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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0001003297-08-000248.txt : 20081121
<SEC-HEADER>0001003297-08-000248.hdr.sgml : 20081121
<ACCEPTANCE-DATETIME>20081121132944
ACCESSION NUMBER:		0001003297-08-000248
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20090109
FILED AS OF DATE:		20081121
DATE AS OF CHANGE:		20081121
EFFECTIVENESS DATE:		20081121

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PRO DEX INC
		CENTRAL INDEX KEY:			0000788920
		STANDARD INDUSTRIAL CLASSIFICATION:	SURGICAL & MEDICAL INSTRUMENTS & APPARATUS [3841]
		IRS NUMBER:				841261240
		STATE OF INCORPORATION:			CO
		FISCAL YEAR END:			0608

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-14942
		FILM NUMBER:		081206542

	BUSINESS ADDRESS:	
		STREET 1:		2361 MCGAW AVENUE
		CITY:			IRVINE
		STATE:			CA
		ZIP:			92614
		BUSINESS PHONE:		949-769-3200

	MAIL ADDRESS:	
		STREET 1:		2361 MCGAW AVENUE
		CITY:			IRVINE
		STATE:			CA
		ZIP:			92614
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>espdexproxy.htm
<TEXT>
<html>

<head>
<!-- Document Prepared With EDGARSTAR Software-->
<!-- Copyright 2007 EDGARSTAR TRADEMARK-->
<!-- All rights reserved EDGAR2.com -->



<title>Pro-Dex, Inc. DEF-14A</title>



</head>

<body lang=EN-US link=blue vlink=purple>

<div style='page:Section1;'>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";font-weight:bold;'><a name="_DV_M0">
<font size="3"></font></a></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<table border="0" width="100%" style="border-left-width: 0px; border-right-width: 0px; border-bottom-width: 0px" id="table11" cellspacing="0" cellpadding="0">
	<tr>
		<td valign="top" colspan="3">

		<div style="border-top: 1px solid #000000">
			<p style='mso-style-name:"Center Bold\&#039;,cb; text-align: center; page-break-after: avoid; text-autospace: none; font-family: Times New Roman&#039;,serif";margin-top:0;margin-bottom:0in;margin-bottom:0;font-weight:bold' align="center">&nbsp; </p>
			<p style='mso-style-name:"Center Bold\&#039;,cb; text-align: center; page-break-after: avoid; text-autospace: none; font-family: Times New Roman&#039;,serif";margin-top:0;margin-bottom:0in;margin-bottom:0;font-weight:bold' align="center">SCHEDULE 14A INFORMATION</p>

		</div>
		</td>
	</tr>
	<tr>
		<td valign="top" colspan="3">

&nbsp;
		</td>
	</tr>
	<tr>
		<td valign="top" width="3%">
		<p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
		<td colspan="2" valign="top">

<p style='mso-style-name:"Center Bold\&#039;,cb; text-align: center; page-break-after: avoid; text-autospace: none; font-family: Times New Roman&#039;,serif";margin-top:0;margin-bottom:0in;margin-bottom:0;font-weight:bold' align="center">Proxy Statement Pursuant to Section
14(a) of the Securities Exchange Act of 1934 </p>

		</td>
	</tr>
	<tr>
		<td valign="top" width="3%">
		&nbsp;</td>
		<td colspan="2" valign="top">

&nbsp;

		</td>
	</tr>
	<tr>
		<td colspan="3" valign="top">

<p style='mso-style-name:"Flush Left\&#039;,fl; text-align: justify; text-autospace: none; font-family: Times New Roman&#039;,serif";margin-top:0;margin-bottom:0in;margin-bottom:0;'>Filed by the Registrant
<font face="Wingdings">x</font></p>

		</td>
	</tr>
	<tr>
		<td colspan="3" valign="top">

<p style='mso-style-name:"Flush Left\&#039;,fl; text-align: justify; text-autospace: none; font-family: Times New Roman&#039;,serif";margin-top:12.0pt;margin-bottom:0in;margin-bottom:0;margin-top:0'>Filed by a Party
other than the Registrant <font face="Wingdings">&#168;</font></p>

		</td>
	</tr>
	<tr>
		<td colspan="3" valign="top">

&nbsp;

		</td>
	</tr>
	<tr>
		<td colspan="3" valign="top">

<p style='mso-style-name:"Flush Left\&#039;,fl; text-align: justify; text-autospace: none; font-family: Times New Roman&#039;,serif";margin-top:0;margin-bottom:0in;margin-bottom:0;'>Check the appropriate box:</p>

		</td>
	</tr>
	<tr>
		<td colspan="3" valign="top">

&nbsp;</td>
	</tr>
	<tr>
		<td valign="top" width="3%">
		<p style="margin-top: 0; margin-bottom: 0">
		<font face="Wingdings">&#168;</font></td>
		<td colspan="2" valign="top">

<p style='mso-style-name:"Flush Left\&#039;,fl; text-align: justify; text-autospace: none; font-family: Times New Roman&#039;,serif";margin-top:0;margin-bottom:0in;margin-bottom:0;'>Preliminary Proxy Statement</p>

		</td>
	</tr>
	<tr>
		<td valign="top" width="3%">
		<p style="margin-top: 0; margin-bottom: 0">
		<font face="Wingdings">&#168;</font></td>
		<td colspan="2" valign="top">

<p style='mso-style-name:"Flush Left\&#039;,fl; text-align: justify; text-autospace: none; font-family: Times New Roman&#039;,serif";margin-top:12.0pt;margin-bottom:0in;margin-bottom:0;margin-top:0'>Confidential, for Use of the Commission Only (as
permitted by Rule 14a-6(e)(2))</p>

		</td>
	</tr>
	<tr>
		<td valign="top" width="3%">
		<p style="margin-top: 0; margin-bottom: 0">
		<a name="_DV_C332">[x]</a></td>
		<td colspan="2" valign="top">

<p style='mso-style-name:"Flush Left\&#039;,fl; text-align: justify; text-autospace: none; font-family: Times New Roman&#039;,serif";margin-top:12.0pt;margin-bottom:0in;margin-bottom:0;margin-top:0'>Definitive Proxy Statement</p>

		</td>
	</tr>
	<tr>
		<td valign="top" width="3%">
		<p style="margin-top: 0; margin-bottom: 0">
		<font face="Wingdings">&#168;</font></td>
		<td colspan="2" valign="top">

<p style='mso-style-name:"Flush Left\&#039;,fl; text-align: justify; text-autospace: none; font-family: Times New Roman&#039;,serif";margin-top:12.0pt;margin-bottom:0in;margin-bottom:0;margin-top:0'>Definitive Additional Materials</p>

		</td>
	</tr>
	<tr>
		<td valign="top" width="3%">
		<p style="margin-top: 0; margin-bottom: 0">
		<font face="Wingdings">&#168;</font></td>
		<td colspan="2" valign="top">

<p style='mso-style-name:"Flush Left\&#039;,fl; text-align: justify; text-autospace: none; font-family: Times New Roman&#039;,serif";margin-top:12.0pt;margin-bottom:0in;margin-bottom:0;margin-top:0'>Soliciting Material Pursuant to &#61479;
240.14a-11(c) or &#61479; 240.14a-12</p>

		</td>
	</tr>
	<tr>
		<td valign="top" width="3%">
		&nbsp;</td>
		<td colspan="2" valign="top">

&nbsp;

		</td>
	</tr>
	<tr>
		<td valign="top" colspan="3">
		<p align="center">PRO-DEX,
INC.</td>
	</tr>
	<tr>
		<td valign="top" style="border-bottom-style: none; border-bottom-width: medium" width="3%">
		<p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
		<td colspan="2" valign="top" style="border-bottom-style: none; border-bottom-width: medium">
		<div style="border-top: 1px solid #000000">

<p style='mso-style-name:"Center\,c";margin-top:12.0pt;margin-bottom:0in;margin-bottom:0;text-align:center;page-break-after:avoid;text-autospace:none;font-family:"Times New Roman","serif";margin-top:0'>(Name of
Registrant as Specified In Its Charter)</p>

		</div>
		</td>
	</tr>
	<tr>
		<td valign="top" style="border-bottom-style: none; border-bottom-width: medium" width="3%">&nbsp;</td>
		<td colspan="2" valign="top" style="border-bottom-style: none; border-bottom-width: medium">&nbsp; </td>
	</tr>
	<tr>
		<td valign="top" style="border-bottom-style: none; border-bottom-width: medium" colspan="3" align="center">
		<div style="border-top: 1px solid #000000">
			(Name of Person(s) Filing Proxy Statement if other than the
Registrant)</div>
		</td>
	</tr>
	<tr>
		<td valign="top" style="border-style: none; border-width: medium" width="3%">
		<p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
		<td colspan="2" valign="top" style="border-style: none; border-width: medium">&nbsp; </td>
	</tr>
	<tr>
		<td colspan="3" valign="top">

<p style='mso-style-name:"Flush Left\&#039;,fl; text-align: justify; text-autospace: none; font-family: Times New Roman&#039;,serif";margin-top:0;margin-bottom:0in;margin-bottom:0;'>Payment of Filing Fee (Check the
appropriate box):</p>

		</td>
	</tr>
	<tr>
		<td colspan="3" valign="top">

&nbsp;

		</td>
	</tr>
	<tr>
		<td valign="top" width="3%">
		<p style="margin-top: 0; margin-bottom: 0">
		<font face="Wingdings">x</font></td>
		<td colspan="2" valign="top">

<p style='mso-style-name:"Flush Left\&#039;,fl; text-align: justify; text-autospace: none; font-family: Times New Roman&#039;,serif";margin-top:0;margin-bottom:0in;margin-bottom:0;'>No fee required</p>

		</td>
	</tr>
	<tr>
		<td valign="top" width="3%">
		<p style="margin-top: 0; margin-bottom: 0">
		<font face="Wingdings">&#168;</font></td>
		<td colspan="2" valign="top">

<p style='mso-style-name:"Flush Left\&#039;,fl; text-align: justify; text-autospace: none; font-family: Times New Roman&#039;,serif";margin-top:12.0pt;margin-bottom:0in;margin-bottom:0;margin-top:0'>Fee computed on table below per Exchange Act Rules
14a-6(i)(4) and 0-11.</p>

		</td>
	</tr>
	<tr>
		<td valign="top" width="3%">
		&nbsp;</td>
		<td colspan="2" valign="top">

&nbsp;

		</td>
	</tr>
	<tr>
		<td valign="top" width="3%">
		<p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
		<td valign="top" width="3%">

<p style='mso-style-name:"Flush Left\&#039;,fl; text-align: left; text-autospace: none; font-family: Times New Roman&#039;,serif";margin-top:0;margin-bottom:0in;margin-bottom:0;'>
1.&nbsp;&nbsp; </p>

		</td>
		<td valign="top" width="94%">Title of each class of securities to which transaction
		applies:<br>
<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u>
		</td>
	</tr>
	<tr>
		<td valign="top" width="3%">
		<p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
		<td valign="top" width="3%">

<p style='mso-style-name:"Flush Left\&#039;,fl; text-align: left; text-autospace: none; font-family: Times New Roman&#039;,serif";margin-top:0;margin-bottom:0in;margin-bottom:0;'>
2.&nbsp;&nbsp; </p>

		</td>
		<td valign="top" width="94%">Aggregate number of securities to which transaction
		applies:<br>
<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u>
		</td>
	</tr>
	<tr>
		<td valign="top" width="3%">
		<p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
		<td valign="top" width="3%">

<p style='mso-style-name:"Flush Left\&#039;,fl; text-align: left; text-autospace: none; font-family: Times New Roman&#039;,serif";margin-top:0;margin-bottom:0in;margin-bottom:0;'>
3.&nbsp;&nbsp; </p>

		</td>
		<td valign="top" width="94%">Per unit price or other underlying value of transaction
		computed pursuant to Exchange Act Rule&nbsp;0-11 <br>
(set forth the amount on which the filing fee is calculated and state how it
was determined):<br>
<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u>
		</td>
	</tr>
	<tr>
		<td valign="top" width="3%">
		<p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
		<td valign="top" width="3%">

<p style='mso-style-name:"Flush Left\&#039;,fl; text-align: left; text-autospace: none; font-family: Times New Roman&#039;,serif";margin-top:0;margin-bottom:0in;margin-bottom:0;'>
4.&nbsp;&nbsp; </p>

		</td>
		<td valign="top" width="94%">Proposed maximum aggregate value of transaction:<br>
<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u>
		</td>
	</tr>
	<tr>
		<td valign="top" width="3%">
		<p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
		<td valign="top" width="3%">

<p style='mso-style-name:"Flush Left\&#039;,fl; text-align: left; text-autospace: none; font-family: Times New Roman&#039;,serif";margin-top:0;margin-bottom:0in;margin-bottom:0;'>
5.&nbsp;&nbsp; </p>

		</td>
		<td valign="top" width="94%">Total fee paid:<br>
<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u>
		</td>
	</tr>
	<tr>
		<td valign="top" width="3%">
		&nbsp;</td>
		<td colspan="2" valign="top">

&nbsp;</td>
	</tr>
	<tr>
		<td valign="top" width="3%">
		<p style="margin-top: 0; margin-bottom: 0">
		<font face="Wingdings">&#168;</font></td>
		<td colspan="2" valign="top">

<p style='mso-style-name:"Flush Left\&#039;,fl; text-align: justify; text-autospace: none; font-family: Times New Roman&#039;,serif";margin-top:0;margin-bottom:0in;margin-bottom:0;'>Fees paid
previously with preliminary materials.</p>

		</td>
	</tr>
	<tr>
		<td valign="top" width="3%">
		&nbsp;</td>
		<td colspan="2" valign="top">

&nbsp;</td>
	</tr>
	<tr>
		<td valign="top" width="3%">
		<p style="margin-top: 0; margin-bottom: 0">
		<font face="Wingdings">&#168;</font></td>
		<td colspan="2" valign="top">

<p style='mso-style-name:"Flush Left\&#039;,fl; text-align: justify; text-autospace: none; font-family: Times New Roman&#039;,serif";margin-top:0;margin-bottom:0in;margin-bottom:0;'>Check box if
any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and
identify the filing for which the offsetting fee was paid previously.&nbsp; Identify
the previous filing by registration statement number, or the Form or Schedule
and the date of its filing.</p>

		</td>
	</tr>
	<tr>
		<td valign="top" width="3%">
		&nbsp;</td>
		<td colspan="2" valign="top">

&nbsp;

		</td>
	</tr>
	<tr>
		<td valign="top" width="3%">
		<p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
		<td colspan="2" valign="top">

<p style='mso-style-name:"Flush Left\&#039;,fl; text-align: justify; text-autospace: none; font-family: Times New Roman&#039;,serif";margin-top:0;margin-bottom:0in;margin-bottom:0;'>1.&nbsp;&nbsp; Amount
Previously Paid:&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>

		</td>
	</tr>
	<tr>
		<td valign="top" width="3%">
		<p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
		<td colspan="2" valign="top">

<p style='mso-style-name:"Flush Left\&#039;,fl; text-align: justify; text-autospace: none; font-family: Times New Roman&#039;,serif";margin-top:12.0pt;margin-bottom:0in;margin-bottom:.0001pt;margin-top:0;margin-bottom:0in;
margin-bottom:0;'>2.&nbsp;&nbsp; Form,
Schedule or Registration Statement No.:&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>

		</td>
	</tr>
	<tr>
		<td valign="top" width="3%">
		<p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
		<td colspan="2" valign="top">

<p style='mso-style-name:"Flush Left\&#039;,fl; text-align: justify; text-autospace: none; font-family: Times New Roman&#039;,serif";margin-top:12.0pt;margin-bottom:0in;margin-bottom:.0001pt;margin-top:0;margin-bottom:0in;
margin-bottom:0;'>3.&nbsp;&nbsp; Filing
Party:&nbsp; &nbsp;&nbsp; </p>

		</td>
	</tr>
	<tr>
		<td valign="top" width="3%" style="border-bottom: 1px solid #000000">
		<p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
		<td colspan="2" valign="top" style="border-bottom: 1px solid #000000">

<p style='margin-bottom:0;text-align:justify;text-autospace:none;font-family:"Times New Roman","serif"; margin-top:0'>4.&nbsp;&nbsp;&nbsp;Date
Filed:&nbsp;</p>
<p style='margin-bottom:0;text-align:justify;text-autospace:none;font-family:"Times New Roman","serif"; margin-top:0'>&nbsp;</p>
<p style='margin-bottom:0;text-align:justify;text-autospace:none;font-family:"Times New Roman","serif"; margin-top:0'>&nbsp;</p>
<p style='margin-bottom:0;text-align:justify;text-autospace:none;font-family:"Times New Roman","serif"; margin-top:0'>&nbsp;</p></td>
	</tr>
</table>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

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<hr size=2 width="100%" noshade color=navy align=center>

