Document:

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                        MATERIAL CONTRACTS - EXHIBIT 10C

                              THOR INDUSTRIES, INC.
                         SELECT EXECUTIVE INCENTIVE PLAN

                          EFFECTIVE SEPTEMBER 29, 1997

Thor Industries, Inc.
419 West Pike Street
Jackson Center, Ohio   45334

SECTION 1. PURPOSE.
-------------------

         1.1. THOR Industries, Inc., a Delaware corporation, (the "Company"),
hereby establishes this THOR Industries, Inc. Select Executive Incentive Plan
(the "Plan") for the purpose of providing its eligible executives with
supplemental deferred compensation in addition to the current compensation
earned under the Company's Management Incentive Plan ("MIP"). It is intended
that the Plan shall constitute an unfunded deferred compensation arrangement for
the benefit of a select group of management or highly compensated employees of
the Company and its designated subsidiaries and affiliates for purposes of the
federal income tax laws and the Employee Retirement Income Security Act of 1974
("ERISA") and all documents, agreements or instruments made or given pursuant to
the Plan shall be interpreted so as to effect such intent.

SECTION 2. ELIGIBILITY.
-----------------------

         2.1. ELIGIBLE EXECUTIVES. Each employee of the Company or member of the
board of directors, who is designated by the Compensation Committee of the board
of directors of the Company (the "Compensation Committee") as an eligible
executive (the "Eligible Executive") shall participate in the Plan effective as
of the later of the following:

         (a) The date determined by the Compensation Committee.

         (b) The date the Eligible Executive is formally notified that the
Eligible Executive is a participant.

         2.2. DESIGNATED SUBSIDIARIES AND AFFILIATES. For purposes of this Plan,
the term "Company" shall include any subsidiary or affiliate of the Company
which is designated by the Compensation Committee as an employer whose
executives will be eligible to participate in this Plan.

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                                            THOR SELECT EXECUTIVE INCENTIVE PLAN

SECTION 3.   DEFERRED COMPENSATION AMOUNTS.
-------------------------------------------

         3.1. DEFERRED COMPENSATION CREDITS. For each Plan year of
participation, an Eligible Executive employed by the Company shall be credited
with the amount(s), if any, determined by the Compensation Committee. The amount
to be credited to any Eligible Executive shall be determined in the sole
discretion of the Compensation Committee, and may be $0 for any Plan year.

         3.2. TIMING OF DEFERRED COMPENSATION CREDITS. The Company may, in its
sole discretion, determine the date or dates that the deferred compensation
amounts shall be credited to the Eligible Executives' accounts.

         3.3. MID-YEAR PARTICIPATION. If an Eligible Executive becomes a
participant during the year, the Company may, in its sole discretion, credit
pro-rata amounts to the Eligible Executive.

SECTION 4.  CREDITING OF DEFERRED COMPENSATION.
-----------------------------------------------

         4.1. ACCOUNT FOR PARTICIPANT. All amounts determined pursuant to
Section 3 shall be credited to an account for such Eligible Executive. Such
accounts shall also be credited with earnings and losses in accordance with
Section 5. The amount to be paid to an Eligible Executive from the Plan in
accordance with Section 7 shall be based on an amount equal to the Vested
Balance of the Eligible Executive's account, as determined under Section 6, at
the time of payment.

SECTION 5.  INVESTMENT CREDIT.
------------------------------

         5.1. CREDIT BASED ON INDEX FUNDS. Subject to Section 5.2, any Company
contributions pursuant to Section 4.1, shall be credited with earnings as if the
amounts were invested in specific investment funds selected by the
Administrative Committee (index funds). The Administrative Committee, in its
sole discretion, may establish a procedure allowing any Eligible Executive to
request that earnings be credited for his or her account with respect to the
results of one or more of the index funds selected by the Administrative
Committee, and the basis upon which such earnings credits shall be determined.
The procedure may specify the frequency with which Eligible Executives may
change their investment index requests. If the Eligible Executive fails to
request one or more of the index funds, a default index fund, as selected by the
Administrative Committee, will provide the earnings credits.

         5.2. COMPANY DISCRETION TO FOLLOW INSTRUCTIONS. The Administrative
Committee shall not be obligated to comply

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                                            THOR SELECT EXECUTIVE INCENTIVE PLAN

with, nor be liable for any failure to comply with, the investment request of
any Eligible Executive. The Administrative Committee shall have sole discretion
whether or not to credit earnings with regard to the results of one or more of
the index funds to the account of any Eligible Executive in the manner requested
by the Eligible Executive under this Section 5.

