Optionee or Common Stockholder the right to
be retained by the Company.  Furthermore, the Company expressly
reserves the right at any time to terminate its relationship with an Optionee
with or without cause, free from any liability, or any claim under the Plan,
except as provided herein, in an option agreement, or in any agreement between
the Company and the Optionee.

    

    11.2           Any
expenses of administering this Plan shall be borne by the
Company.

    
      
         

      

      
        9

        
          

        

      

      
         

        2007
NON-QUALIFIED STOCK COMPENSATION PLAN - continued

      

    

    11.3           The
payment received from Optionee from the exercise of Stock Options under the Plan
shall be used for the general corporate purposes of the Company.

    

    11.4           The
place of administration of the Plan shall be in the State of Nevada, or such
other place as determined from time to time by the Board, and the validity,
construction, interpretation, administration and effect of the Plan and of its
rules and regulations, and rights relating to the Plan, shall be determined
solely in accordance with the laws of the State of Nevada.

    

    11.5           Without
amending the Plan, grants may be made to persons who are foreign nationals or
employed outside the United States, or both, on such terms and conditions,
consistent with the Plan's purpose, different from those specified in the Plan
as may, in the judgment of the Committee, be necessary or desirable to create
equitable opportunities given differences in tax laws in other
countries.

    

    11.6           In
addition to such other rights of indemnification as they may have as members of
the Board or the Committee, the members of the Committee shall be indemnified by
the Company against all costs and expenses reasonably incurred by them in
connection with any action, suit or proceeding to which they or any of them may
be party by reason of any action taken or failure to act under or in connection
with the Plan or any Stock Option granted thereunder, and against all amounts
paid by them in settlement thereof (provided such settlement is approved by
independent legal counsel selected by the Company) or paid by them in
satisfaction of a judgment in any such action, suit or proceeding, except a
judgment based upon a finding of bad faith;  provided that upon the
institution of any such action, suit or proceeding a Committee member shall, in
writing, give the Company notice thereof and an opportunity, at its own expense,
to handle and defend the same, with counsel acceptable to the
Optionee,  before such Committee member undertakes to handle and
defend it on his own behalf.

    

    11.7           Stock
Options may be granted under this Plan from time to time, in substitution for
stock options held by employees of other corporations who are about to become
employees of the Company as the result of a merger or consolidation of the
employing corporation with the Company or the acquisition by the Company of the
assets of the employing corporation or the acquisition by the Company of stock
of the employing corporation as a result of which it becomes a subsidiary of the
Company.  The terms and conditions of such substitute stock options so
granted may vary from the terms and conditions set forth in this Plan to such
extent as the Board of Directors of the Company at the time of grant may deem
appropriate to conform, in whole or in part, to the provisions of the stock
options in substitution for which they are granted, but no such variations shall
be such as to affect the status of any such substitute stock options as a stock
option under Section 422A of the Code.

    

    11.8           Notwithstanding
anything to the contrary in the Plan, if the Committee finds by a majority vote,
after full consideration of the facts presented on behalf of both the Company
and the Optionee, that the Optionee has been engaged in fraud, embezzlement,
theft, insider trading in the Company's stock, commission of a felony or proven
dishonesty in the course of his association with the Company or any subsidiary
corporation which damaged the Company or any subsidiary corporation, or for
disclosing trade secrets of the Company or any subsidiary corporation, the
Optionee shall forfeit all unexercised Stock Options and all exercised NQSO's
under which the Company has not yet delivered the certificates and which have
been earlier granted to the Optionee by the Committee.  The decision
of the Committee as to the cause of an Optionee's discharge and the damage done
to the Company shall be final.  No decision of the Committee, however,
shall affect the finality of the discharge of such Optionee by the Company or
any subsidiary corporation in any manner.

     

    12.           Written Agreement

    

    12.1           Each
Stock Option granted hereunder shall be embodied in a written Stock Option
Agreement which shall be subject to the terms and conditions prescribed above
and shall be signed by the Optionee and by the President or any Vice President
of the Company, for and in the name and on behalf of the
Company.  Such Stock Option Agreement shall contain such other
provisions as the Committee, in its discretion shall deem
advisable.

    
      
         

      

      
        10

        
          

        

      

      
         

        2007
NON-QUALIFIED STOCK COMPENSATION PLAN - continued

      

    

    ATTACHMENT
A

    

    FORM
OF STOCK OPTION AGREEMENT

    

    

    
      	
              Number
      of Shares: __________________

            	
              Date
      of Grant:______________

            

    

    

    FORM OF
NON-QUALIFIED STOCK OPTION AGREEMENT

    

    AGREEMENT made this _______ day of _________________________ 200__ , between (the “Optionee”), and
CRC Crystal Research
Corporation. (the “Company”).