</div>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

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<div style='page:Section2;'>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'><b>&nbsp;</b></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><img width=315 height=50
src="image001.jpg"></p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>2361 McGaw Avenue</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;text-autospace:none;font-family:"Times New Roman";margin-top:0in;page-break-after:auto'>Irvine, California 92614</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;text-autospace:none;font-family:"Times New Roman";font-weight:bold;margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:0in;page-break-after:auto'>______________________</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;text-autospace:none;font-family:"Times New Roman";font-weight:bold;margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:0in;page-break-after:auto'>NOTICE OF ANNUAL MEETING OF SHAREHOLDERS<br>
TO BE HELD JANUARY 9, 2009</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-bottom:12.0pt; margin-left:0in; margin-right:0in; margin-top:0in'>To the shareholders of Pro-Dex, Inc.:</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:0in'><font size="3">The
Annual Meeting of Shareholders of Pro-Dex, Inc. (the &#147;Company&#148;) will be held at
the Pro-Dex company headquarters, 2361 McGaw Avenue, Irvine, California, on Friday, January 9, 2009, at 8:00 A.M. Pacific Time, for the
following purposes:</font></p>

<ol style="font-size: 12pt">
	<li>
	<p style='text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:0.25in;'><font size="3">To elect four persons to
serve as directors of the Company for a term of one year each. The nominees for
election to the Board are named in the attached Proxy Statement, which is part
of this Notice.&nbsp; </font></p></li>
	<li>
	<p style='text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:0.25in;'><font size="3">To approve the authority for
the Board of Directors to effect a reverse stock split of all outstanding
shares of the Company&#146;s Common Stock at any time prior to January 1, 2010, as
deemed necessary by the Board.</font></p></li>
	<li>
	<p style='text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:0.25in;'><font size="3">To ratify the appointment of Moss
Adams, LLP as independent public accountants of the Company for the fiscal year
ending June 30, 2009.</font></p></li>
	<li>
	<p style='text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:0.25in;'><font size="3">To transact such other business as
may properly come before the Annual Meeting or any adjournments or
postponements thereof.</font></p></li>
</ol>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-bottom:12.0pt;text-indent:.5in; margin-left:0in; margin-right:0in; margin-top:0in'>Only shareholders of record at the close of business
on November 7, 2008, are entitled to notice of and to vote at the Annual
Meeting and at any adjournments or postponements of the Annual Meeting.</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-bottom:12.0pt;text-indent:.5in; margin-left:0in; margin-right:0in; margin-top:0in'>All shareholders are
cordially invited to attend the Annual Meeting in person. Whether or not you
plan to attend the Annual Meeting, your vote is important.&nbsp; In an effort to
facilitate the voting process we are pleased to take advantage of new
Securities and Exchange Commission rules that allow proxy materials to be
furnished to shareholders on the Internet.&nbsp; You can vote by proxy over the
Internet by following the instructions provided in the Notice of Internet
Availability of Proxy Materials that was previously mailed to you on or about November
28, 2008, or, if you request printed copies of the proxy materials by mail, you
can also vote by mail or by telephone.&nbsp; Your promptness in voting by proxy will
assist in its expeditious and orderly processing and will assure that you are
represented at the Annual Meeting. If you vote by proxy, you may nevertheless
attend the Annual Meeting and vote your shares in person.</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-bottom:12.0pt;text-indent:.5in; margin-left:0in; margin-right:0in; margin-top:0in'><b>TO ENSURE YOUR REPRESENTATION AT THE
ANNUAL MEETING, YOU ARE URGED TO READ THIS PROXY STATEMENT AND SUBMIT YOUR
PROXY OR VOTING INSTRUCTIONS AS SOON AS POSSIBLE BY FOLLOWING THE INSTRUCTIONS
IN THE NOTICE OF INTERNET AVAILABILITY OF PROXY MATERIALS, WHICH WAS MAILED TO
YOU ON OR ABOUT NOVEMBER 28, 2008, OR, IF YOU REQUEST PRINTED COPIES OF THE
PROXY MATERIALS BY MAIL, YOU CAN ALSO VOTE BY MAIL OR BY TELEPHONE.</b></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:0in;margin-right:0in;
margin-bottom:12.0pt;margin-left:4in;text-align:left'>By Order of the Board of Directors,</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:0in;margin-right:0in;
margin-bottom:12.0pt;margin-left:4in;text-align:left'>PRO-DEX INC.</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:4in;text-align:left; margin-right:0in; margin-top:0in'>/s/ Jeffrey J. Ritchey</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:4in'>Corporate Secretary</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:3.0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>Page 1</p>
<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<div style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center'>

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<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

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<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:3.0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><img width=315 height=50
src="image001.jpg"></p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>2361 McGaw Avenue</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;text-autospace:none;font-family:"Times New Roman";margin-top:0in;page-break-after:auto'>Irvine, California 92614</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;text-autospace:none;font-family:"Times New Roman";margin-top:0in;page-break-after:auto'><b>______________________</b></p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center'><b><font style="font-size: 12.0pt">&nbsp;</font></b></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>ANNUAL MEETING OF
SHAREHOLDERS</b></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>TO BE HELD JANUARY
9, 2009</b></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
<b>______________________ </b></p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;text-autospace:none;font-family:"Times New Roman";font-weight:bold'>PROXY STATEMENT</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
<b>________________________</b></p>
<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center'>&nbsp;</p>
<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
<b>SOLICITATION OF PROXIES</b></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-top:0in'>
<font size="3">The Board of
Directors of Pro-Dex, Inc. (the &#147;Company&#148;) has made these materials available
to you on the Internet, or, upon your request, has delivered printed versions
of these materials to you by mail, in connection with the Board&#146;s solicitation
of proxies for use at the Company&#146;s Annual Meeting of Shareholders to be held
at the Pro-Dex company headquarters, 2361 McGaw Avenue, Irvine, California, on Friday, January 9, 2009, at 8:00 A.M. Pacific
Time, and at any and all adjournments or postponements thereof. Shareholders
are requested to promptly vote by proxy over the Internet by following the
instructions provided in the Notice of Internet Availability of Proxy
Materials, which was previously mailed to you on or about November 28, 2008.&nbsp;
If you request printed copies of the proxy materials by mail, you can also vote
by mail or by telephone.&nbsp; &nbsp;All shares represented by each properly submitted
and unrevoked proxy received in advance of the Annual Meeting will be voted in
the manner specified therein, and if no direction is indicated, &#147;for&#148; each of
the proposals described on the proxy card.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-top:12.0pt;text-indent:.5in'>
<font size="3">Any
shareholder has the power to revoke his or her proxy at any time before it is
voted.&nbsp; A proxy may be revoked by delivering a written notice of revocation to
the Secretary of the Company prior to or at the Annual Meeting, by voting again
on the Internet or by telephone (only your latest Internet or telephone proxy
submitted prior to 11:59 P.M. Eastern Time on Thursday,
January 8 will be counted), by submitting prior to or at the Annual
Meeting a later dated proxy card executed by the person executing the prior
proxy, or by attendance at the Annual Meeting and voting in person by the
person submitting the prior proxy.</font></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:12.0pt;text-indent:.5in; margin-left:0in; margin-right:0in'>Any shareholder
who would like to vote in person at the Annual Meeting and owns shares in
street name, should inform his/her broker bank of such plans and request a
legal proxy from the broker. Such shareholders will need to bring the legal
proxy with them to the Annual Meeting and valid picture identification such as
a driver's license or passport in addition to documentation indicating share
ownership. Such shareholders who do not receive the legal proxy in time, should
bring with them to the Annual Meeting their most recent brokerage account
statement showing that they owned Pro-Dex, Inc. stock as of the record date.&nbsp;
Upon submission of proper identification and ownership documentation, the
Company will be able to verify ownership of its Common Stock and admit the
shareholder to the Annual Meeting; however, such shareholder will not be able
to vote his/her shares at the Annual Meeting without a legal proxy.&nbsp;
Shareholders are advised that if they own shares in street name and request a
legal proxy, any previously executed proxy will be revoked, and such
shareholder&#146;s vote will not be counted unless he/she appears at the Annual
Meeting and votes in person.</p>
<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-top:12.0pt;text-indent:.5in'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-top:12.0pt;text-indent:.5in'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-top:12.0pt;text-indent:.5in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>Page 2</p>
<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>

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<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

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<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman"'>The Company&#146;s Board of Directors does not presently intend to
bring any business before the Annual Meeting other than the proposals referred
to in this proxy statement and specified in the Notice of Meeting. So far as is
known to the Company&#146;s Board of Directors, no other matters are to be brought
before the meeting. As to any business that may properly come before the
meeting, however, it is intended that shares represented by proxies held by
management will be voted in accordance with the judgment of the persons voting
the shares.</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman"'>
<b>This proxy statement, the accompanying
proxy card and the Company&#146;s Annual Report are being made available on the
internet at</b>   www.proxyvote.com</a> <b>through the notice and access process to the
Company&#146;s shareholders on or about November 28, 2008.</b>&nbsp; The cost of
soliciting proxies will be borne by the Company. The solicitation will be made
through the internet and expenses will include reimbursement paid to brokerage
firms and others for their expenses in forwarding solicitation material regarding
the Annual Meeting to beneficial owners of the Company&#146;s Common Stock.&nbsp; Further
solicitation of proxies may be made by mail upon request, and telephone or oral
communications with some shareholders. The Company&#146;s regular employees, who
will not receive additional compensation for the solicitation, or a compensated
proxy solicitation firm, will make such further solicitations. </p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;text-autospace:none;font-family:"Times New Roman";font-weight:bold'>OUTSTANDING SHARES AND VOTING RIGHTS</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman"'>Only holders of record of the 9,698,889
shares of the Company&#146;s Common Stock outstanding at the close of business on November
7, 2008, are entitled to notice of and to vote at the Annual Meeting or any
adjournment or postponement thereof.&nbsp; Under Colorado law, the Company&#146;s
Articles of Incorporation and the Company&#146;s Bylaws, <a name="_DV_C6">the
holders of shares entitled to cast </a>a
majority of the <a name="_DV_C8">total votes of the outstanding
shares of stock</a> entitled to vote<a
name="_DV_C9"> on each matter, as of the record date</a>, represented in person or by proxy, will constitute a
quorum for the transaction of business at <a name="_DV_C11">the
Annual Meeting.&nbsp; If a quorum is not present, the Annual Meeting may be
postponed or adjourned to allow additional time for obtaining additional
proxies or votes.&nbsp; At any subsequent reconvening of the Annual Meeting, all
proxies will be voted in the same manner as the proxies would have been voted
at the original convening of the Annual Meeting, except for any proxies that
have been effectively revoked or withdrawn prior to the reconvening of the
Annual Meeting</a>.&nbsp; Shares of the
Company&#146;s Common Stock represented in person or by proxy (regardless of whether
the proxy has authority to vote on all matters), as well as abstentions and
broker non-votes, will be counted for purposes of determining whether a quorum
is present at the meeting.</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman"'>An &#147;abstention&#148; is the voluntary act of
not voting by a shareholder who is present at a meeting and entitled to vote.&nbsp;
&#147;Broker non-votes&#148; are shares of voting stock held in record name by brokers
and nominees concerning which: (i) the broker or nominee does not have
discretionary voting power under applicable rules or the instruments under
which it serves in such capacity and instructions have not been received from
the beneficial owners or persons entitled to vote; or (ii) the record holder
has indicated on the proxy or has executed a proxy and otherwise notified the
Company that it does not have authority to vote such shares on that matter.</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman"'>Assuming a quorum is present, for
Proposal 1 (the election of directors) the four nominees for directors
receiving the highest number of affirmative votes will be elected; votes
withheld, broker non-votes and votes against a nominee have no practical
effect.&nbsp; For Proposal 2 (authority for the Board of Directors to effect a
reverse stock split), the matter will be approved if the votes
cast in favor of the matter represent a majority of the shares of Common Stock
entitled to vote thereon (in other words, if the votes in favor of Proposal 2
represent more than 50% of the 9,698,889 shares of Common Stock entitled to
vote at the Annual Meeting).&nbsp; As such, for Proposal No. 2, abstentions and broker non-votes will have the practical
effect of a vote opposing the matter. &nbsp;In matters other than election of
directors and approval of the reverse stock split, assuming that a quorum is
present<b>, </b>for each matter, the matter will be approved if the votes
cast in favor of the matter exceed the votes cast opposing the matter.&nbsp; In such matters, abstentions and broker non-votes will
not be included in the vote totals and, therefore, will have no effect on the
vote.&nbsp; Each shareholder will be entitled to one vote, in person
or by proxy, for each share of Common Stock held of record on the record date.
Votes cast at the meeting will be tabulated by the person or persons appointed
by the Company to act as inspectors of election for the meeting. </p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>Page 3</p>
<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<div style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<font face="Times New Roman">

<br clear=all
style='page-break-before:always'>


</font>


<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;page-break-after:avoid;text-autospace:none;font-family:"Times New Roman";font-weight:bold;text-align:left'>Recommendation of
the Company&#146;s Board of Directors</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman"'>The Company&#146;s Board of Directors recommends
that the Company&#146;s shareholders vote &#147;for&#148; each of the proposals described in
this proxy statement and the accompanying Notice of Meeting.</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman"'>
<b>THE PROPOSALS TO BE VOTED UPON AT
THE MEETING ARE DISCUSSED IN DETAIL IN THIS PROXY STATEMENT. YOU ARE STRONGLY
URGED TO READ AND CONSIDER CAREFULLY THIS PROXY STATEMENT IN ITS ENTIRETY.</b></p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>Page 4</p>
<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<div style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<font face="Times New Roman">

<br clear=all
style='page-break-before:always'>


</font>


<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman";text-align:center;text-indent:0in'><b>SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT</b></p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman";text-indent:0in'>The following table
sets forth certain information with respect to the beneficial ownership of the
Company&#146;s Common Stock as of the record date, November 7, 2008, by (i) each
person known by the Company to beneficially own more than 5% of the outstanding
shares of Common Stock, (ii) each of the Company&#146;s current and nominated
directors, (iii) each of the Named Executive Officers (as hereinafter defined),
and (iv) all current directors and Named Executive Officers of the Company as a
group.</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-indent:0in'>&nbsp;</p>

<div align="left">

<table class=MsoNormalTable border=0 cellpadding=0
 style='border-collapse:collapse' width="90%">
 <tr>
  <td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'><b>&nbsp;</b></p>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'><b><u>
	<font size="3">Name of Beneficial Owner</font></u><sup><font size="3">(1)</font></sup></b></p>
  </td>
  <td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' colspan="2">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center;margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="3">Number of Shares of Common <u><br>
	Stock Beneficially
  Owned</u></font><sup><font size="3">(2)</font></sup></b></p>
  </td>
  <td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' colspan="2">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center;margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="3">Percent of Common Stock <u><br>
	Beneficially Owned</u></font><sup><font size="3">(3)</font></sup></b></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>First Wilshire Securities
  Management Inc.</p>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>1224 East Green Street</p>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>Pasadena, CA 91106</p>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>1,559,284</p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>16.1%</p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>Ronald G. Coss </p>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>3 Overlook Drive</p>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>Newport Coast, CA 92657</p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;&nbsp;&nbsp; 1,316,879<sup>(4)</sup> </p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>13.4%</p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center;margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>George J. Isaac </p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>194,500<sup>(4)</sup></p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;2.0% </p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>Mark P. Murphy</p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>253,200<sup>(4)</sup></p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;2.6%</p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>Michael A. Mesenbrink</p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>95,000<sup>(4)</sup></p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;1.0%</p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>Valerio L. Giannini</p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>95,000<sup>(4)</sup></p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;1.0%</p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>William, L. Healey</p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>20,000<sup>(4)</sup></p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;*</p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>David Holder</p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>--</p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>--</p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>Michael J. Berthelot</p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>--</p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>--</p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp; </p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>Patrick Johnson </p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>458,430<sup>(4)</sup></p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>4.5% </p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>Jeffrey J. Ritchey&nbsp;&nbsp; </p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>128,500<sup>(4)</sup></p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>1.3%</p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp; </p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:left; margin-left:0in; margin-right:0in; margin-top:0in'>All Named Executive
  Officers, current directors and director nominees as a group (9 persons)</p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'><a
  name="_DV_M68"></a>1,244,630<sup>(4)</sup></p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'><a name="_DV_M69"></a>11.8%<b> </b></p>
  </td>
  <td valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
 </tr>
</table>

</div>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:.5in;text-indent:-.5in; margin-right:0in; margin-top:0in'>__________________________</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:6.0pt;margin-right:0in;margin-bottom:0in;
margin-left:.5in;margin-bottom:.0001pt;text-indent:-.5in'>* Less than 1%.</p>