         5.3. INFORMAL FUNDING. The Company may informally fund its obligations
under the Plan in any manner that it chooses and shall not be required to invest
any amounts in any particular investment, including any index fund. The Company
may, without limitation, purchase life insurance or any security or other
property to fund its obligations under the Plan.

SECTION 6.  VESTING OF ACCOUNT BALANCE.
---------------------------------------

         6.1. VESTED BALANCE. The amount payable to the Eligible Executive at
any time shall be equal to the vested portion of the Eligible Executives account
(the "Vested Balance"). The Vested Balance at any time shall be equal to the
Eligible Executive's account balance multiplied by the Vesting Percentage
determined under Section 6.2 and further reduced by the non-competition
forfeiture determined under Section 6.3, if any.

         6.2. VESTING PERCENTAGES. The Eligible Executive's account balance
shall be vested based upon the Eligible Executive's plan years of participation,
as follows:

                    COMPLETED PLAN YEARS               VESTING PERCENTAGE
                    --------------------               ------------------
                    Less than six                      0%
                    Six or more                        100%

         Provided that the Vesting Percentage shall be 100% for any participant
who attains age 65 or dies.

         6.3. NON-COMPETE AND FORFEITURE.

         (a) NON-COMPETE, NON-SOLICITATION AND NON-DISCLOSURE FORFEITURE. If,
during the Eligible Executive's participation in this Plan, and for a period of
eighteen (18) months after termination of employment with the Company for any
reason, the Eligible Executive competes with the Company (as defined in Section
6.3(b)), or violates the non-solicitation or non-disclosure provisions of 6.3(b)
hereof, the Eligible Executive shall forfeit one-hundred percent (100%) of his
or her Vested Balance under the Plan.

         (b) NON-COMPETITION DEFINITION. For purposes of this Plan, the Eligible
Executive shall be deemed to have competed with the Company if, in the sole
discretion of the Compensation Committee, the Eligible Executive, within the
United States or Canada, directly or indirectly, (1) owns (as a proprietor,
partner, shareholder, or

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                                            THOR SELECT EXECUTIVE INCENTIVE PLAN

otherwise) an interest in, or (2) participates (as an officer, director, or in
any other capacity) in the management, operation, or control of, or (3) performs
services as or acts in the capacity of an employee, independent contractor,
consultant, or agent of, any enterprise engaged, directly or indirectly, in the
business of production and/or marketing recreation vehicles and buses by the
Company except with prior written consent of the Company. The Eligible Executive
will not, directly or indirectly, employ or solicit the employment by any
employee of the Company who was such an employee at the time of termination of
the Eligible Executive's employment hereunder or within six (6) months prior
thereto, nor will the Eligible Executive disclose to any third party any
confidential matter not readily available to the public.

         (c) ADDITIONAL FORFEITURE PROVISIONS. The Eligible Executive may, in
the sole discretion of the Compensation Committee, forfeit his or her entire
Vested Balance under the Plan if convicted or plead guilty in a court involving
a felony or misdemeanor relating to the Company or its business or which
negatively affects the Company's reputation. In addition, the Compensation
Committee may cause the forfeiture of the Vested Balance if it is determined by
a court that the Eligible Executive has breached his or her fiduciary duty to
the Company.

SECTION 7. PAYMENT OF DEFERRED COMPENSATION.
--------------------------------------------

         7.1. PAYOUT ELECTION. At the time an Eligible Executive first
participates in the Plan, such participant shall file a Payout Election Form
designating the form in which payment of benefits shall be made following
termination of employment. Such election shall apply to the Eligible Executive's
entire Vested Balance. Payment shall be made in a lump sum unless the
participant requests one of the following forms, as specified in the Payout
Election Form:

                  (a) Substantially equal annual installments for five years.

                  (b) Substantially equal annual installments for ten years.

                  (c) Any other actuarially equivalent form of payment that the
Administrative Committee may approve.

         7.2. CHANGE IN FORM OF PAYMENT. An Eligible Executive may change the
form of payment specified in the Payout Election Form by submitting to the
Administrative Committee an amended Payout Election Form that adequately
identifies the Payout Election Form that is to be changed and specifies the form
of payment, as amended. To be effective, the amended Payout Election Form must
be received by the Administrative Committee at least twelve (12) months before
the date of termination of employment. Payment dates may not be changed.