    

    1.            
Grant of
Option

    

    The
Company, pursuant to the provisions of the Non-Qualified Stock Compensation Plan
(the “Plan”), adopted by the Board of Directors on December 1, 2007, the Company
hereby grants to the Optionee, subject to the terms and conditions set forth or
incorporated herein, an option to purchase from the Company all or any part of
an aggregate of  shares of its $.001 par value common stock, as such
common stock is now constituted, at the purchase price of $.__ per
share.  The provisions of the Plan governing the terms and conditions
of the Option granted hereby are incorporated in full herein by
reference.

    

    2.            
Exercise

    

    The
Option evidenced hereby shall be exercisable in whole or in part on or after and
on or before, provided that the cumulative number of shares of common stock as
to which this Option may be exercised (except in the event of death, retirement,
or permanent and total disability, as provided in paragraph 6.9 of the Plan)
shall not exceed the following amounts:

     

    
    

     

    
      	
              Cumulative
      Number  

            	 	
              Prior to
      Date

            
	
              of
      Shares

            	 	
              (Note Inclusive
      of)

            

    

     

    
 

    The
Option evidenced hereby shall be exercisable by the delivery to and receipt by
the Company of (i)  written notice of election to exercise, in the
form set forth in Attachment B hereto, specifying the number of shares to be
purchased;  (ii)  accompanied by payment of the full
purchase price thereof in cash or certified check payable to the order of the
Company, or by fully paid and nonassessable common stock of the Company properly
endorsed over to the Company, or by a combination thereof,
and  (iii)  by return of this Stock Option Agreement for
endorsement of exercise by the Company on Schedule I hereof.  In the
event fully paid and nonassessable common stock is submitted as whole or partial
payment for shares to be purchased hereunder, such common stock will be valued
at their Fair Market Value (as defined in the Plan) on the date such shares
received by the Company are applied to payment of the exercise
price.

    
      
         

      

      
        A-1

        
          

        

      

      
         

        2007
NON-QUALIFIED STOCK COMPENSATION PLAN - continued

      

    

     

    3.            
Transferability

    

    The
Option evidenced hereby is not assignable or transferable by the Optionee other
than by the Optionee's will or by the laws of descent and distribution, as
provided in paragraph 6.9 of the Plan.  The Option shall be
exercisable only by the Optionee during his lifetime.

     

    
      
        	 	CRC
      Crystal Research Corporation	 
	 	 	 	 
	 	By:	 	 
	 	Name:	 	 
	 	Title:	 	 
	ATTEST:	 	 	 
	 	 	 	 
	 	 	 	 
	Secretary	 	 	 

      

    

    

 

    Optionee hereby acknowledges receipt of
a copy of the Plan, attached hereto and accepts this Option subject to each and
every term and provision of such Plan.  Optionee hereby agrees to
accept as binding, conclusive and final, all decisions or interpretations of the
of the Board of Directors administering the Plan on any questions arising under
such Plan.  Optionee recognizes that if Optionee's employment with the
Company or any subsidiary thereof shall be terminated without cause, or by the
Optionee, prior to completion or satisfactory performance by Optionee (except as
otherwise provided in paragraph 6 of the Plan) all of the Optionee's rights
hereunder shall thereupon terminate; and that, pursuant to paragraph 6 of the
Plan, this Option may not be exercised while there is outstanding to Optionee
any unexercised Stock Option granted to Optionee before the date of grant of
this Option.

     

    

     

    
      	Dated: __________	 
	 	Optionee
	 	 
	 	 
	 	Print
  Name
	 	 
	 	 
	 	Address
	 	 
	 	 
	 	Social Security
      No.

    

     

    
      
         

      

      
        A-2

        
          

        

      

      
         

        2007
NON-QUALIFIED STOCK COMPENSATION PLAN - continued

      

    

    ATTACHMENT
B

    

    NOTICE
OF EXERCISE

    

    

    To:           CRC
Crystal Research Corporation

    

    

    

    (1)           The
undersigned hereby elects to purchase ________ shares of Common Shares (the
“Common Shares”), of CRC Crystal Research Corporation. pursuant to the terms of
the attached Non-Qualified Stock Option Agreement, and tenders herewith payment
of the exercise price in full, together with all applicable transfer taxes, if
any.

     

    (2)           Please
issue a certificate or certificates representing said shares of Common Shares in
the name of the undersigned or in such other name as is specified
below:

     

    

    _______________________________

    (Name)

    

    _______________________________

    (Address)

    _______________________________

    

    

    

    

    Dated:
_________________________

    

    

    ______________________________

    Signature

    

    Optionee: _________________________________ 
Date of Grant: __________________________________

    

    

    

    

    

    

    

    

    
      
         

      

      
        B-1

        
          

        

      

      
         

        2007
NON-QUALIFIED STOCK COMPENSATION PLAN - continued

      

    

    

    SCHEDULE
I

    

    

    
      	
              DATE

            	
              SHARES
      PURCHASED

            	
              PAYMENT
      RECEIVED

            	
              UNEXERCISED

              SHARES

              REMAINING

            	
              ISSUING

              OFFICER

              INITIALS

            
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      

    

    

    
 

     I-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}]]