<ol style="font-size: 10pt">
	<li>
	<p style='text-align:justify;text-autospace:none;font-family:"Times New Roman";'>
	<font size="3">Unless otherwise indicated, the address is c/o
Pro-Dex, Inc., 2361 McGaw Avenue, Irvine, California 92614.</font></p></li>
	<li>
	<p style='text-align:justify;text-autospace:none;font-family:"Times New Roman";'>
	<font size="3">Unless otherwise indicated, to the Company&#146;s
knowledge, the persons named in the table have sole voting and sole investment
power with respect to all shares beneficially owned, subject to community
property and similar laws, where applicable.</font></p></li>
	<li>
	<p style='text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>
	<font size="3">Applicable percentage ownership is based on 9,698,889 shares of Common Stock outstanding as of November
7, 2008.&nbsp; Any securities not outstanding but subject to <a name="_DV_C25">warrants
or</a> options exercisable as of November
7, 2008 or exercisable within 60 days after such date are deemed to be
outstanding for the purpose of computing the percentage of outstanding Common
Stock beneficially owned by the person holding such warrants
or options but are not deemed to be outstanding for the purpose
of computing the percentage of Common Stock beneficially owned by any other
person.</font></p></li>
	<li>
	<p style='text-align:justify;text-autospace:none;font-family:"Times New Roman";'>
	<font size="3">Includes shares of Common Stock <a name="_DV_C28">issuable
upon the exercise of</a> warrants
and options which were exercisable as of November 7, 2008 or exercisable within
60 days after November 7, 2008, as follows: Mr. Coss, <a name="_DV_C18">100,000</a><a
name="_DV_M78"></a> shares, Mr. Isaac, 90,000 shares; Mr. Murphy, 30,000
shares; Mr. Mesenbrink, 95,000 shares; Mr. Giannini, 75,000 shares; Mr. Healey
20,000 shares, Mr. Johnson, 412,500 shares; Mr. Ritchey, 124,500 shares, and
all current directors, director nominees and Named Executive Officers as a
group, 847,000 shares. </font></p></li>
</ol>

<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>Page 5</p>
<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<div style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<font face="Times New Roman">

<br clear=all
style='page-break-before:always'>


</font>


<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:12.0pt;text-align:center;
page-break-after:avoid; margin-left:0in; margin-right:0in'><b>Proposal No. 1</b></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:12.0pt;text-align:center;
page-break-after:avoid; margin-left:0in; margin-right:0in'><b>ELECTION OF DIRECTORS</b></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:12.0pt; margin-left:0in; margin-right:0in'><b>Current Board Structure and
Director Terms</b></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:12.0pt;text-indent:.5in; margin-left:0in; margin-right:0in'>The Company&#146;s
Articles of Incorporation, as amended, do not currently provide for the
classification of the Company&#146;s Board of Directors.&nbsp; Prior to the 2007 Annual
Shareholder Meeting, the Articles provided for the classification of the
Company&#146;s Board of Directors, with one Class standing for re-election at each
annual meeting of shareholders. &nbsp;The Board of Directors is currently composed
of five (5) members.&nbsp; At the 2007 Annual Shareholders Meeting the shareholders
approved the elimination of the classification of the Board with the exception
that the term of Mr. Murphy, who was previously a Class III director, would
continue until the normal expiration of his term in 2009.&nbsp;&nbsp; As a result, the
Board of Directors currently has one remaining director (Mr. Murphy) whose term
expires in 2009, and all the other directors or their successor nominees stand
for election each year. &nbsp;Next year, at the 2009
shareholders&#146; meeting, all director positions will be elected. </p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:.5in;text-autospace:ideograph-numeric ideograph-other; margin-left:0in; margin-right:0in; margin-top:0in'>Certain
information with respect to each of the nominees who will be presented at the
Annual Meeting by the Board of Directors for election as a director is set
forth below. Although it is anticipated that each nominee will be available to
serve as a director, should that nominee become unavailable to serve, the
proxies will be voted for such other person as may be designated by the
Company&#146;s Board of Directors.</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman"'>Unless the authority to vote for directors has been withheld in
the proxy, the persons named in the accompanying proxy intend to vote at the
Annual Meeting for the election of the nominees presented below. In the
election of directors, assuming a quorum is present, the four nominees for
director receiving the highest number of votes cast at the meeting will be
elected as directors of the Company.<a name="_DV_M89"></a><a name="_DV_M90"></a><a
name="_DV_M91"></a><a name="_DV_M92"></a>&nbsp; </p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;text-autospace:none;font-family:"Times New Roman";font-weight:bold;margin-top:0in'><a name="_DV_M94"></a>DIRECTORS</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:.5in; margin-left:0in; margin-right:0in; margin-top:0in'><a name="_DV_M95"></a>Set forth
below is certain information with respect to the Company&#146;s continuing director
and director nominees.</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center;text-indent:.5in'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center'>&nbsp;</p>

<div align="center">

<table class=MsoNormalTable border=0 cellpadding=0 width="70%"
 style='border-collapse:collapse' id="table12">
 <tr style='page-break-inside:avoid;height:.05pt'>
  <td valign=top style='border-right:1px solid #000000; border-left:1px solid #000000; border-top:1px solid #000000; padding:1.1pt;
  border-bottom-style:none; border-bottom-width:medium'>
  <b>Name</b></td>
  <td valign=top style='border-left:1px solid #000000; border-right:1px solid #000000; border-top:1px solid #000000; padding:1.1pt;
  border-bottom-style:none; border-bottom-width:medium' align="center">
  <b>Age</b></td>
  <td valign=top style='border-left:1px solid #000000; border-right:1px solid #000000; border-top:1px solid #000000; padding:1.1pt;
  border-bottom-style:none; border-bottom-width:medium'>
  <b>Position&nbsp;with&nbsp;Company</b></td>
 </tr>
 <tr style='page-break-inside:avoid;height:.05pt'>
  <td valign=top style='border-right:1px solid #000000; border-left:1px solid #000000; border-top:1px solid #000000; padding:1.1pt;
  border-bottom-style:none; border-bottom-width:medium'>
  Mark&nbsp;P.&nbsp;Murphy</td>
  <td valign=top style='border-left:1px solid #000000; border-right:1px solid #000000; border-top:1px solid #000000; padding:1.1pt;
  border-bottom-style:none; border-bottom-width:medium' align="center">
  49&nbsp;</td>
  <td valign=top style='border-left:1px solid #000000; border-right:1px solid #000000; border-top:1px solid #000000; padding:1.1pt;
  border-bottom-style:none; border-bottom-width:medium'>
  Director</td>
 </tr>
 <tr style='page-break-inside:avoid;height:.05pt'>
  <td valign=top style='border-right:1px solid #000000; border-left:1px solid #000000; border-top:1px solid #000000; padding:1.1pt;
  border-bottom-style:none; border-bottom-width:medium'>
  &nbsp;</td>
  <td valign=top style='border-left:1px solid #000000; border-right:1px solid #000000; border-top:1px solid #000000; padding:1.1pt;
  border-bottom-style:none; border-bottom-width:medium' align="center">
  &nbsp;</td>
  <td valign=top style='border-left:1px solid #000000; border-right:1px solid #000000; border-top:1px solid #000000; padding:1.1pt;
  border-bottom-style:none; border-bottom-width:medium'>
  Chief&nbsp;Executive&nbsp;Officer&nbsp;and&nbsp;President</td>
 </tr>
 <tr style='page-break-inside:avoid;height:.05pt'>
  <td valign=top style='border-right:1px solid #000000; border-left:1px solid #000000; border-top:1px solid #000000; padding:1.1pt;
  border-bottom-style:none; border-bottom-width:medium'>
  George&nbsp;J.&nbsp;Isaac</td>
  <td valign=top style='border-left:1px solid #000000; border-right:1px solid #000000; border-top:1px solid #000000; padding:1.1pt;
  border-bottom-style:none; border-bottom-width:medium' align="center">
  63&nbsp;</td>
  <td valign=top style='border-left:1px solid #000000; border-right:1px solid #000000; border-top:1px solid #000000; padding:1.1pt;
  border-bottom-style:none; border-bottom-width:medium'>
  Director&#185;&nbsp;and&nbsp;Nominee</td>
 </tr>
 <tr style='page-break-inside:avoid;height:.05pt'>
  <td valign=top style='border-right:1px solid #000000; border-left:1px solid #000000; border-top:1px solid #000000; padding:1.1pt;
  border-bottom-style:none; border-bottom-width:medium'>
  William&nbsp;L.&nbsp;Healey</td>
  <td valign=top style='border-left:1px solid #000000; border-right:1px solid #000000; border-top:1px solid #000000; padding:1.1pt;
  border-bottom-style:none; border-bottom-width:medium' align="center">
  63</td>
  <td valign=top style='border-left:1px solid #000000; border-right:1px solid #000000; border-top:1px solid #000000; padding:1.1pt;
  border-bottom-style:none; border-bottom-width:medium'>
  Director&#185;&nbsp;and&nbsp;Nominee</td>
 </tr>
 <tr style='page-break-inside:avoid;height:.05pt'>
  <td valign=top style='border-right:1px solid #000000; border-left:1px solid #000000; border-top:1px solid #000000; padding:1.1pt;
  border-bottom-style:none; border-bottom-width:medium'>
  David&nbsp;Holder</td>
  <td valign=top style='border-left:1px solid #000000; border-right:1px solid #000000; border-top:1px solid #000000; padding:1.1pt;
  border-bottom-style:none; border-bottom-width:medium' align="center">
  66&nbsp;</td>
  <td valign=top style='border-left:1px solid #000000; border-right:1px solid #000000; border-top:1px solid #000000; padding:1.1pt;
  border-bottom-style:none; border-bottom-width:medium'>
  Nominee</td>
 </tr>
 <tr style='height:12.65pt'>
  <td valign=top style='border-top:1.0pt solid windowtext;
  border-left:1px solid #000000;border-bottom:1.0pt solid windowtext;border-right:medium none;
  padding:1.1pt;'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman","serif";text-align:left; margin-left:0in; margin-right:0in; margin-top:0in'>Michael&nbsp;J.&nbsp;Berthelot</p>
  </td>
  <td valign=top style='border-top:1.0pt solid windowtext;
  border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:medium none;
  padding:1.1pt;' align="center">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman","serif";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>58&nbsp;</p>
  </td>
  <td valign=top style='border-right:1px solid windowtext; border-top:1.0pt solid windowtext; border-bottom:1.0pt solid windowtext; border-left:medium none;padding:1.1pt;'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman","serif";text-align:left; margin-left:0in; margin-right:0in; margin-top:0in'>Nominee</p>
  </td>
 </tr>
 </table>

</div>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'><a name="_DV_M96"></a>__________________________</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'><a name="_DV_M97">
<font size="3"></font></a><font size="3">(1)
Member of the Audit and Compensation Committees</font></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:12.0pt;text-indent:.5in; margin-left:0in; margin-right:0in'>Messrs.
Healey and Isaac are, and Messrs. Berthelot and Holder are expected to be if
elected, &#147;independent&#148; directors as such term is defined in Rule 4200(a)(15) of
the Nasdaq Marketplace Rules.</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:12.0pt;text-indent:.5in; margin-left:0in; margin-right:0in'>The Board of
Directors is of the opinion that the election to the Company&#146;s Board of
Directors of the director nominees identified herein, each of whom has
consented to serve if elected, would be in the Company&#146;s best interests. </p>

<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
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<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
<b>THE BOARD OF DIRECTORS RECOMMENDS THAT YOU VOTE &#147;FOR&#148;
ELECTION OF THE NOMINEES NAMED BELOW.</b></p>

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<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:.5in; margin-left:0in; margin-right:0in; margin-top:0in'>George J. Isaac (63), current
director and nominee,<i> </i>is a Certified Public Accountant and has had his
own certified public accounting firm since 2003.&nbsp; Mr. Isaac has served as a
consultant to the Company and its predecessor from 1978 until 1984, was the Company&#146;s
Chief Financial Officer from August 1995 to July 2002, and Secretary from July
2002 to October 2003.&nbsp; Mr. Isaac was a principal in the certified public
accounting firm of Joseph B. Cohan and Associates, Worcester, Massachusetts
from 1978 to 1995.&nbsp; Mr. Isaac is a director of Professional Sales Associates,
Inc., a dental product sales organization, and Commerce Bank &amp; Trust and is
a trustee of Becker College.&nbsp; Mr. Isaac has been a director of the Company since 1995.</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-indent:.5in'>&nbsp;</p>

<p style='text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:.5in; margin-left:0in; margin-right:0in'>William L. Healey (63), current director
and nominee, has been a private investor and business
consultant since 2006. From 2002 to 2005, he served as President and Chief
Executive Officer of Cal Quality Electronics, an electronics manufacturing
company. Mr. Healey served as a private investor and consultant from 1999 to
2002. He served as Chairman of the Board of Smartflex Systems, an electronics
manufacturing company, from 1996 to 1999 and as its President and Chief
Executive Officer from 1989 to 1999. Prior to 1989, Mr. Healey served in a
number of senior executive positions with Silicon Systems, including Senior
Vice President of Operations. Mr.&nbsp;Healey also serves as a director of
Microsemi Corporation and Sypris Solutions Inc. </p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:.5in; margin-left:0in; margin-right:0in; margin-top:0in'>David Holder (66), nominee, has
been the Managing Director for Holder Capital Partners, a Southern California
focused, early stage consulting practice since 1984.&nbsp; In addition to his
Mission Ventures investments (outlined below), he has personally invested in
nineteen early stage ventures and has four currently active portfolio
investments.&nbsp; From 1996 to 2001, he also served as founding venture
partner with Mission Ventures where he introduced 6 companies (all currently
profitable and growing).&nbsp; During his tenure at Mission Ventures, $288
million was raised in two funds.&nbsp; Mr. Holder has served as CEO and Vice
President of Sales for venture backed companies.&nbsp; He has formerly served
or attended the board of eleven venture backed companies including Pyxis,
TheraTx, Nexiant and AccentCare.&nbsp; He currently serves as director of
Satori World Medical and attends Cogent Healthcare board meetings as a
representative of Mission Ventures.&nbsp; He serves on the advisory board of
MedAssets Corporation and also serves as a member of several non profit boards.
</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-indent:.5in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:.5in; margin-left:0in; margin-right:0in; margin-top:0in'>Michael J. Berthelot (58), nominee,<i>
</i>has been the Chief Executive Officer of Cito Capital Corporation, a
strategic consulting firm since 2003.&nbsp; From 1992 to 2003, he served as Chairman
and Chief Executive Officer of TransTechnology Corporation, a publicly traded
multinational manufacturing firm and from 2003 until July 2006, he continued to
serve as its non-executive Chairman.&nbsp; Mr. Berthelot is a Certified Public
Accountant and serves as a director of Fresh Del Monte Products Company and on
the boards of several privately-held companies in the technology and financial
services industries.</p>

<p style='margin:12.0pt 0in; text-align:center;page-break-after:avoid;text-autospace:none;font-family:"Times New Roman";font-weight:bold;'>CONTINUING
DIRECTOR</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:.5in; margin-left:0in; margin-right:0in; margin-top:0in'>Mark P. Murphy (49), was appointed
the Company&#146;s Chief Executive Officer and President in August 2006. From
September 1995 to August 2006, Mr. Murphy served in senior executive roles
including Executive Vice President, Chief Financial Officer, Chief Operating
Officer and a director of Kyocera Tycom Corporation, a manufacturing company
that designs and sells precision cutting instruments, where he managed the
firm&#146;s 400 employees worldwide.&nbsp; Prior to Kyocera Tycom, Mr. Murphy was Chief
Operating Officer and a director of Dynamotion Corporation and was with Arthur
Young &amp; Co&#146;s audit and consulting practice.&nbsp; Mr. Murphy earned a B.A. in
Business Administration and an M.B.A. in Finance from California State University at Fullerton.&nbsp; Mr. Murphy has been a director of the Company since 2002.</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center;page-break-after:avoid'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:avoid; margin-left:0in; margin-right:0in; margin-top:0in'><b>BUSINESS
EXPERIENCE OF KEY MANAGEMENT</b></p>

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<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:.5in; margin-left:0in; margin-right:0in; margin-top:0in'>Set forth
below is information concerning other non-director key management personnel of
the Company. </p>
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<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:12.0pt;text-indent:.5in; margin-left:0in; margin-right:0in'>Jeffrey J.
Ritchey (45), is the Company&#146;s<i> </i>Treasurer, Chief Financial Officer and
Secretary. Mr. Ritchey joined the Company&#146;s Micro Motors subsidiary as
Controller in August 2001 and became the Company&#146;s Chief Financial Officer in
July 2002 and Secretary in October 2003.&nbsp; Mr. Ritchey served as the interim
Chief Executive Officer of the Company from April 2006 to August 2006.&nbsp; Mr.
Ritchey&#146;s previous experience includes serving as the Controller and Finance
Director of Kyocera Tycom Corporation from 1997 to 2001 and corporate and
operational positions at Hughes Electronics and DIRECTV (subsidiaries of
General Motors) from 1990 to 1997.&nbsp; Mr. Ritchey received B. S. degrees in
Economics and Finance and a M.S. degree in Finance from the University of Arizona and is a Chartered Financial Analyst (&#147;CFA&#148;) charterholder.</p>