         7.3. PAYMENT TO EXECUTIVE. Except as provided in Sections 6.3(c), 7.4,
7.6 and 8, the Vested Balance of an Eligible Executive's account under the Plan
shall be paid after

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the end of the eighteenth (18th) complete calendar month following the Eligible
Executive's termination of employment with the Company.

         7.4. HARDSHIP WITHDRAWALS. The Administrative Committee may, in its
sole discretion, allow an Eligible Executive to be paid an amount equal to all
or any portion of the Eligible Executive's Vested Balance in the event of an
unforeseen emergency caused by an event beyond the control of the Eligible
Executive that would result in severe financial hardship to the Eligible
Executive, such as the following:

                  (a) Illness or accident of the Eligible Executive or a
dependent under Internal Revenue Code section 152(a).

                  (b) Loss of the Eligible Executive's property due to casualty.

                  (c) Other similar extraordinary and unforeseeable
circumstances arising as a result of events beyond the control of the
Eligible Executive.

         The payment will be limited to the amount necessary to meet such
unforeseen emergency. Financial hardship and the amount necessary to meet the
emergency will take into consideration all available assets of the Eligible
Executive, including but not limited to, assets that can be liquidated,
available credit, insurance and other reimbursements, and termination of
deferral of compensation to the extent allowable. Payments to the Eligible
Executive under this Section 7.4 shall reduce the Eligible Executive's account
balance under the Plan.

         7.5. DISABILITY. An Eligible Executive who becomes temporarily disabled
while employed or becomes eligible to receive long-term disability benefits
under a plan maintained by the Company shall be treated as employed, and no
payments will be made under this Plan under elections to receive benefits at
termination of employment. If disability benefits stop and disability continues
the Eligible Executive shall be treated as terminated.

         7.6. DEFERMENT IN CASE OF NON-DEDUCTIBILITY. To the extent that the
payment of all or a portion of an Eligible Executive's account would not be
deductible by the Company for federal income tax purposes, the Company may defer
payment of all or a portion of the account to the earliest one or more
subsequent calendar years in which the payment of such amounts would be
deductible by the Company. Deductibility shall not be determined by whether or
not the Company would receive any benefit from the deduction.

         7.7. INCAPACITY. If the Administrative Committee finds that any person
to whom any amount is payable hereunder is unable to care for his or her affairs
because of illness or accident, then the Administrative Committee, if it so
elects, may direct that any payment due him or her (unless a prior claim
therefore has been made by a duly appointed legal representative) or any part
thereof, be paid or applied for the benefit of

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such person (or such person's spouse, children or other dependents), to an
institution maintaining or having custody of such person, or any other person
deemed by the Administrative Committee to be a proper recipient on behalf of
such person otherwise entitled to payment, or any of them, in such manner and
proportion as the Administrative Committee may deem proper. Any such payment
shall be in complete discharge of the Company's obligations under this Plan.

         7.8 TERMINATION OF DIRECTORS. For Eligible Executives who participate
in the Plan as directors instead of as employees, references to termination of
employment shall mean termination as a director.

SECTION 8. PAYMENT TO BENEFICIARY OR REPRESENTATIVE.
----------------------------------------------------

         8.1. If the Eligible Executive dies before receiving all of his or her
Vested Balance, the Company shall pay the remaining balance to the beneficiary
most recently designated by the Eligible Executive (or, if no such beneficiary
shall survive the Eligible Executive or if no beneficiary has been designated,
to the beneficiary designated by the Eligible Executive under the Company's
group term life insurance plan, or if no such beneficiary has been designated
under the group term life insurance plan, to the Eligible Executive's estate)
either by payment of one lump sum or by continuing the schedule of payments in
effect at death, as the Administrative Committee in its sole discretion shall
determine. The provisions of 7.6 shall apply.

SECTION 9. ADMINISTRATION.
--------------------------

         9.1. ADMINISTRATION OF THE PLAN. The Plan shall be administered by an
Administrative Committee (the "Administrative Committee") which shall be
appointed by the Compensation Committee. The Administrative Committee shall have
full power, discretion and authority to interpret, construe and administer this
Plan and any part hereof, and the Administrative Committee's interpretation and
construction thereof, and actions hereunder, shall be binding and conclusive on
all persons for all purposes. The Administrative Committee may employ legal
counsel, consultants, actuaries and agents as it may deem desirable in the
administration of the Plan and may rely on the opinion of such counsel or the
computations of such consultant or other agent. The Administrative Committee
shall provide for the keeping of written minutes of its actions hereunder.