<p style='text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:.5in; margin-left:0in; margin-right:0in; margin-top:0in'>Patrick L. Johnson (47), is the
Company&#146;s<i> </i>Executive Vice President and Chief Business Development
Officer.&nbsp; He joined the Company&#146;s Micro Motors subsidiary as Vice
President and General Manager in March 2000 and served as the President and CEO
of the Company from September 2002 to April 2006
and as a director of the Company from December 2005 to October 2006.&nbsp;
Prior to joining the Company, Mr. Johnson served as General Manager of Analytic
Endodontics, Inc. (a division of Sybron Dental) from 1997 to 2000 and General
Manager of Tycom Dental, Inc. from 1996 to 1997, both dental related product
manufacturers.&nbsp; Prior to that, Mr. Johnson served as Vice-President and General
Manager of Dabico, Inc., a manufacturing company that specialized in the design
and manufacture of in-ground service equipment for commercial and military
aircraft.&nbsp; Mr. Johnson received B.A. degrees in Legal Studies and Philosophy
from the University of California at Santa Cruz and a M.B.A. degree from Pepperdine University. <a name="_DV_M112"></a></p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;text-autospace:none;font-family:"Times New Roman";font-weight:bold'>BOARD OF
DIRECTORS MEETINGS AND RELATED MATTERS</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman"'>During the fiscal year ended June 30, 2008,
the Board of Directors held five meetings and there were no actions by
unanimous written consent.&nbsp; Included in the five meetings were meetings of the
Independent Members Committee that consisted of three Board members, Michael A.
Mesenbrink, George Isaac and Valerio L. Giannini until William L. Healey joined
the Committee in December 2007 and thereafter such Committee consisted of four members.&nbsp;
The Independent Members Committee is comprised entirely of non-employee,
&#147;independent&#148; directors (as defined in Rule 4200(a)(15) of the Nasdaq
Marketplace Rules).&nbsp; No director attended less than 75% of the aggregate of all
meetings of the Board of Directors and all meetings of committees of the Board
of Directors upon which he served.</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>
<font size="3">The Board of Directors has an Audit Committee that consists of four
Board members, Michael A. Mesenbrink, George Isaac, Valerio L. Giannini, and William
L. Healey.&nbsp; William L. Healey joined the Audit Committee in December 2007.&nbsp; The
Audit Committee is comprised entirely of non-employee, &#147;independent&#148; directors
(as defined in Rule 4200(a)(15) of the Nasdaq Marketplace Rules ) and operates
under a written charter adopted by the Board of Directors.&nbsp; The duties of the
Audit Committee include meeting with the independent public accountants of the
Company to review the scope of the annual audit and to review the quarterly and
annual financial statements of the Company before the statements are released
to the Company's shareholders. The Audit Committee also evaluates the
independent public accountants' performance and appoints or replaces the
independent public accounting firm subject if applicable, to shareholder
ratification for the ensuing fiscal year.</font><font style="font-size: 12.0pt">&nbsp; </font>
<font size="3">A
copy of the Audit Committee&#146;s current charter may be found at the Company&#146;s
website at  www.pro-dex.com .&nbsp; The charter
may be found as follows:&nbsp; From our main web page, first click on &#148;Investor
Relations,&#148; and then click on &#147;Governance,&#148; and then click on &#147;Audit Committee
Charter.&#148;&nbsp; The Audit Committee and Board of Directors have confirmed that the
Audit Committee does and will continue to include at least three members and
has confirmed that Mr. Isaac meets applicable SEC regulations for designation
as an &#147;Audit Committee Financial Expert&#148; and being &#147;independent&#148; based upon his
experience noted herein.&nbsp; The Audit Committee held six meetings during the
fiscal year ended June 30, 2008.&nbsp;&nbsp; </font> </p>

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<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:.5in; margin-left:0in; margin-right:0in; margin-top:0in'>The Board of Directors has a
Compensation Committee that consists of four Board members, Michael A.
Mesenbrink, George Isaac, Valerio L. Giannini, and William L. Healey.&nbsp; William
L. Healey joined the Compensation Committee in December 2007.&nbsp; The Compensation
Committee is comprised entirely of non-employee, &#147;independent&#148; directors (as
defined in Rule 4200(a)(15) of the Nasdaq Marketplace Rules) and operates under
a written charter adopted by the Board of Directors, a copy of which may be
found at the Company&#146;s website at www.pro-dex.com.&nbsp; The charter may be found as
follows:&nbsp; From our main web page, first click on &#148;Investor Relations,&#148; then
click on &#147;Governance,&#148; and then click on &#147;Compensation Committee Charter.&#148;&nbsp; The
Compensation Committee establishes compensation policies applicable to the
Company&#146;s executive officers.&nbsp; The Compensation Committee held two meetings and
there were three actions by unanimous written consent during the fiscal year
ended June 30, 2008.</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-indent:.5in'>&nbsp;</p>

<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman";margin-bottom:.0001pt;text-align:justify;text-indent:.5in; margin-left:0in; margin-right:0in; margin-top:0in'><a
name="_DV_M124"></a>The
entire Board of Directors performs the functions of a nominating committee.&nbsp; In
such capacity, the Board identifies and reviews the qualifications of candidate
nominees to the Board of Directors.&nbsp; The procedures followed by the Board in
the nomination process are set forth in &#147;Procedures as Governing the Nominating
Process&#148; which serves as the Board&#146;s charter concerning nominating matters.&nbsp;
The Procedures may be found on the Company&#146;s website at   www.pro-dex.com as follows:&nbsp;&nbsp;&nbsp; From our
main web page, first click on &#148;Investor Relations,&#148; then click on &#147;Governance,&#148;
and then click on &#147;Procedures as Governing the Nominating Process.&#148;&nbsp;&nbsp; </p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Arial Unicode MS";margin:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in'>&nbsp;</p>

<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman";margin-bottom:.0001pt;text-align:justify;text-indent:.5in; margin-left:0in; margin-right:0in; margin-top:0in'>The Board will consider
candidate nominees for election as a director who are recommended by
shareholders.&nbsp; Recommendations should be sent to the Secretary of the Company
and should include the candidate's name and qualifications and a statement from
the candidate that he or she consents to being named in the proxy statement and
will serve as a director if elected. In order for any such candidate to be
considered for nomination and, if nominated, to be included in the proxy
statement, such recommendation must be received by the Secretary not less than
120&nbsp;days prior to the anniversary date of the Company's mailing of its
proxy statement for the most recent annual meeting of shareholders.&nbsp; </p>

<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman";margin-bottom:.0001pt; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>

<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman";margin-bottom:.0001pt;text-align:justify;text-indent:.5in; margin-left:0in; margin-right:0in; margin-top:0in'>The Board of Directors
believes that it is desirable that directors possess an understanding of the
Company's business environment and have the requisite knowledge, skills,
expertise and diversity of experience such that the Board's ability to manage
and direct the affairs and business of the Company is enhanced.&nbsp; Additional
considerations may include an individual&#146;s capacity to enhance the ability of
committees of the Board to fulfill their duties and/or satisfy any independence
requirements imposed by law, regulation or listing requirements.&nbsp; The Board of
Directors may receive candidate nomination suggestions from current Board
members, Company executive officers or other sources, which may be either
unsolicited or in response to requests from the Board for such candidates.&nbsp; The
Board may also, from time to time, engage firms that specialize in identifying
director candidates.&nbsp; Once a person has been identified by the Board as a
potential candidate, the Board may collect and review publicly available
information regarding the person to assess whether the person should be
considered further. If the Board determines that the candidate warrants further
consideration, a member of the Board may contact the person. Generally, if the
person expresses a willingness to be considered and to serve on the Board, the
Board may request information from the candidate, review the person's
accomplishments and qualifications and may conduct one or more interviews with
the candidate.&nbsp; The Board may consider all such information in light of
information regarding any other candidates that the Board might be evaluating
for nomination to the Board of Directors.&nbsp; Board members may also contact one
or more references provided by the candidate or may contact other members of
the business community or other persons that may have greater first-hand
knowledge of the candidate's accomplishments.&nbsp; With the nominee&#146;s consent, the
Board may also engage an outside firm to conduct background checks on
candidates as part of the nominee evaluation process.&nbsp; The Board's evaluation
process does not vary based on the source of the recommendation.&nbsp; </p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:12.0pt;text-indent:.5in; margin-left:0in; margin-right:0in'>As of June 30, 2008,
four of the five members of the Board were &#147;independent&#148; directors (as defined
in Rule 4200(a)(15) of the Nasdaq Marketplace Rules ).&nbsp; No paid consultants
were engaged by the Company, the Board or any of its committees for the
purposes of identifying qualified, interested Board candidates.&nbsp; A copy of the
Board Procedures Concerning Nominations may be found at the Company&#146;s website
at  <font color="#0000FF">www.pro-dex.com</font>.&nbsp; The Procedures may
be found as follows:&nbsp; From our main web page, first click on &#148;Investor
Relations,&#148; and then click on &#147;Governance,&#148; and then click on &#147;Procedures
Governing the Nominating Function&#148;.&nbsp; </p>
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<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;text-autospace:none;font-family:"Times New Roman";font-weight:bold'>COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:12.0pt;text-indent:.5in; margin-left:0in; margin-right:0in'>No
director or executive officer of the Company serves as an officer, director or
member of a compensation committee of any other entity for which an executive
officer or director thereof is also a member of the Company&#146;s Board of
Directors.</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;text-autospace:none;font-family:"Times New Roman";font-weight:bold'><a name="_DV_C96">FAMILY RELATIONSHIPS</a></p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman";margin-top:10.0pt'><a name="_DV_C97">There
are no family relationships among the Company&#146;s executive officers and
directors.</a></p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;text-autospace:none;font-family:"Times New Roman";font-weight:bold'>COMPENSATION OF EXECUTIVE OFFICERS
AND MANAGEMENT</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman"'><a name="_DV_M132"></a>The following table sets forth certain
compensation information for the fiscal years ended June 30, 2008 and 2007, by
our principal executive officer and the other two most highly paid executive
officers of the Company serving as such at the end of the fiscal year ended 2008
whose aggregate total annual salary and bonus for such year exceeded $100,000
(collectively, the &#147;Named Executive Officers&#148;).</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman"'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;text-indent:.5in;text-autospace:none;font-family:"Times New Roman"'>
<b>Summary Compensation Table</b></p>
<div align="left">

<table class=MsoNormalTable border=0 cellpadding=0 width=657
 style='width:98%;border-collapse:collapse'>
 <tr style='height:11.65pt'>
  <td valign=bottom style='padding:1.1pt;
  ' width="22%">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="4%">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">Non-Equity</font></b></p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
 </tr>
 <tr style='height:11.65pt'>
  <td valign=bottom style='padding:1.1pt;
  ' width="22%">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="4%">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">Incentive</font></b></p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
 </tr>
 <tr style='height:21.95pt'>
  <td valign=bottom style='padding:1.1pt;
  ' width="22%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">Name&nbsp;and</font></b></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="4%">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">Salary</font></b></p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">Bonus</font></b></p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">Stock&nbsp;Awards</font></b></p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">Option</font></b></p>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">Awards</font></b></p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">Plan</font></b></p>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">Compensation</font></b></p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">All&nbsp;Other</font></b></p>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">Compensation</font></b></p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">Total</font></b></p>
  </td>
 </tr>
 <tr style='height:11.65pt'>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding:1.1pt; ' width="22%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">Principal&nbsp;Position</font></b></p>
  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding:1.1pt; ' width="4%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">Year</font></b></p>
  </td>
  <td colspan=2 valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding:1.1pt; '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">($)</font></b></p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">($)</font></b></p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">($)(1)</font></b></p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">($)(2)</font></b></p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">($)(3)</font></b></p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">($)(4)</font></b></p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">($)</font></b></p>
  </td>
 </tr>
 <tr style='height:11.7pt'>
  <td valign=bottom style='padding:1.1pt;
  ' width="22%">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="4%">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
 </tr>
 <tr style='height:12.3pt'>
  <td valign=bottom style='padding:1.1pt;
  ' width="22%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:left; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">Mark&nbsp;P.&nbsp;Murphy&nbsp;(5)(8)(9)</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="4%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">2008</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="1%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="7%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">289,823&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="1%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="5%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">-&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="5%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="9%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">117,300&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="1%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="5%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">-&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="5%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="9%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">-&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="4%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="9%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">15,107&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="2%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="7%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">422,230&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:11.7pt'>
  <td valign=bottom style='padding:1.1pt;
  ' width="22%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:left; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">Director,&nbsp;&nbsp;President</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="4%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">2007</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="1%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="7%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">226,673&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="1%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="5%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">-&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="5%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="9%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">156,400&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="1%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="5%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">-&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="5%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="9%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">-&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="4%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="9%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">7,469&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="2%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="7%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">390,542&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:11.65pt'>
  <td valign=bottom style='padding:1.1pt;
  ' width="22%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:left; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">and&nbsp;CEO</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="4%">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
 </tr>
 <tr style='height:11.65pt'>
  <td valign=bottom style='padding:1.1pt;
  ' width="22%">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="4%">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
 </tr>
 <tr style='height:12.35pt'>
  <td valign=bottom style='padding:1.1pt;
  ' width="22%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:left; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">Jeffrey&nbsp;J.&nbsp;Ritchey&nbsp;(6)</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="4%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">2008</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="1%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="7%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">158,701&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="1%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="5%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">-&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="5%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="9%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">-&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="1%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="5%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">5,496&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="5%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="9%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">12,256&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="4%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="9%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">13,778&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="2%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="7%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">190,231&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:11.65pt'>
  <td valign=bottom style='padding:1.1pt;
  ' width="22%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:left; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">Treasurer,&nbsp;CFO</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="4%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">2007</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="1%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="7%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">147,194&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="1%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="5%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">5,300&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="5%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="9%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">-&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="1%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="5%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">8,606&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="5%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="9%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">2,931&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="4%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="9%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">9,641&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="2%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="7%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">173,672&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:11.65pt'>
  <td valign=bottom style='padding:1.1pt;
  ' width="22%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:left; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">and&nbsp;Secretary</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="4%">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
 </tr>
 <tr style='height:11.65pt'>
  <td valign=bottom style='padding:1.1pt;
  ' width="22%">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="4%">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
 </tr>
 <tr style='height:12.35pt'>
  <td valign=bottom style='padding:1.1pt;
  ' width="22%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:left; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">Patrick&nbsp;Johnson&nbsp;(7)</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="4%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">2008</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="1%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="7%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">197,885&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="1%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="5%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">-&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="5%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="9%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">-&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="1%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="5%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">-&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="5%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="9%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">13,461&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="4%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="9%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">16,124&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="2%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="7%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">227,470&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:11.65pt'>
  <td valign=bottom style='padding:1.1pt;
  ' width="22%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:left; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">Executive&nbsp;Vice&nbsp;President</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="4%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">2007</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="1%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="7%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">186,923&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="1%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="5%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">-&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="5%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="9%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">-&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="1%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="5%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">-&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="5%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="9%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">2,250&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="4%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="9%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">11,639&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="2%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="7%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">200,812&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:11.7pt'>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:left; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">Chief&nbsp;Business&nbsp;Dev.&nbsp;Officer</font></p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
 </tr>
</table>

</div>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-indent:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>__________________________</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:.5in;text-indent:-35.3pt; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:.5in;text-indent:-35.3pt; margin-right:0in; margin-top:0in'>&nbsp;</p>

<table border="0" style="border-collapse: collapse" width="100%" id="table1">
	<tr>
		<td valign="top" width="8%"><font size="3" face="Times New Roman">(1)</font></td>
		<td width="1313" valign="top">

<p style='text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>
<font size="3">This column represents the dollar
amount recognized for financial statement reporting purposes with respect to
the years ended June 30, 2007 and 2008 for the fair value of stock awards
granted to each of our Named Executive Officers calculated in accordance with
SFAS 123(R).&nbsp; Pursuant to SEC rules, the amounts shown exclude the impact of
estimated forfeitures related to service-based vesting conditions.&nbsp; For
additional information on the valuation assumptions with respect to the
restricted stock awards, refer to Note 6 of our financial statements in our Annual Report on Form 10-KSB for the years ended June 30, 2007 and 2008, as filed with the SEC.&nbsp; These amounts reflect only our accounting expense for
these stock awards and do not correspond to the actual value that will be
recognized by our Named Executive Officers.&nbsp;
</font></p>

		</td>
	</tr>
</table>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:.5in;text-indent:-35.3pt; margin-right:0in; margin-top:0in'>&nbsp;</p>

<div style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center'>

<p style="text-autospace: none; font-size: 11.0pt; font-family: Times New Roman; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">Page 10</p>
<p style="text-autospace: none; font-size: 11.0pt; font-family: Times New Roman; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&nbsp;</p>

<hr size=2 width="100%" noshade color=navy align=center>

</div>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<font face="Times New Roman">

<br clear=all
style='page-break-before:always'>


</font>


<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<table border="0" style="border-collapse: collapse" width="100%" id="table2">
	<tr>
		<td valign="top" width="8%">
		<p align="justify" style="margin-top: 0; margin-bottom: 0">
		<font size="3" face="Times New Roman">(2)</font></td>
		<td valign="top" width="1318">

<p style='margin-bottom:0;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-top:0'>
<font size="3">This column represents the dollar
amount recognized for financial statement reporting purposes with respect to
the years ended June 30, 2007 and 2008 for the fair value of stock options
granted to each of our Named Executive Officers calculated in accordance with
SFAS 123(R).&nbsp; Pursuant to SEC rules, the amounts shown exclude the impact of
estimated forfeitures related to service-based vesting conditions.&nbsp; For additional
information on the valuation assumptions with respect to these option grants,
refer to Notes 2 and 6 of our financial statements in our Annual Report on Form 10-KSB for the years ended June 30, 2007 and 2008, as filed with the SEC. &nbsp;These amounts reflect only our accounting expense for
these option grants and do not correspond to the actual value that will be
recognized by our Named Executive Officers.&nbsp; See the Outstanding Equity Awards
at June 30, 2007 and 2008 table below for more information on options held by
the Named Executive Officers.&nbsp; Stock options awarded have a term of ten years;
vest in equal annual installments over a period of up to five years, and have an
exercise price equal to the Company&#146;s closing price for its Common Stock on the
Nasdaq Capital Market on the date of grant.</font></p>

		</td>
	</tr>
	<tr>
		<td valign="top" width="8%">
		<p align="justify" style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
		<td valign="top" width="1318">

<p style='margin-bottom:0;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:0'>&nbsp;</p>

		</td>
	</tr>
	<tr>
		<td valign="top" width="8%">
		<p align="justify" style="margin-top: 0; margin-bottom: 0">
		<font size="3" face="Times New Roman">(3)</font></td>
		<td valign="top" width="1318">

<p style='margin-bottom:0;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-top:0'>
<font size="3">In 2008, non-equity incentive plan
compensation payments were made in cash in the second, third and fourth quarters
for first, second and third quarter performance due to the achievement of the
Company&#146;s quarterly internal operating targets. Operating targets were not met
in the remaining fourth quarter and, accordingly, no payments were made
corresponding to such quarter. In 2007, non-equity incentive plan compensation
payments were made in cash in the second quarter for first quarter performance
due to the achievement of the Company&#146;s quarterly internal operating targets.
Operating targets were not met in the remaining three quarters and,
accordingly, no payments were made corresponding to such quarters.</font></p>

		</td>
	</tr>
	<tr>
		<td valign="top" width="8%">
		<p align="justify" style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
		<td valign="top" width="1318">

<p style='margin-bottom:0;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:0'>&nbsp;</p>

		</td>
	</tr>
	<tr>
		<td valign="top" width="8%">
		<p align="justify" style="margin-top: 0; margin-bottom: 0">
		<font size="3" face="Times New Roman">(4)</font></td>
		<td valign="top" width="1318">

<p style='margin-bottom:0;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-top:0'>
<font size="3">All Other Compensation consists
of:</font></p>

		</td>
	</tr>
</table>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<div align="center">

<table class=MsoNormalTable border=0 cellpadding=0 width=474
 style='width:75%;border-collapse:collapse'>
 <tr style='height:34.9pt'>
  <td valign=bottom style='padding:1.1pt;
  ' width="23%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">Name</font></b></p>
  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding:1.1pt; ' width="7%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">Year</font></b></p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">Health&nbsp;insurance</font></b></p>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">and&nbsp;related</font></b></p>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">payments</font></b></p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">Matching&nbsp;contributions</font></b></p>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">to&nbsp;the&nbsp;Company's&nbsp;401(k)</font></b></p>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">plan</font></b></p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">Total&nbsp;($)</font></b></p>
  </td>
 </tr>
 <tr style='height:11.65pt'>
  <td valign=bottom style='padding:1.1pt;
  ' width="23%">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="7%">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
 </tr>
 <tr style='height:11.65pt'>
  <td valign=bottom style='padding:1.1pt;
  ' width="23%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:left; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">Mark&nbsp;P.&nbsp;Murphy</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="7%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">2008</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="1%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="23%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$13,726&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="6%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="19%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$1,381&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="7%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="11%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$15,107&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:11.6pt'>
  <td valign=bottom style='padding:1.1pt;
  ' width="23%">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="7%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">2007</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="1%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="23%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$7,065&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="6%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="19%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$404&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="7%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="11%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$7,469&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:11.65pt'>
  <td valign=bottom style='padding:1.1pt;
  ' width="23%">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="7%">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
 </tr>
 <tr style='height:11.65pt'>
  <td valign=bottom style='padding:1.1pt;
  ' width="23%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:left; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">Jeffrey&nbsp;J.&nbsp;Ritchey</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="7%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">2008</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="1%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="23%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$11,642&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="6%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="19%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$2,136&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="7%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="11%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$13,778&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:11.6pt'>
  <td valign=bottom style='padding:1.1pt;
  ' width="23%">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="7%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">2007</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="1%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="23%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$7,699&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="6%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="19%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$1,942&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="7%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="11%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$9,641&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:11.65pt'>
  <td valign=bottom style='padding:1.1pt;
  ' width="23%">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="7%">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
 </tr>
 <tr style='height:11.65pt'>
  <td valign=bottom style='padding:1.1pt;
  ' width="23%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:left; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">Patrick&nbsp;Johnson</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="7%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">2008</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="1%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="23%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$13,483&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="6%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="19%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$2,641&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="7%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="11%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$16,124&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:11.65pt'>
  <td valign=bottom style='padding:1.1pt;
  ' width="23%">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="7%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">2007</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="1%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="23%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$9,318&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="6%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="19%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$2,321&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="7%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' width="11%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$11,639&nbsp;</font></p>
  </td>
 </tr>
</table>

</div>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-right:.5pt;text-align:center; margin-left:0in; margin-top:0in'>&nbsp;</p>

<table border="0" style="border-collapse: collapse" width="100%" id="table3">
	<tr>
		<td valign="top">
		<p align="justify" style="margin-top: 0; margin-bottom: 0">
		<font size="3">(5)</font></td>
		<td width="1304" valign="top">

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-top:0;margin-bottom:0in;
margin-bottom:0;'><font size="3">Mr. Murphy was elected a Director of the
Company in August, 2002 and commenced employment with the Company as President and Chief Executive Officer in August 2006.</font></p>

		</td>
	</tr>
	<tr>
		<td valign="top">
		<p align="justify" style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
		<td width="1304" valign="top">

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:0;margin-bottom:0in;
margin-bottom:0;'>&nbsp;</p>

		</td>
	</tr>
	<tr>
		<td valign="top">
		<p align="justify" style="margin-top: 0; margin-bottom: 0">
		<font size="3">(6)</font></td>
		<td width="1304" valign="top">

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-top:0;margin-bottom:0in;
margin-bottom:0;'><font size="3">Mr. Ritchey commenced employment with
the Company in August 2001 and was named Treasurer and Chief Financial Officer in July 2002
and Secretary in October 2003.&nbsp; Mr. Ritchey
was appointed interim President and Chief Executive Officer in April 2006 after
the resignation of Mr. Johnson and held those officer positions until the
appointment of the Company&#146;s current President and Chief Executive Officer,
Mark P. Murphy, in August 2006.</font></p>

		</td>
	</tr>
	<tr>
		<td valign="top">
		<p align="justify" style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
		<td width="1304" valign="top">

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:0;margin-bottom:0in;
margin-bottom:0;'>&nbsp;</p>

		</td>
	</tr>
	<tr>
		<td valign="top">
		<p align="justify" style="margin-top: 0; margin-bottom: 0">(7)</td>
		<td width="1304" valign="top">

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:0;margin-bottom:0in;
margin-bottom:0;'>Mr. Johnson commenced employment with
the Company in April&nbsp;2000 and was named President and Chief Executive
Officer in September 2002. Mr. Johnson resigned as President and Chief
Executive Officer in April 2006, at which time he was appointed Executive Vice
President and Chief Business Development Officer. &nbsp;Mr. Johnson resigned as a
Director in October 2006.</p>

		</td>
	</tr>
	<tr>
		<td valign="top">
		<p align="justify" style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
		<td width="1304" valign="top">

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:0;margin-bottom:0in;
margin-bottom:0;'>&nbsp;</p>

		</td>
	</tr>
	<tr>
		<td valign="top">
		<p align="justify" style="margin-top: 0; margin-bottom: 0">(8)</td>
		<td width="1304" valign="top">

<p style='margin-bottom:0;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-autospace:
ideograph-numeric ideograph-other; margin-top:0'>Under
the terms of his employment agreement, on February 21, 2007, Mr. Murphy
received a grant of 340,000 restricted shares of the Company's Common Stock in
replacement of his stock appreciation rights previously awarded upon execution
of such agreement.&nbsp; The restricted shares vest at the rate of 85,000 shares per
year commencing on the grant date which vesting is subject to acceleration upon
certain liquidity events as described under &#147;Employment Agreement with Mark Murphy.&#148;&nbsp; </p>

		</td>
	</tr>
	<tr>
		<td valign="top">
		<p align="justify" style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
		<td width="1304" valign="top">
		<p align="justify" style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
	</tr>
	<tr>
		<td height="26" valign="top">
		<p align="justify" style="margin-top: 0; margin-bottom: 0">(9)</td>
		<td width="1304" height="26" valign="top">

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:0;margin-bottom:0in;
margin-bottom:0;'>Mr. Murphy has $3,750 of director fees
earned prior to his becoming an employee of the Company included in the 2007 Salary
and <a name="_DV_M138"></a>Total. </p>

		</td>
	</tr>
</table>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"'><b>&nbsp;</b></p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"'><b>&nbsp;</b></p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"'><b>&nbsp;</b></p>

<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>Page 11</p>
<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<div style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

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<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"'><b>Employment Agreements and Executive Compensation</b></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:0in;margin-right:.5pt;margin-bottom:0in;
margin-left:71.5pt;margin-bottom:.0001pt;text-indent:-44.0pt'>&nbsp;</p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in'><b>Employment Agreement with Mark P. Murphy</b></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>Mr. Murphy has an employment agreement (&#147;Murphy
Employment Agreement&#148;) with the Company<font size="3"> </font>dated August 14, 2006, and
amended May 15, 2008 concerning his employment as the Company's President and
Chief Executive Officer. Under
the terms of the Murphy
Employment Agreement,
Mr. Murphy is to receive an annual salary of $280,000, subject to annual CPI
adjustment, plus health and life insurance benefits available to all Company
employees. </p>

<p style='text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:.5in;text-autospace:ideograph-numeric ideograph-other; margin-left:0in; margin-right:0in'>In
addition to the foregoing salary and benefits, Mr. Murphy is eligible for
additional compensation if he remains employed by the Company on a full time
basis (&quot;Continuing Employment Status&quot;) including the following: </p>

<p style='text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:.5in;text-autospace:ideograph-numeric ideograph-other; margin-left:0in; margin-right:0in'>An
annual bonus equal to (i) 0.75% of his annual salary, times (ii) each one
percent (or any portion thereof) increases in pre-tax earnings (excluding the
impact of: (a) extraordinary gains and losses as defined by generally accepted
accounting principles, (b) write-downs of goodwill, (c) gains or losses on the
sale of a business or product line, (d) losses due to a force majure, (e)
change in accounting method due to a change in GAAP during its first year of
application, and (f) gains or losses on lawsuits unrelated to the operations of
the business, but including (1) changes in balance sheet accruals for bad
debts, inventory, warranty and other operational estimates, and (2) any other
factor affecting pre-tax income that is not specifically excluded in (a)
through (f) above) per share for fiscal years ending after July 1, 2006 over
the prior fiscal year. The annual bonus shall be payable within ten days after
Mr. Murphy has signed and the Company has filed with the Securities
and Exchange Commission (&#147;SEC&#148;)
the required Chief Executive Officer certifications, without qualification, for
Form 10-KSB (or Form 10-K, as the case may be) for the
most recent fiscal year. Such Continuing Employment Status shall not be
required for additional compensation under the &quot;annual bonus&quot;
benefits in the event that during the period (i) following the conclusion of
the Company's fiscal year and (ii) prior to the Company's filing of Form 10-KSB
(or Form 10-K, as the case may be), his employment is terminated by the Company
without &quot;Cause&quot; or he resigns for &quot;Good Reason,&quot; each as
defined below. If his employment has been terminated by the Company without
Cause prior to the time that he has signed such certifications, or by Mr.
Murphy for Good Reason prior to the time that he has signed such
certifications, the annual bonus shall be payable within thirty (30) days
following the termination of his employment.&nbsp; The actual annual bonus for
fiscal year ending June 30, 2007 shall not exceed $25,000 and shall not exceed
$50,000 for fiscal year ending June 30, 2008.&nbsp; The bonus is not limited for
fiscal years ending after June 30, 2008.&nbsp; There was no annual bonus earned or
paid for the fiscal years ending June 30, 2007 or 2008.&nbsp; </p>

<p style='text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:.5in;text-autospace:ideograph-numeric ideograph-other; margin-left:0in; margin-right:0in'>The
agreement also provides for a second bonus equal to the appreciation of an
aggregate of 450,000 shares of the Company's Common Stock over the closing
price of such number of shares on the day preceding the starting date of his
employment with the Company. Entitlement to this second bonus was to vest at
the rate of 33.333% per year commencing with the first anniversary of such
starting date (subject to acceleration in certain events as described below),
and all or any part of each incremental vested portion was to be exercisable
within five years from the date such increment first vested and payable in cash
in installments.</p>
<p style='text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:.5in;text-autospace:ideograph-numeric ideograph-other; margin-left:0in; margin-right:0in'>The
second bonus may be replaced at the Company's sole option on or before February
28, 2007 with a grant of 340,000 restricted shares of the Company's Common
Stock of the Company in accordance with an equity incentive compensation plan
vesting at the rate of 85,000 shares per year commencing January 2, 2007 or the
grant date, whichever is later. If the restricted stock grant is pursuant to
the Company's general equity incentive plan for its key employees as approved
by the Company's Board of Directors and shareholders, then the Company is
obligated to register such shares with the SEC.&nbsp; The Company replaced the stock
appreciation rights with the restricted stock grant in February, 2007 and
registered the shares with the SEC.</p>
<p style='text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:.5in;text-autospace:ideograph-numeric ideograph-other; margin-left:0in; margin-right:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>Page 12</p>
<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<div style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

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style='page-break-before:always'>


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<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:.5in;text-autospace:ideograph-numeric ideograph-other; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:.5in;text-autospace:ideograph-numeric ideograph-other; margin-left:0in; margin-right:0in'>In
the event of a transaction in which the Company's shareholders receive cash or
marketable securities for their shares of stock of the Company (a
&quot;Liquidity Event&quot;), the vesting of the unvested restricted shares or
portion of the second bonus will accelerate immediately prior to the Liquidity
Event based on the amount received by the Company's shareholders for their
shares: 100% of the unvested&nbsp; restricted shares if the consideration received
by Pro-Dex shareholders is $5 per share or greater; 80% if between $4 and $5;
and 60% if between $3 and $4. </p>

<p style='text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:.5in;text-autospace:ideograph-numeric ideograph-other; margin-left:0in; margin-right:0in'>In
the event Mr. Murphy is terminated involuntarily by the Company without
&quot;Cause&quot; or resigns with &quot;Good Reason&quot; as defined below, the
Company shall pay him his (i) annual salary up through the date of termination
plus (ii) accrued vacation plus (iii) severance equal to $280,000 and (iv) any
annual bonus or second bonus earned but not yet paid as of the termination
date.&nbsp; With the exception of the earned amount of his annual bonus (to be paid
within thirty (30) days of his termination), the severance payment referred to
above shall be made in equal incremental payments over a period of twelve (12)
months from the termination date. </p>