         9.2. PARTICIPANT STATEMENTS. The Administrative Committee shall provide
to each Eligible Executive, at least annually, a statement setting forth the
balance to the credit of the account of such Eligible Executive. Such statement
shall be provided no later than 60 days following the end of each Plan year.

         9.3. PLAN YEAR. This Plan shall be administered on an annual basis. The
Plan year shall begin August 1 and end July 31 of the subsequent calendar year.

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SECTION 10. CLAIMS PROCEDURE.
-----------------------------

         10.1. REQUEST. Any person claiming a benefit under the Plan, requesting
an interpretation or ruling under the Plan, or requesting information under the
Plan shall present the request in writing to the Administrative Committee. The
Chair of the Administrative Committee shall respond in writing as soon as
practicable.

         10.2. DENIAL. If the claim or request is denied, the written notice of
denial shall state:

                  (a) The reasons for denial, with specific reference to the
Plan provisions on which the denial is based.

                  (b) A description of any additional material or information
required and an explanation of why it is necessary.

                  (c) An explanation of the Plan's claim review procedure.

         The initial notice of denial shall normally be given within 90 days
after receipt of the claim. If special circumstances require an extension of
time, the claimant shall be so notified and the time limit shall be 180 days.

         10.3. REVIEW OF DECISION. Any person whose claim or request is denied
or who has not received a response within 30 days may request review by notice
in writing to the full Administrative Committee. The original decision shall be
reviewed by the Administrative Committee. The Administrative Committee may, but
shall not be required to, grant the claimant a hearing. On review, whether or
not there is a hearing, the claimant may have representation, examine pertinent
documents and submit issues and comments in writing. The decision on review
ordinarily shall be made within 60 days. If an extension of time is required for
a hearing or other special circumstances, the claimant shall be so notified and
the time limit shall be 120 days. The decision shall be in writing and shall
state the reasons and the relevant Plan provisions. All decisions on review
shall be final and bind all parties concerned.

SECTION 11. TRUST; UNSECURED GENERAL CREDITOR.
----------------------------------------------

         11.1. TRUST. The Company may establish a trust with a financial
institution for payment of benefits under this Plan. The trust shall be a
grantor trust for tax purposes. The trust shall provide that any assets
contributed to the trustee shall be used exclusively for payment of benefits
under this Plan except in the event the Company becomes insolvent. In the event
of insolvency, the trust fund shall be available for payment of obligations of
the Company to its creditors.

         11.2. PAYMENT OTHER THAN FROM TRUST. Except as provided in Section
11.1, any amounts payable under this Plan shall be paid in cash from the general
funds of the Company. The Eligible Executive and any beneficiary shall have no
right, title or interest

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whatever in or to any investment which the Company may make to aid it in meeting
its obligation hereunder or to any assets of the Company. Nothing contained in
this Plan, and no action taken pursuant to the Plan provisions, shall create or
be construed to create a fiduciary relationship between the Company and the
Eligible Executive or a beneficiary.

         11.3. UNSECURED CREDITOR. To the extent that any person acquires a
right to receive payments from the Company hereunder such right shall be no
greater than the right of an unsecured creditor of the Company. Rights to
benefit payments under the Plan are not subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance, attachment or
garnishment by creditors of the Eligible Executive or of the Eligible
Executive's beneficiaries. It is the intention of the Company that the Plan be
unfunded for tax purposes and for purposes of Title I of ERISA.

SECTION 12. WITHHOLDING.
------------------------

         12.1. WITHHOLDING OF PLAN BENEFITS. The Company shall withhold, or
cause to be withheld, from any benefits payable under this Plan all Federal,
state, city or other taxes as required pursuant to any law or governmental
regulation or ruling.

         12.2. WITHHOLDING ON AMOUNTS CREDITED. The Company shall withhold from
current compensation to the Eligible Executive amounts required to be withheld
pursuant to applicable law in respect of amounts credited to the Eligible
Executive under this Plan.