<p style='text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-right:.5pt;text-indent:.5in; margin-left:0in'>The Murphy
Employment Agreement defines &quot;Cause&quot; as termination due to: (i) Mr.
Murphy's failure or inability to perform his duties with the Company or a
related entity; (ii) his failure to substantially follow and comply with the
specific and lawful directives of the Board or any officer of the Company or a
related entity to whom he reports directly; (iii) the Board's determination on
advice of counsel of his commission of an act of fraud or dishonesty; his
engagement in illegal conduct, gross misconduct or an act of moral turpitude;
or his material violation of any material written policy, guideline, code,
handbook or similar document governing the conduct of directors, officers or
employees of the Company or its related entities; or (iv) a material breach by
Mr. Murphy of the terms of the Murphy Employment Agreement. The Murphy
Employment Agreement defines &quot;Good Reason&quot; as: (i) a reduction in Mr.
Murphy's salary or failure of the Company to pay any amount owing to him under
the Murphy Employment Agreement when due; or a material reduction in benefits
provided to him under the Murphy Employment Agreement; (ii) the Company's
requiring him to be based full time in any office or location outside of a
sixty (60) mile radius from his current residence in Yorba Linda, California;
(iii) his being requested by the Board to execute any documents or take any
action in violation of any laws or regulations applicable to the Company,
commit an act of fraud or dishonesty violation of any material written policy,
guideline, code, handbook or similar document governing the conduct of
directors, officers or employees of the Company or its related entities; (iv) a
Liquidity Event, in which he is not offered an executive position with
substantially comparable compensation, benefits and incentives with any
successor to the Company based in any office or location inside a sixty (60)
miles radius from his current residence in Yorba Linda; California; or (v) a
material breach by the Company of the Murphy Employment Agreement.&nbsp; Both the
Company and Mr. Murphy have a 30 day cure period following a notice of
&quot;Cause&quot; or &quot;Good Reason&quot; as the case may be.</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman"'>
<b>Employment Agreement with Patrick L. Johnson</b></p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman"'>Mr. Johnson has an employment agreement (&#147;Johnson
Employment Agreement&#148;) with the Company dated December 4, 2007, concerning his
employment as the Company&#146;s Executive Vice President and Chief Business
Development Officer.&nbsp; Under the terms of the Johnson Employment Agreement, Mr.
Johnson is to receive an annual salary of $180,000, a bonus equal to 7.5% of
base salary if quarterly operating targets are met and an additional 7.5% of
base salary if annual operating targets are met.&nbsp; If targets are exceeded, the
bonus level shall increase by the same percentage increase.&nbsp; If less than 80%
of the target is achieved, the bonus is reduced to zero. Mr. Johnson is
entitled to severance equal to four months of his annual salary if he is
terminated involuntarily.</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman"'>
<b>Employment Agreement with Jeffrey J. Ritchey</b></p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman"'>Mr. Ritchey has an employment agreement (&#147;Ritchey
Employment Agreement&#148;) with the Company dated December 4, 2007, concerning his
employment as the Company&#146;s Chief Financial Officer and Secretary.&nbsp; Under the
terms of the Ritchey Employment Agreement, Mr. Ritchey is to receive an annual
salary of $165,000, a bonus equal to 7.5% of base salary if quarterly operating
targets are met and an additional 7.5% of base salary if annual operating
targets are met.&nbsp; If targets are exceeded, the bonus level shall increase by
the same percentage increase.&nbsp; If less than 80% of the target is achieved, the
bonus is reduced to zero. Mr. Ritchey will also receive an annual stock option
grant of 6,000 shares in accordance with the Company&#146;s Employee Stock Option
Plan, and is entitled to severance equal to four months of his annual salary if
he is terminated involuntarily.</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman"'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>Page 13</p>
<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<div style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

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always'>


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<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"'><b>Outstanding Equity Awards at Fiscal Year End</b></p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman"'>The following table sets forth information about outstanding
equity awards held by our Named Executive Officers as of June 30, 2008.</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;text-autospace:none;font-family:"Times New Roman";font-weight:bold'>Outstanding Equity Awards at June 30, 2008</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";page-break-after:avoid'>&nbsp;</p>

<div align="center">

<table class=MsoNormalTable border=0 cellpadding=0 width=473
 style='width:85%;margin-left:0in;border-collapse:collapse'>
 <tr style='page-break-inside:avoid;height:19.35pt'>
  <td valign=bottom style='padding-left:.05in; padding-right:.05in; padding-top:0in; padding-bottom:0in'>
  <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid;border:medium none;padding:0in; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">&nbsp;</font></p>
  </div>
  </td>
  <td colspan=6 valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in;
  margin-left:0in;margin-right:-.9pt'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";page-break-after:avoid;border:medium none;padding:0in; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">&nbsp;</font></p>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";page-break-after:avoid;border:medium none;padding:0in; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Option Awards</font></p>
  </div>
  </td>
  <td colspan=2 valign=bottom style='padding-left:.05in; padding-right:.05in; padding-top:0in; padding-bottom:0in'>
  <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid;border:medium none;padding:0in; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">Stock Awards</font></p>
  </div>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:43.0pt'>
  <td rowspan=2 valign=bottom style='padding-left:.05in; padding-right:.05in; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding-left:.05in; padding-right:.05in; padding-top:0in; padding-bottom:0in' colspan="2">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">Number<br>
  of<br>
  Securities</font></p>
  </td>
  <td valign=bottom style='padding-left:.05in; padding-right:.05in; padding-top:0in; padding-bottom:0in' colspan="2">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">Number<br>
  of<br>
  Securities</font></p>
  </td>
  <td valign=bottom style='padding-left:.05in; padding-right:.05in; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding-left:.05in; padding-right:.05in; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">&nbsp;</font></p>
  </td>
  <td rowspan=2 valign=bottom style='padding-left:.05in; padding-right:.05in; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">Number<br>
  of Shares<br>
  or Units<br>
  of Stock<br>
  That Have<br>
  Not<br>
  Vested<br>
  (#)</font><sup><font size="2">(2)</font></sup></p>
  </td>
  <td rowspan=2 valign=bottom style='padding-left:.05in; padding-right:.05in; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">Market<br>
  Value of<br>
  Shares or<br>
  Units of<br>
  Stock<br>
  That Have<br>
  Not<br>
  Vested<br>
  ($)</font></p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:5.85pt'>
  <td valign=bottom style='padding-left:.05in; padding-right:.05in; padding-top:0in; padding-bottom:0in' colspan="2">
  <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid;border:medium none;padding:0in; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">Underlying<br>
  Unexercised<br>
  Options<br>
  (#)<br>
  Exercisable </font> <sup><font size="2">(1)</font></sup></p>
  </div>
  </td>
  <td valign=bottom style='padding-left:.05in; padding-right:.05in; padding-top:0in; padding-bottom:0in' colspan="2">
  <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid;border:medium none;padding:0in; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">Underlying<br>
  Unexercised<br>
  Options<br>
  (#)<br>
  Unexercisable</font><sup><font size="2">(1)</font></sup></p>
  </div>
  </td>
  <td valign=bottom style='padding-left:.05in; padding-right:.05in; padding-top:0in; padding-bottom:0in'>
  <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid;border:medium none;padding:0in; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">Option <br>
  Exercise<br>
  Price<br>
  ($)</font></p>
  </div>
  </td>
  <td valign=bottom style='padding-left:.05in; padding-right:.05in; padding-top:0in; padding-bottom:0in'>
  <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid;border:medium none;padding:0in; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">Option<br>
  Expiration<br>
  Date</font></p>
  </div>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:6.0pt;page-break-after:avoid; margin-left:0in; margin-right:0in'>
	<font size="2">Mark P. Murphy</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman";margin-top:6.0pt;page-break-after:avoid; margin-left:0in; margin-right:0in'>
	<font size="2">15,000</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:right;text-autospace:none;font-family:"Times New Roman";margin-top:6.0pt;page-break-after:avoid; margin-left:0in; margin-right:0in'>
	<font size="2">--</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:0in; padding-bottom:0in'>
  &nbsp;</td>
  <td style='padding-left:.05in; padding-right:.05in; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">$2.67</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:6.0pt;text-align:center;
  page-break-after:avoid; margin-left:0in; margin-right:0in'><font size="2">9/29/2014</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:6.0pt;text-align:center;
  page-break-after:avoid; margin-left:0in; margin-right:0in'><font size="2">--</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:6.0pt;text-align:center;
  page-break-after:avoid; margin-left:0in; margin-right:0in'><font size="2">--</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";page-break-after:avoid; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">&nbsp;</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman";page-break-after:avoid; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">15,000</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:right;text-autospace:none;font-family:"Times New Roman";page-break-after:avoid; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">--</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  &nbsp;</td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">$3.24</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">9/28/2015</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">--</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">--</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";page-break-after:avoid; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">&nbsp;</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman";page-break-after:avoid; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">--</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:right;text-autospace:none;font-family:"Times New Roman";page-break-after:avoid; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">--</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  &nbsp;</td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">--</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">--</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">141,667</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">$195,800</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";page-break-after:avoid; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">&nbsp;</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";page-break-after:avoid; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:right;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";page-break-after:avoid; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  &nbsp;</td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid'>&nbsp;</p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid'>&nbsp;</p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid'>&nbsp;</p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";page-break-after:avoid; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">Jeffrey J. Ritchey</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman";page-break-after:avoid; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">20,000</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:right;text-autospace:none;font-family:"Times New Roman";page-break-after:avoid; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">--</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  &nbsp;</td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">$1.12</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">7/31/11</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">--</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">--</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";page-break-after:avoid; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">&nbsp;</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman";page-break-after:avoid; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">20,000</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:right;text-autospace:none;font-family:"Times New Roman";page-break-after:avoid; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">--</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  &nbsp;</td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">$0.81</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">12/31/11</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">--</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">--</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";page-break-after:avoid; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">&nbsp;</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman";page-break-after:avoid; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">60,000</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman";page-break-after:avoid; margin-left:0in; margin-right:0in; margin-top:0in' align="right">
	<font size="2">--</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  &nbsp;</td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">$0.42</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">9/26/12</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">--</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">--</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";page-break-after:avoid; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">&nbsp;</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman";page-break-after:avoid; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">20,000</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman";page-break-after:avoid; margin-left:0in; margin-right:0in; margin-top:0in' align="right">
	<font size="2">--</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  &nbsp;</td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">$2.90</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">5/17/15</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">--</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">--</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";page-break-after:avoid; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">&nbsp;</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman";page-break-after:avoid; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">1,500</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:right;text-autospace:none;font-family:"Times New Roman";page-break-after:avoid; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">4,500</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  &nbsp;</td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">$1.45</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">11/30/16</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">--</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">--</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";page-break-after:avoid; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">&nbsp;</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman";page-break-after:avoid; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">--</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:right;text-autospace:none;font-family:"Times New Roman";page-break-after:avoid; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">6,000</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  &nbsp;</td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">$1.49</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">12/03/17</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">--</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">--</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";page-break-after:avoid; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">&nbsp;</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";page-break-after:avoid; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";page-break-after:avoid'>&nbsp;</p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  &nbsp;</td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid'>&nbsp;</p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid'>&nbsp;</p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid'>&nbsp;</p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";page-break-after:avoid; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">Patrick Johnson</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman";page-break-after:avoid; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">125,000</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:right;text-autospace:none;font-family:"Times New Roman";page-break-after:avoid; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">--</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  &nbsp;</td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">$2.18</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">3/7/10</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">--</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">--</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";page-break-after:avoid; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">&nbsp;</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman";page-break-after:avoid; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">75,000</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:right;text-autospace:none;font-family:"Times New Roman";page-break-after:avoid; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">--</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  &nbsp;</td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">$1.08</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">6/29/11</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">--</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">--</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";page-break-after:avoid; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">&nbsp;</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman";page-break-after:avoid; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">112,500</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:right;text-autospace:none;font-family:"Times New Roman";page-break-after:avoid; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">--</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  &nbsp;</td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">$0.81</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">12/31/11</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">--</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">--</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";page-break-after:avoid; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">&nbsp;</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman";page-break-after:avoid; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">100,000</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:right;text-autospace:none;font-family:"Times New Roman";page-break-after:avoid; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">--</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  &nbsp;</td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">$1.42</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">9/5/12</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">--</font></p>
  </td>
  <td valign=top style='padding-left:.05in; padding-right:.05in; padding-top:2.9pt; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;page-break-after:
  avoid; margin-left:0in; margin-right:0in; margin-top:0in'><font size="2">--</font></p>
  </td>
 </tr>
</table>

</div>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<table border="0" style="border-collapse: collapse" width="100%" id="table4">
	<tr>
		<td valign="top">(1)</td>
		<td width="1331" valign="top">

<p style='text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:0in'>All of Mr. Murphy&#146;s and Mr. Johnson&#146;s
options have vested.&nbsp; Mr. Ritchey&#146;s options vest through December 2011 as
follows:&nbsp; 1,500 at $1.45 in each of December 2008, December 2009 and December
2010 and 1,500 at $1.49 in each of December 2008, December 2009, December 2010
and December 2011.&nbsp;&nbsp; </p>

		</td>
	</tr>
	<tr>
		<td valign="top">&nbsp;</td>
		<td width="1331" valign="top">

<p style='text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:-35.3pt; margin-top:0in'>&nbsp;</p>

		</td>
	</tr>
	<tr>
		<td valign="top">(2)</td>
		<td width="1331" valign="top">

<p style='text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:0in'>Mr. Murphy&#146;s restricted stock grant of
340,000 shares was awarded in February 2007 and 85,000 shares immediately
vested upon grant, leaving 255,000 shares unvested at February 2007.&nbsp; In the sixteen
months from February 2007 through June 2008, an additional 113,333 shares
vested at a rate of 7,083.33 shares per month, leaving 141,667 shares unvested
as of June 30, 2008.</p>

		</td>
	</tr>
</table>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-top:12.0pt'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>Page 14</p>
<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<div style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<font face="Times New Roman">

<br clear=all
style='page-break-before:always'>


</font>


<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'><b><font style="font-size: 12.0pt">Compensation
of Directors</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:12.0pt;text-indent:.5in; margin-left:0in; margin-right:0in'>Directors of the
Company who are not also employees receive a fee of $3,000 per quarter plus
$1,000 per board meeting, plus $750 per each day of committee meetings
attended, together with reasonable expenses of attendance at board meetings and
committee meetings. The Company&#146;s shareholders have approved the 2004 Director
Stock Option Plan pursuant to which non-employee directors may be granted
options to purchase shares of the Company&#146;s Common Stock. In accordance with
the 2004 Director Stock Option Plan&#146;s provisions, the Board of Directors
previously adopted a policy to grant each outside director an initial option to
purchase 20,000 shares of Common Stock on the date of his commencement of
service as a director and an option to purchase 15,000 shares on each
anniversary date of such service, exercisable at the closing price of the
Company&#146;s Common Stock on the Nasdaq Capital Market on the date of such grant.
The maximum term of each option is ten years. The options fully vest after 6
months and expire 90 days from the termination of the director&#146;s service on the
Company&#146;s Board of Directors.</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman";text-indent:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The directors&#146; fees paid in
the fiscal year ended June 30, 2008 are as follows:</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman";text-align:center;text-indent:0in'><b>Director
Compensation</b></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'><b>&nbsp;</b></p>

<div align="center">

<table class=MsoNormalTable border=0 cellpadding=0 width=482
 style='width:75%;border-collapse:collapse'>
 <tr style='height:46.6pt'>
  <td width="39%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">Name</font></b></p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">Fees&nbsp;Earned</font></b></p>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">or&nbsp;Paid</font></b></p>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">in&nbsp;Cash</font></b></p>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">($)</font></b></p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">Option&nbsp;Awards</font></b></p>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">($) (1)</font></b></p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">Total&nbsp;($)</font></b></p>
  </td>
 </tr>
 <tr style='height:11.65pt'>
  <td width="39%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
 </tr>
 <tr style='height:14.35pt'>
  <td width="39%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:left; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">George&nbsp;J.&nbsp;Isaac (2)</font></p>
  </td>
  <td width="8%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td width="13%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">19,250&nbsp;</font></p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td width="14%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">12,278&nbsp;</font></p>
  </td>
  <td width="4%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td width="9%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">31,528&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:11.65pt'>
  <td width="39%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width="39%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:left; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">Mark&nbsp;P.&nbsp;Murphy (3)</font></p>
  </td>
  <td width="8%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td width="13%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">-&nbsp;</font></p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td width="14%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">-&nbsp;</font></p>
  </td>
  <td width="4%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td width="9%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">-&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:11.65pt'>
  <td width="39%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
 </tr>
 <tr style='height:14.35pt'>
  <td width="39%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:left; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">Michael&nbsp;Mesenbrink (4)</font></p>
  </td>
  <td width="8%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td width="13%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">19,250&nbsp;</font></p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td width="14%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">11,874&nbsp;</font></p>
  </td>
  <td width="4%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td width="9%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">31,124&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:11.65pt'>
  <td width="39%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width="39%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:left; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">Valerio&nbsp;Giannini (5)</font></p>
  </td>
  <td width="8%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td width="13%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">19,250&nbsp;</font></p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td width="14%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">10,461&nbsp;</font></p>
  </td>
  <td width="4%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td width="9%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">29,711&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:11.65pt'>
  <td width="39%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width="39%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:left; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">William&nbsp;L.&nbsp;Healey (6)</font></p>
  </td>
  <td width="8%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td width="13%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">6,000&nbsp;</font></p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td width="14%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">14,354&nbsp;</font></p>
  </td>
  <td width="4%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td width="9%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">20,354&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:11.65pt'>
  <td width="39%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
 </tr>
</table>

</div>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:31.5pt;text-indent:2.5pt; margin-right:0in; margin-top:0in'>___________________</p>

<table border="0" style="border-collapse: collapse" width="100%" id="table5">
	<tr>
		<td valign="top">
		<p align="justify" style="margin-top: 0; margin-bottom: 0">
		<font size="3">(1)</font></td>
		<td width="1308" valign="top">

<p style='margin-top:0;margin-bottom:0in;margin-bottom:0;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>
<font size="3">This
column represents the dollar amount recognized for financial statement
reporting purposes with respect to the years ended June 30, 2008 for the fair
value of stock options granted to each of our directors calculated in accordance
with SFAS 123(R).&nbsp; Pursuant to SEC rules, the amounts shown exclude the impact
of estimated forfeitures related to service-based vesting conditions.&nbsp; For
additional information on the valuation assumptions with respect to these
option grants, refer to Notes 2 and 6 of our financial statements.&nbsp; These
amounts reflect only our accounting expense for these option grants and do not
correspond to the actual value that will be recognized by our directors.&nbsp;
During the fiscal year ended June 30, 2008, the Company&#146;s non-employee
Directors, Messrs. Isaac, Mesenbrink, and Giannini, were each granted options
to purchase 15,000 shares of Common Stock, exercisable at share prices of $1.56,
$1.53 and $1.47 per share, respectively.&nbsp; Mr. Healey was granted options to purchase
20,000 shares of Common Stock, exercisable at a per share prices of $1.49.</font></p>

		</td>
	</tr>
	<tr>
		<td valign="top">
		<p align="justify" style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
		<td width="1308" valign="top">

<p style='margin-top:0;margin-bottom:0in;margin-bottom:0;text-align:justify;text-autospace:none;font-family:"Times New Roman";'>&nbsp; </p>

		</td>
	</tr>
	<tr>
		<td valign="top">
		<p align="justify" style="margin-top: 0; margin-bottom: 0">(2)</td>
		<td width="1308" valign="top">

<p style='margin-bottom:0;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:0'>At June 30, 2008, Mr. Isaac held options to
purchase an aggregate of 75,000 shares of Common Stock at a weighted average
exercise price of $1.97 per share, of which 75,000 options were vested.</p>

		</td>
	</tr>
	<tr>
		<td valign="top">
		<p align="justify" style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
		<td width="1308" valign="top">

<p style='margin-bottom:0;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:0'>&nbsp;</p>

		</td>
	</tr>
	<tr>
		<td valign="top">
		<p align="justify" style="margin-top: 0; margin-bottom: 0">(3)</td>
		<td width="1308" valign="top">

<p style='margin-bottom:0;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:0'>At June 30, 2008, Mr. Murphy held options to
purchase an aggregate of 30,000 shares of Common Stock at a weighted average
exercise price of $2.96 per share, of which 30,000 options were vested.</p>

		</td>
	</tr>
	<tr>
		<td valign="top">
		<p align="justify" style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
		<td width="1308" valign="top">

<p style='margin-bottom:0;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:0'>&nbsp;</p>

		</td>
	</tr>
	<tr>
		<td valign="top">
		<p align="justify" style="margin-top: 0; margin-bottom: 0">(4)</td>
		<td width="1308" valign="top">

<p style='margin-bottom:0;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:0'>At June 30, 2008, Mr. Mesenbrink held
options to purchase an aggregate of 95,000 shares of Common Stock at a weighted
average exercise price of $1.74 per share, of which 95,000 options were vested.</p>

		</td>
	</tr>
	<tr>
		<td valign="top">
		<p align="justify" style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
		<td width="1308" valign="top">

<p style='margin-bottom:0;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:0'>&nbsp;</p>

		</td>
	</tr>
	<tr>
		<td valign="top">
		<p align="justify" style="margin-top: 0; margin-bottom: 0">
		<font size="3">(5)</font></td>
		<td width="1308" valign="top">

<p style='margin-bottom:0;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-top:0'>
<font size="3">At June 30, 2008, Mr. Giannini
held options to purchase an aggregate of 75,000 shares of Common Stock at a
weighted average exercise price of $2.04 per share, of which 75,000 options
were vested.</font></p>

		</td>
	</tr>
	<tr>
		<td valign="top">
		<p align="justify" style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
		<td width="1308" valign="top">
		<p align="justify" style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
	</tr>
	<tr>
		<td valign="top">
		<p align="justify" style="margin-top: 0; margin-bottom: 0">
		<font size="3">(6)</font></td>
		<td width="1308" valign="top">
		<p align="justify" style="margin-top: 0; margin-bottom: 0">
		<font size="3">At June 30, 2008, Mr. Healey held
options to purchase an aggregate of 20,000 shares of Common Stock at a weighted
average exercise price of $1.49 per share, of which 20,000 options were vested.</font></td>
	</tr>
</table>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>Page 15</p>
<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<div style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<font face="Times New Roman">

<br clear=all
style='page-break-before:always'>


</font>


<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
<b>EQUITY
COMPENSATION PLAN INFORMATION</b></p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>
<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The following table sets forth information about
the Company&#146;s Common Stock that may be
issued upon the exercise of options under all of the Company&#146;s equity compensation
plans as of June 30, 2008.</font></p>

<div align="center">

<table class=MsoNormalTable border=0 cellpadding=0 width=658
 style='width:90%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid;height:.05pt'>
  <td width="3%" valign=top style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="26%" valign=top style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td valign=top style='padding:1.1pt;
  ' colspan="2">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="5%" valign=top style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="17%" valign=top style='padding:1.1pt;
  ' colspan="2">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="24%" valign=top style='padding:1.1pt;
  ' colspan="2">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
 </tr>
 <tr style='height:12.35pt'>
  <td width="3%" valign=bottom style='border-top:1.0pt solid windowtext;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:medium none;
  padding:1.1pt;'>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="26%" valign=bottom style='border-left:medium none; border-right:medium none; border-bottom:medium none; border-top:1.0pt solid windowtext; padding:1.1pt; '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-bottom:medium none; border-top:1.0pt solid windowtext; padding:1.1pt; ' colspan="2">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=3 valign=bottom style='border-left:medium none; border-right:medium none; border-bottom:medium none; border-top:1.0pt solid windowtext; padding:1.1pt; '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="24%" valign=bottom style='border-top:1.0pt solid windowtext;
  border-left:medium none;border-bottom:medium none;border-right:1.0pt solid windowtext;
  padding:1.1pt;' colspan="2">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>Number&nbsp;of&nbsp;Securities</b></p>
  </td>
 </tr>
 <tr style='height:12.35pt'>
  <td width="3%" valign=bottom style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding:1.1pt; '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="26%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' colspan="2">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>Number&nbsp;of&nbsp;Securities</b></p>
  </td>
  <td colspan=3 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="24%" valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding:1.1pt; ' colspan="2">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>Available&nbsp;for&nbsp;Issuance</b></p>
  </td>
 </tr>
 <tr style='height:12.3pt'>
  <td width="3%" valign=bottom style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding:1.1pt; '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="26%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' colspan="2">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>to&nbsp;be&nbsp;Issued&nbsp;Upon</b></p>
  </td>
  <td colspan=3 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>Weighted&nbsp;Average</b></p>
  </td>
  <td width="24%" valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding:1.1pt; ' colspan="2">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>Under&nbsp;Equity</b></p>
  </td>
 </tr>
 <tr style='height:12.35pt'>
  <td width="3%" valign=bottom style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding:1.1pt; '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="26%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' colspan="2">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>Exercise&nbsp;of</b></p>
  </td>
  <td colspan=3 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>Exercise&nbsp;Price&nbsp;of</b></p>
  </td>
  <td width="24%" valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding:1.1pt; ' colspan="2">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>Compensation&nbsp;Plans</b></p>
  </td>
 </tr>
 <tr style='height:12.35pt'>
  <td width="3%" valign=bottom style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding:1.1pt; '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="26%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' colspan="2">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>Outstanding&nbsp;Options,</b></p>
  </td>
  <td colspan=3 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>Outstanding&nbsp;Options,</b></p>
  </td>
  <td width="24%" valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding:1.1pt; ' colspan="2">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>(excluding&nbsp;services</b></p>
  </td>
 </tr>
 <tr style='height:12.35pt'>
  <td width="3%" valign=bottom style='border-top:medium none;border-left:
  1.0pt solid windowtext;border-bottom:1.0pt solid windowtext;border-right:
  medium none;padding:1.1pt;'>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="26%" valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding:1.1pt; '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>Plan&nbsp;Category</b></p>
  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding:1.1pt; ' colspan="2">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>Warrants&nbsp;and&nbsp;Rights</b></p>
  </td>
  <td colspan=3 valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding:1.1pt; '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>Warrants,&nbsp;and&nbsp;Rights</b></p>
  </td>
  <td width="24%" valign=bottom style='border-top:medium none;border-left:
  medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
  padding:1.1pt;' colspan="2">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>reflected&nbsp;in&nbsp;column&nbsp;(a))</b></p>
  </td>
 </tr>
 <tr style='height:12.3pt'>
  <td width="3%" valign=bottom style='border-top:medium none;border-left:
  1.0pt solid windowtext;border-bottom:1.0pt solid windowtext;border-right:
  medium none;padding:1.1pt;'>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="26%" valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding:1.1pt; '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding:1.1pt; ' colspan="2">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>(a)</p>
  </td>
  <td colspan=3 valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding:1.1pt; '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>(b)</p>
  </td>
  <td width="24%" valign=bottom style='border-top:medium none;border-left:
  medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
  padding:1.1pt;' colspan="2">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>(c)</p>
  </td>
 </tr>
 <tr style='height:12.35pt'>
  <td colspan=2 valign=bottom style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding:1.1pt; '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:left; margin-left:0in; margin-right:0in; margin-top:0in'>Plans&nbsp;Approved&nbsp;by</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' colspan="2">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=3 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="24%" valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding:1.1pt; ' colspan="2">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
 </tr>
 <tr style='height:12.35pt'>
  <td colspan=2 valign=bottom style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding:1.1pt; '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:left; margin-left:0in; margin-right:0in; margin-top:0in'>Stockholders:</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' colspan="2">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td colspan=3 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="18%" valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:medium none windowtext; padding:1.1pt; '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="6%" valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding:1.1pt; '>
  &nbsp;</td>
 </tr>
 <tr style='height:12.35pt'>
  <td width="3%" valign=bottom style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding:1.1pt; '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="26%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:left; margin-left:0in; margin-right:0in; margin-top:0in'>1994&nbsp;Employee&nbsp;Option&nbsp;Plan</p>
  </td>
  <td width="16%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>565,000&nbsp;</p>
  </td>
  <td width="6%" valign=bottom style='padding:1.1pt;
  '>
  &nbsp;</td>
  <td width="5%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>$</p>
  </td>
  <td width="12%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>1.24&nbsp;</p>
  </td>
  <td width="5%" valign=bottom style='padding:1.1pt;
  '>
  &nbsp;</td>
  <td width="18%" valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:medium none windowtext; padding:1.1pt; '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>-&nbsp;</p>
  </td>
  <td width="6%" valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding:1.1pt; '>
  &nbsp;</td>
 </tr>
 <tr style='height:12.35pt'>
  <td width="3%" valign=bottom style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding:1.1pt; '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="26%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:left; margin-left:0in; margin-right:0in; margin-top:0in'>2004&nbsp;Employee&nbsp;Option&nbsp;Plan</p>
  </td>
  <td width="16%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>419,500&nbsp;</p>
  </td>
  <td width="6%" valign=bottom style='padding:1.1pt;
  '>
  &nbsp;</td>
  <td width="5%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>$</p>
  </td>
  <td width="12%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>1.69&nbsp;</p>
  </td>
  <td width="5%" valign=bottom style='padding:1.1pt;
  '>
  &nbsp;</td>
  <td width="18%" valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:medium none windowtext; padding:1.1pt; '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>346,045&nbsp;</p>
  </td>
  <td width="6%" valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding:1.1pt; '>
  &nbsp;</td>
 </tr>
 <tr style='height:12.3pt'>
  <td width="3%" valign=bottom style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding:1.1pt; '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="26%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:left; margin-left:0in; margin-right:0in; margin-top:0in'>1994&nbsp;Director&nbsp;Option&nbsp;Plan</p>
  </td>
  <td width="16%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>65,000&nbsp;</p>
  </td>
  <td width="6%" valign=bottom style='padding:1.1pt;
  '>
  &nbsp;</td>
  <td width="5%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>$</p>
  </td>
  <td width="12%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>1.40&nbsp;</p>
  </td>
  <td width="5%" valign=bottom style='padding:1.1pt;
  '>
  &nbsp;</td>
  <td width="18%" valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:medium none windowtext; padding:1.1pt; '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>-&nbsp;</p>
  </td>
  <td width="6%" valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding:1.1pt; '>
  &nbsp;</td>
 </tr>
 <tr style='height:12.35pt'>
  <td width="3%" valign=bottom style='border-top:medium none;border-left:
  1.0pt solid windowtext;border-bottom:1.0pt solid windowtext;border-right:
  medium none;padding:1.1pt;'>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="26%" valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding:1.1pt; '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:left; margin-left:0in; margin-right:0in; margin-top:0in'>2004&nbsp;Director&nbsp;Option&nbsp;Plan</p>
  </td>
  <td width="16%" valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding:1.1pt; '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>230,000&nbsp;</p>
  </td>
  <td width="6%" valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding:1.1pt; '>
  &nbsp;</td>
  <td width="5%" valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding:1.1pt; '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>$</p>
  </td>
  <td width="12%" valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding:1.1pt; '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>2.15&nbsp;</p>
  </td>
  <td width="5%" valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding:1.1pt; '>
  &nbsp;</td>
  <td width="18%" valign=bottom style='border-top:medium none;border-left:
  medium none;border-bottom:1.0pt solid windowtext;border-right:medium none windowtext;
  padding:1.1pt;'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>130,000&nbsp;</p>
  </td>
  <td width="6%" valign=bottom style='border-top:medium none;border-left:
  medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
  padding:1.1pt;'>
  &nbsp;</td>
 </tr>
 <tr style='height:12.35pt'>
  <td colspan=2 valign=bottom style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding:1.1pt; '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:left; margin-left:0in; margin-right:0in; margin-top:0in'>Plans&nbsp;Not&nbsp;Approved&nbsp;by</p>
  </td>
  <td width="16%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="6%" valign=bottom style='padding:1.1pt;
  '>
  &nbsp;</td>
  <td colspan=3 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="18%" valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:medium none windowtext; padding:1.1pt; '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="6%" valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding:1.1pt; '>
  &nbsp;</td>
 </tr>
 <tr style='height:12.35pt'>
  <td colspan=2 valign=bottom style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding:1.1pt; '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:left; margin-left:0in; margin-right:0in; margin-top:0in'>Stockholders</p>
  </td>
  <td width="16%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="6%" valign=bottom style='padding:1.1pt;
  '>
  &nbsp;</td>
  <td colspan=3 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="18%" valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:medium none windowtext; padding:1.1pt; '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="6%" valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding:1.1pt; '>
  &nbsp;</td>
 </tr>
 <tr style='height:13.75pt'>
  <td width="3%" valign=bottom style='border-top:medium none;border-left:
  1.0pt solid windowtext;border-bottom:1.0pt solid windowtext;border-right:
  medium none;padding:1.1pt;'>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="26%" valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding:1.1pt; '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:left; margin-left:0in; margin-right:0in; margin-top:0in'>Warrants&nbsp;(1)</p>
  </td>
  <td width="16%" valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding:1.1pt; '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>100,000&nbsp;</p>
  </td>
  <td width="6%" valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding:1.1pt; '>
  &nbsp;</td>
  <td width="5%" valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding:1.1pt; '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>$</p>
  </td>
  <td width="12%" valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding:1.1pt; '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>1.25&nbsp;</p>
  </td>
  <td width="5%" valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding:1.1pt; '>
  &nbsp;</td>
  <td width="18%" valign=bottom style='border-top:medium none;border-left:
  medium none;border-bottom:1.0pt solid windowtext;border-right:medium none windowtext;
  padding:1.1pt;'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>-&nbsp;</p>
  </td>
  <td width="6%" valign=bottom style='border-top:medium none;border-left:
  medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
  padding:1.1pt;'>
  &nbsp;</td>
 </tr>
 <tr style='height:12.35pt'>
  <td width="3%" valign=bottom style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding:1.1pt; '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="26%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="16%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="6%" valign=bottom style='padding:1.1pt;
  '>
  &nbsp;</td>
  <td colspan=3 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="18%" valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:medium none windowtext; padding:1.1pt; '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="6%" valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding:1.1pt; '>
  &nbsp;</td>
 </tr>
 <tr style='height:12.35pt'>
  <td width="3%" valign=bottom style='border-top:medium none;border-left:
  1.0pt solid windowtext;border-bottom:1.0pt solid windowtext;border-right:
  medium none;padding:1.1pt;'>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="26%" valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding:1.1pt; '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:left; margin-left:0in; margin-right:0in; margin-top:0in'>Total</p>
  </td>
  <td width="16%" valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding:1.1pt; '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>1,379,500&nbsp;</p>
  </td>
  <td width="6%" valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding:1.1pt; '>
  &nbsp;</td>
  <td width="5%" valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding:1.1pt; '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>$</p>
  </td>
  <td width="12%" valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding:1.1pt; '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>1.56&nbsp;</p>
  </td>
  <td width="5%" valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding:1.1pt; '>
  &nbsp;</td>
  <td width="18%" valign=bottom style='border-top:medium none;border-left:
  medium none;border-bottom:1.0pt solid windowtext;border-right:medium none windowtext;
  padding:1.1pt;'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>476,045&nbsp;</p>
  </td>
  <td width="6%" valign=bottom style='border-top:medium none;border-left:
  medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
  padding:1.1pt;'>
  &nbsp;</td>
 </tr>
</table>