SECTION 13. EMPLOYMENT AND BENEFITS RIGHTS.
-------------------------------------------

         13.1. EFFECT ON OTHER PLANS. Any benefit payable under this Plan shall
not be deemed salary or other compensation for the purpose of computing benefits
under any employee benefit plan or other arrangement of the Company for the
benefit of its employees or directors except to the extent otherwise provided in
such plan or arrangement or required to comply with laws applicable to such plan
or arrangement.

         13.2. NOT A CONTRACT OF EMPLOYMENT. This Plan is not a contract of
employment and shall not affect any employment rights of the Eligible Executive
or the right or ability of the Company to terminate the Eligible Executive's
employment with or without cause.

         13.3. OTHER BENEFITS. This Plan shall be in addition to any rights of
the Eligible Executive under any other agreement with the Company, if any, and
shall not affect or reduce any benefit or compensation inuring to the Eligible
Executive of a kind not expressly provided for in this Plan.

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SECTION 14. BINDING EFFECT: NONASSIGNABILITY.
---------------------------------------------

         14.1. This Plan shall be binding upon and inure to the benefit of the
Company and its successors and assigns and the Eligible Executive and the
Eligible Executive's designees and estate. Neither the Eligible Executive nor
the Eligible Executive's designees or estate shall commute, encumber, sell or
otherwise dispose of the right to receive the payments provided for in this
Plan, which payments and the rights thereto are expressly declared to be
nontransferable and nonassignable.

SECTION 15. AMENDMENT.
----------------------

         15.1. This Plan may be amended, suspended or terminated, in whole or in
part, by the Board of Directors of the Company, but no such action shall
retroactively impair or otherwise adversely affect the rights of any person to
benefits under this Plan which have accrued prior to the date of such action, as
determined by the Administrative Committee. Any amendment which materially
impairs or otherwise adversely affects the prospective rights of any person to
benefits under this Plan shall be effective only for calendar years which follow
the year in which notice to Eligible Executives is given.

SECTION 16. GOVERNING LAW.
--------------------------

         16.1. This Plan shall be governed by the laws of the State of Delaware
from time to time in effect.

SECTION 17. MISCELLANEOUS.
--------------------------

         17.1. The captions preceding the Sections hereof have been inserted
solely as a matter of convenience and in no way define or limit the scope or
intent of any provision hereof.

         Executed on behalf of the Company, effective as of the date first
written above.

                                     THOR INDUSTRIES, INC.
                                     By: /s/ Wade F.B. Thompson
                                         -----------------------------------
                                     Title: Pres
                                            ------------------------------
                                     Date:  10/6/97
                                            ------------------------------

                                       9Exhibit 4.10

THE OPTION REPRESENTED BY THIS CERTIFICATE AND THE SHARES OF COMMON STOCK
ISSUABLE UPON THE EXERCISE OF THE OPTION HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR REGISTERED OR QUALIFIED UNDER
THE SECURITIES LAWS OF ANY STATE AND THUS MAY NOT BE OFFERED, SOLD OR OTHERWISE
TRANSFERRED UNLESS REGISTERED UNDER THAT ACT AND REGISTERED OR QUALIFIED UNDER
APPLICABLE SECURITIES LAW OR UNLESS AN EXEMPTION FROM SUCH REGISTRATION OR
QUALIFICATION IS AVAILABLE.

                OPTION TO PURCHASE 200,000 SHARES OF COMMON STOCK
                                       OF
                      POLLUTION RESEARCH AND CONTROL CORP.
                                FROM MAY 15, 1998
             VOID AFTER 5:00 P.M., LOS ANGELES TIME, ON MAY 15, 2001

     This certifies that Phoenix Alliance, Inc., or registered assigns, is
entitled, subject to the terms set forth below, to purchase from Pollution
Research and Control Corp., a California corporation (the "Company"), the above
number of fully-paid and nonassessable shares of Common Stock of the Company
("Common Stock") at a purchase price of fifty-five cents ($.55) per share
("Purchase Price").

     This Option is exercisable at any time to and including 5:00 p.m., Los
Angeles time, on May 15, 2001.

Registered Owner: Phoenix Alliance, Inc.

Purchase Price:   $.55

<PAGE>

                                OPTION AGREEMENT

     This Option Agreement (the "Agreement") is made and entered into effective
as of May 15, 1998 by and between Pollution Research and Control Corp., a
California corporation ("PRCC") and Phoenix Alliance, Inc. ("Optionee").

     WHEREAS, Optionee has been providing valuable services as recognized by the
Company's Board of Directors to PRCC and PRCC is desirous of having Optionee
continue to provide such services to it; and

     WHEREAS, PRCC is willing to grant Optionee an option to purchase up to an
aggregate of 200,000 shares of the no par value common stock of PRCC (the
"Common Stock") under the terms and conditions set forth below.

     NOW, THEREFORE, the parties agree as follows:

     1. Grant of Option. PRCC hereby grants to Optionee, as a matter of separate
agreement and not in lieu of other compensation for services, the right and
option (the "Option") to purchase on the terms and conditions set forth in this
Agreement all or any part of up to an aggregate of 200,000 shares of Common
Stock (the "Option Shares").

     2. Option Price. At any time when shares of Common Stock are to be
purchased pursuant to the Option, the purchase price for each Option share shall
be fifty-five cents ($.55) ("Option Price"), and for purposes of record, the bid
price of the Company's stock on this date was $.55.

     3. Option Period. The option period shall commence on May 15, 1998 and
shall terminate on May 15, 2001.

     4. Exercise of Option. The Option may be exercised in whole or in part at
any time after the date hereof by delivering to the Chief Financial Officer of
PRCC (a) a Notice and Agreement of Exercise of Option, substantially in the form
attached hereto as Exhibit "A," specifying the number of Option Shares with
respect to which the Option is exercised, and (b) full payment of the Option
Price for such Shares.

     5. Securities Laws Requirements. The Option Shares have not been registered
under the Securities Act of 1933, as amended (the "Act"), and no Shares may be
sold, offered for sale, transferred, pledged, hypothecated or otherwise disposed
of except in compliance with the Act and any other applicable federal and state
securities laws. Additionally, the Option and the Option Shares have not been
qualified under the California Securities Law of 1968, as amended (the
"California Law"). PRCC has no obligation to register the Option Shares under
the Act or qualify the Option Shares under the California Law. Optionee
acknowledges that it is aware that Rule 144 of the General Rules and Regulations
under the Act ("Rule 144") affords a limited exemption from registration for the

<PAGE>

public resale of registered securities and under the terms of Rule 144 as
currently in effect, the Shares received by Optionee may be sold to the public
without registration only after a period of two (2) years has elapsed from the
exercise date of the Option and then only in compliance with all other
requirements of Rule 144 and the Act. Optionee hereby acknowledges, represents,
warrants and agrees as follows:

        (a) That the Option and the Option Shares are not registered under the
Act or qualified under the California Law, and the Option Shares shall be
acquired solely for the account of Optionee for investment purposes only and
with no view to their resale or other distribution of any kind;

        (b) Neither the Option nor any Option Share shall be sold or otherwise
distributed in violation of the Act, the California Law or any other applicable
federal or state securities law;

        (c) Its overall commitment to investments that are not readily
marketable is not disproportionate to its net worth, and its investment in PRCC
will not cause such overall commitment to become excessive;

        (d) It has the financial ability to bear the economic risk of its
investment, has adequate means of providing for its current needs and personal
contingencies, and has no need for liquidity in its investment in PRCC;

        (e) It either: (i) has a preexisting personal or business relationship
with PRCC or its officers, directors or controlling persons, or (ii) has
evaluated the business of PRCC and the high risks of investing in PRCC, the
competitive nature of the business in which PRCC is engaged, and has the
business or financial experience or has business or financial advisors who are
unaffiliated with, and not compensated by, PRCC and protect its interests in
connection with the transaction;

        (f) It has been given the opportunity to review all books, records and
documents of PRCC and to ask questions and receive answers from PRCC concerning
PRCC's business, to obtain additional information necessary to verify the
accuracy of the information it has desired in order to evaluate its investment,
and to consult with such attorneys, accountants and other advisors as it has
desired;

        (g) Its residence set forth below is its true and correct residence, and
it has no present intention of becoming a resident or domiciliary of any other
state of jurisdiction;

        (h) In making the decision to accept the Option and/or purchase the
Option Shares, it has relied solely upon independent investigations made by or
on behalf of it;

        (i) No federal or state agency has made any finding or determination as
to the fairness of an investment in PRCC; and

        (j) It understands that all the representations and warranties made by
it herein, and all information furnished by it to PRCC, is true, correct and
complete in all respects.

<PAGE>

     6. Optionee hereby acknowledges that it understands the meaning and legal
consequences of the representations, warranties and covenants contained herein
and that PRCC has relied on the representations made by Optionee in paragraph 5
hereof in granting this Option, and Optionee agrees to indemnify and hold
harmless PRCC and its officers, directors, controlling persons, attorneys,
agents and employees from and against any and all loss, damage or liability,
together with all costs and expenses (including attorneys' fees and
disbursements) which any of them may incur by reason of any breach and any
representation, warranty, covenant or agreement contained herein. All
representations, warranties, covenants and agreements, and the indemnification
contained herein, shall survive the grant of the Option and the issuance of the
Option Shares by PRCC.

     7. Legend on Certificates. All Option Shares issued pursuant to this
Agreement shall be subject to the provisions of this Agreement and the
certificates representing such Option Shares shall bear the following legend or
language substantially equivalent thereto:

     "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
     OR QUALIFIED UNDER FEDERAL OR STATE SECURITIES LAWS. THE SHARES MAY
     NOT BE OFFERED FOR SALE, SOLD, PLEDGED OR OTHERWISE TRANSFERRED UNLESS
     SO REGISTERED OR QUALIFIED OR UNLESS AN EXEMPTION EXISTS, THE
     AVAILABILITY OF WHICH IS TO BE ESTABLISHED TO THE SATISFACTION OF THE
     COMPANY."

     8. Transferability of Option. The Option shall not be transferable except
by the laws of descent and distribution and any attempt to do so shall void the
Option.

     9. Adjustment. The Option Price and the number and kind of Option Shares
shall be subject to corresponding adjustment in the event of any change in the
Common Stock by reason of any reclassification, recapitalization, split-up,
combination, exchange of shares, readjustment or stock dividend, in like manner
as if such Option Shares had been issued and outstanding, fully-paid and
nonassessable at the time of such occurrence.

     10. Privilege of Ownership. Optionee shall not have any of the rights of a
shareholder with respect to the shares covered by the Option except to the
extent that one or more certificates for such shares shall be delivered to it
upon one (1) or more exercises of the Option.

     11. Notices. Any notices required or permitted to be given under this
Agreement shall be in writing and they shall be deemed to have been given upon
personal delivery or two (2) business days after mailing the notice by postage,
registered or certified mail. Such notice shall be addressed to the party to be
notified as shown below:

<PAGE>

     PRCC:                      POLLUTION RESEARCH AND CONTROL CORP.
                                506 Paula Avenue
                                Glendale, CA  91201
                                Attn:   President

     OPTIONEE:                  Phoenix Alliance, Inc.
                                22 Cedar Court
                                Durango, CO  81301

     Any party may change its address for purposes of this Section by giving the
other party written notice of the new address in the manner set forth above.

     12. General Provisions. This Agreement:

         (a) Contains the entire agreement between PRCC and Optionee regarding
options of PRCC to Optionee and supersedes all prior communications, oral or
written;

         (b) Shall not be construed to give Optionee any rights as to PRCC or
the Common Stock, except as specifically provided herein;

         (c) May not be amended nor may any rights hereunder be waived except by
an instrument in writing signed by the party sought to be charged with such
amendment or waiver;

         (d) Shall be construed in accordance with, and governed by, the laws of
the State of California; and

         (e) Shall be binding upon and shall inure to the benefit of PRCC and
Optionee, and their respective successors and assigns, except that Optionee
shall not have the right to assign or otherwise transfer its rights hereunder to
any person.

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the day
and year first above written.

                                    PRCC:

                                    POLLUTION  RESEARCH AND CONTROL
                                    CORP., a California corporation

                                    By:  /s/  Albert E. Gosselin
                                       -----------------------------------------
                                              Albert E. Gosselin, Jr., President
                                              and Chief Executive Officer

                                    OPTIONEE:

                                    PHOENIX ALLIANCE, INC.

                                    By:  /s/  Phillip T. Huss
                                       -----------------------------------------
                                              Phillip T. Huss

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                                    EXHIBIT A

                     To Pollution Research and Control Corp.

                   NOTICE AND AGREEMENT OF EXERCISE OF OPTION

     I hereby exercise the Option granted to me by POLLUTION RESEARCH AND
CONTROL CORP., a California corporation ("PRCC"), dated as of
____________________ as to __________ shares of PRCC's no par value Common
Stock.

     Enclosed are the documents and payment specified in Paragraph 4 of my
Agreement regarding the Option.

----------------------------------            ----------------------------------
                 (Print Your Name)                                     Signature

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