</div>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";font-weight:bold;'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:.5in;text-indent:-.5in;text-autospace:
ideograph-numeric ideograph-other; margin-right:0in; margin-top:0in'>(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
June 30, 2008, warrants to acquire 100,000 shares of Common Stock were
outstanding. These warrants are fully vested, have a weighted-average exercise
price of $1.25 and a weighted-average remaining life of 1.0 years.</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman";text-indent:0in'>
<b><a name="_DV_C233">Options and
Warrants Generally</a></b></p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman"'>For
options and warrants other than those discussed above, the Board of Directors,
as the administrator of the Company&#146;s 1994 and 2004 Employee Stock Option Plans
and the 1994 and 2004 Director Stock Option Plans, has the discretion to
accelerate any outstanding options held by the employees and directors in the
event of an acquisition of the Company by a merger or asset sale in which the
outstanding options under each such plan are not to be assumed by the successor
corporation or substituted with options to purchase shares of such corporation.<a
name="_DV_M154"></a></p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman";text-align:left;text-indent:0in;page-break-after:
avoid'><b>Compensation Philosophy</b> </p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman";text-align:left;text-indent:0.5in;page-break-after:
avoid'>The Company applies a consistent philosophy to compensation for
all employees, including senior management. This philosophy is based on the
premise that the achievements of the Company result from the coordinated
efforts of all individuals working toward common objectives. The Company
strives to achieve those objectives through teamwork that is focused on meeting
the expectations of customers and shareholders.&nbsp; The Compensation Committee has
the sole authority to set all executive officer compensation.&nbsp; The Compensation
Committee receives input from the Chief Executive Officer concerning his
recommendations for executive compensation.&nbsp; The final deliberations and vote
are made outside the presence of the Chief Executive Officer.&nbsp; To date, the
Company has not engaged compensation consultants or persons performing similar
functions.</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman";text-align:left;text-indent:0in;page-break-after:
avoid'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>Page 16</p>
<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<div style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<font face="Times New Roman">

<br clear=all
style='page-break-before:always'>


</font>


<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman"'>The goals of the compensation program are
to align compensation with business objectives and performance, and to enable
the Company to attract, retain and reward executive officers that contribute to
the long-term success of the Company. The Company&#146;s compensation program for
executive officers is based on the same four principles applicable to
compensation decisions for all employees of the Company:</p>

<ul>
	<li>
	<p style='margin-left:0.2in;text-align:justify;text-autospace:none;font-family:"Times New Roman";'>The Company pays competitively. The Company is committed to
providing a pay program that helps attract and retain highly qualified people
in the industry.&nbsp; To ensure that pay is competitive, the Company compares its
pay practices with those of other leading companies of similar size and location(s) and sets its pay parameters based on this review.</p>
	</li>
	<li>
	<p style='text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:0.2in;'>The Company pays for sustained performance. Executive officers
are rewarded based upon corporate performance and individual performance.
Corporate performance is evaluated by the Board of Directors by reviewing the
extent to which strategic and business plan goals are met, including such
factors as revenues, operating profit and cash flow. </p></li>
	<li>
	<p style='text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:0.2in;'>The Company strives for fairness in the administration of pay and
to achieve a balance of the compensation paid to a particular individual with
the compensation paid to other executives both inside the Company and at
comparable companies.</p></li>
	<li>
	<p style='text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:0.2in;'>The Company believes that employees should understand the
performance evaluation and pay administration process. <a name="_DV_M162"></a>
	<a
name="_DV_M163"></a><a name="_DV_M164"></a><a name="_DV_M166"></a>
	<a
name="_DV_M167"></a></p></li>
</ul>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:12.0pt;page-break-after:avoid; margin-left:0in; margin-right:0in'><a
name="_DV_M168"></a><b>Compensation Vehicles</b></p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman"'>The Company has historically used a
compensation program that consists of cash and equity based compensation. The
vehicles are:</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"'>
<u>Salary</u>.  The Company sets base
salary for its employees by reviewing the base salary for competitive positions
in the market in order to attract, retain, and motivate highly talented
individuals at all levels in the organization. </p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"'>
<u>Bonus</u>.&nbsp; The Company utilizes
incentive compensation plans for all employees to reward achievement of key
objectives and goals.</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"'><u>Employee Stock Option Program</u>.
The purpose of this program is to provide additional incentives to selected
employees to work to maximize shareholder value.&nbsp; The Compensation Committee of
the Board of Directors makes all stock option grants.&nbsp; Stock options generally
are granted with an exercise price equal to the fair market value of the
underlying Common Stock on the date of grant and vest in equal annual
installments over a four-year period. </p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"'><u>Stock Appreciation Rights</u>. The purpose of this program
is to provide additional incentives to key management personnel to work to
maximize shareholder value.&nbsp; The Compensation Committee of the Board of
Directors makes all grants of Stock Appreciation Rights.&nbsp; Stock Appreciation
Rights generally are granted with a base price equal to the fair market value
of the underlying Common Stock on the date of grant and vest in equal annual
installments over a three-year period. </p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"'><u>Restricted Stock</u>.&nbsp; The Company utilizes restricted stock
grants to provide additional incentives to &nbsp;key management personnel to work to
maximize shareholder value.&nbsp; The Compensation Committee of the Board of
Directors makes all grants of restricted stock under the terms of one of the
Company&#146;s existing equity plans previously approved by the Company&#146;s
shareholders.&nbsp; Restricted stock grants generally vest over a period of years as
determined by the Compensation Committee.</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>Page 17</p>

<div style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<font face="Times New Roman">

<br clear=all
style='page-break-before:always'>


</font>


<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman";text-align:center;text-indent:0in;page-break-after:
avoid'><b>AUDIT
COMMITTEE REPORT</b></p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman"'>The Audit Committee reports to and acts on
behalf of the Board of Directors in providing oversight to the financial
management, independent auditors, and financial reporting procedures of the
Company.&nbsp; The Company&#146;s management is responsible for preparing the Company&#146;s
financial statements and the independent auditors are responsible for auditing
those statements.&nbsp; In this context, the Audit Committee has reviewed and
discussed the audited financial statements contained in the 2008 Annual Report
on Form 10-KSB with management and the independent auditors.</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman"'>The Audit Committee has discussed with the
independent auditors the matters required to be discussed by the Statement on
Auditing Standards No. 61 (&#147;Communication with Audit Committees&#148;), as amended.&nbsp;
The Audit Committee has received the written disclosures and the letter from
the independent auditors required by applicable
requirements of the Public Company Accounting Oversight Board regarding the
independent accountant&#146;s communications with the audit committee concerning
independence and has discussed with the independent auditors their independence.&nbsp;
In concluding that the auditors are independent, the Audit Committee
considered, among other factors, whether the non-audit services provided by
Moss Adams, LLP were compatible with maintaining their independence. </p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman"'>In reliance on the reviews and discussions
referred to above, the Audit Committee recommended to the Board of Directors
that the audited financial statements be included in the Company&#146;s Annual
Report on Form 10-KSB for the fiscal year ended June 30, 2008, for filing with
the Securities and Exchange Commission.&nbsp; </p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman";page-break-after:avoid'>The Audit
Committee has retained Moss Adams, LLP to serve as the Company&#146;s independent
auditors for the fiscal year ending June 30, 2009.</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman";text-align:center;text-indent:0in;page-break-after:
avoid'><a name="_DV_M180"></a><b>AUDIT COMMITTEE</b></p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman";text-align:center;text-indent:0in;page-break-after:
avoid'><b>&nbsp;</b></p>

<div align="center">
	<table border="0" style="border-collapse: collapse" width="775" id="table6">
		<tr>
			<td valign="bottom" align="center">

<p style='margin-top:0;margin-bottom:0in;margin-bottom:0;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center;'>Valerio L. Giannini</p>
			</td>
			<td valign="bottom" align="center">
			<p style="margin-top: 0; margin-bottom: 0">Michael A. Mesenbrink</td>
			<td valign="bottom" align="center">
			<p style="margin-top: 0; margin-bottom: 0">George J. Isaac</td>
			<td valign="bottom" align="center">
			<p style="margin-top: 0; margin-bottom: 0">William L. Healey</td>
		</tr>
	</table>
</div>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;text-autospace:none;font-family:"Times New Roman";font-weight:bold'>CODE OF BUSINESS CONDUCT AND ETHICS</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:12.0pt;text-indent:.5in; margin-left:0in; margin-right:0in'>Our code of business
conduct and ethics, as approved by our Board of Directors, can be obtained from
our Internet site at http://www.pro-dex.com/code_of_ethics.php.</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:12.0pt;text-indent:.5in; margin-left:0in; margin-right:0in'>We intend to
satisfy the disclosure requirement under Item 5.05 of Form 8-K relating to
amendments to or waivers from provisions of the code that relate to one of more
of the items set forth in Item 406(b) of Regulation S-B and its successor
regulation, by describing on our Internet site, within four business days
following the date of a waiver or a substantive amendment, the date of the
waiver or amendment, the nature of the amendment or waiver, and the name of the
person to whom the waiver was granted.</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:12.0pt;text-indent:.5in; margin-left:0in; margin-right:0in'>Information on
our Internet site is not, and shall not be deemed to be, a part of this proxy
statement or incorporated into any other filings we make with the Securities
and Exchange Commission. </p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;text-autospace:none;font-family:"Times New Roman";font-weight:bold'>SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;page-break-after:avoid;text-autospace:none;font-family:"Times New Roman";text-indent:0.5in'>Under Section
16(a) of the Securities Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;),,
the directors and officers of the Company and any person who owns more than ten
percent of the Company&#146;s Common Stock are required to report their initial
ownership of the Company&#146;s Common Stock and any subsequent changes in that
ownership to the Securities and Exchange Commission (&#147;SEC&#148;) and the Nasdaq
Capital Market. Officers, directors and greater than 10% shareholders are
required by SEC regulations to furnish the Company with copies of all forms
they file in accordance with Section 16(a).&nbsp; Based solely on its review of the
copies of such forms received by it, or written representations from certain
reporting persons that no other reports were required for those persons, the
Company believes that, during the fiscal year ended June 30, 2008, its
officers, directors and greater than 10% shareholders complied with all filing
requirements applicable to such persons.</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;text-autospace:none;font-family:"Times New Roman";font-weight:bold'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>Page 18</p>

<div style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

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style='page-break-before:always'>


</font>


<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>COMMUNICATIONS
WITH DIRECTORS</b></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'><b>&nbsp;</b></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board
has established a process to receive communications from shareholders.
Shareholders and other interested parties may contact any member (or all
members) of the Board, or the independent directors as a group, any Board
committee or any Chair of any such committee by mail or electronically. To
communicate with the Board of Directors, any individual directors or any group
or committee of directors, correspondence should be addressed to the Board of
Directors or any such individual directors or group or committee of directors
by either name or title. All such correspondence should be sent &quot;c/o
Corporate Secretary&quot; at 2361 McGaw Avenue, Irvine, California 92614.&nbsp; To communicate with any of our directors electronically, a shareholder should send an
email to the Company&#146;s Secretary: jeff.ritchey@pro-dex.com. </p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
communications received as set forth in the preceding paragraph will be opened
by the Company&#146;s Secretary for the sole purpose of determining whether the
contents represent a message to one or more of the directors.&nbsp; Any contents
that are not in the nature of advertising, promotions of a product or service,
patently offensive material or matters deemed inappropriate for the Board of
Directors will be forwarded promptly to the addressee. In the case of
communications to the Board or any group or committee of directors, the
Company&#146;s Secretary will make sufficient copies (or forward such information in
the case of e-mail) of the contents to send to each director who is a member of
the group or committee to which the envelope or e-mail is addressed. </p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:.5in; margin-left:0in; margin-right:0in; margin-top:0in'>It is the Company's policy that its
directors are invited and encouraged to attend all of the Company&#146;s annual
meetings of shareholders.&nbsp; All of the directors were in attendance at the 2007 Annual
Meeting.<a name="Y71207PRE14A_HTM_154"></a></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:12.0pt;text-align:center;
page-break-after:avoid; margin-left:0in; margin-right:0in'><b>Proposal No. 2</b></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:12.0pt;text-align:center;
page-break-after:avoid; margin-left:0in; margin-right:0in'><b>GRANTING THE AUTHORITY TO EFFECT A REVERSE STOCK
SPLIT</b></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";background:white; margin-left:0in; margin-right:0in; margin-top:0in'><b>General
</b></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; text-indent:0.5in; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp; Our Board of Directors has approved, and is hereby
soliciting shareholder approval of an amendment to our Articles of Incorporation
to effect a reverse stock split at a ratio of not less than one-for-two and not
more than one-for-five in the form set forth in Appendix&nbsp;A to this proxy
statement (the &#147;Reverse Stock Split Amendment&#148;). A vote FOR this Proposal&nbsp;2
will constitute approval of the Reverse Stock Split Amendment providing for the
combination of any whole number of shares of Common Stock between and including
two and five into one share of Common Stock and will grant our Board of
Directors the authority to select which of the approved exchange ratios within
that range will be implemented. If shareholders approve this proposal, our Board
of Directors will have the authority, but not the obligation, in its sole
discretion and without further action on the part of the shareholders, to
select one of the approved reverse stock split ratios and effect the approved
reverse stock split by filing the Reverse Stock Split Amendment with the
Secretary of State of the State of Colorado at any time after the approval of
the Reverse Stock Split Amendment. If the Reverse Stock Split Amendment has not
been filed with the Secretary of State of the State of Colorado by the close of
business on December&nbsp;31, 2009, the Board of Directors will abandon the
Reverse Stock Split Amendment. Except for any changes as a result of the
treatment of fractional shares, as described below, each shareholder will hold
the same percentage of Common Stock outstanding immediately after the reverse
stock split as such shareholder held immediately prior to the reverse stock
split. &nbsp;</p>
<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; text-indent:0.5in; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; text-indent:0.5in; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>Page 19</p>
<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

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<hr size=2 width="100%" noshade color=navy align=center>

</div>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

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<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;
</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:24.5pt;background:white; margin-left:0in; margin-right:0in; margin-top:0in'>Our Board of Directors believes that shareholder approval of
an exchange ratio range (rather than an exact exchange ratio) provides the Board
with maximum flexibility to achieve the purposes of the reverse stock split. If
the shareholders approve Proposal&nbsp;2, the reverse stock split will be
effected, if at all, only upon a determination by the Board of Directors that
the reverse stock split is in the Company&#146;s and the shareholders&#146; best
interests at that time. In connection with any determination to effect the
reverse stock split, the Board of Directors will set the
time for such a split and select a specific ratio within the range. These
determinations will be made by the Board of Directors with the intention to
create the greatest marketability for our Common Stock based upon prevailing
market conditions at that time.
</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-indent:24.5pt;background:white'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:24.5pt;background:white; margin-left:0in; margin-right:0in; margin-top:0in'>The Board of Directors reserves its right to elect to
abandon the reverse stock split if it determines, in its sole discretion, that
this proposal is no longer in the best interests of the Company and its shareholders.
</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";background:white; margin-left:0in; margin-right:0in; margin-top:0in'><b>&nbsp;</b></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";background:white; margin-left:0in; margin-right:0in; margin-top:0in'><b>Purpose
of the Reverse Stock Split Amendment </b></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp; </p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:24.5pt;background:white; margin-left:0in; margin-right:0in; margin-top:0in'>Our Common Stock currently trades on the Nasdaq Capital
Market under the symbol &#147;PDEX&#148;. The Nasdaq Capital Market has several continued
listing criteria that companies must satisfy in order to remain listed on the
exchange. One of these criteria is that a company&#146;s common stock has a bid
price that is greater than or equal to $1.00 per share. &nbsp;Although Nasdaq
temporarily suspended the minimum $1.00 bid price listing requirement due to
current global market conditions, Nasdaq has indicated that the suspension will
only last until January 16, 2009.&nbsp; The last day our Common Stock bid was above
$1.00 per share was August 6, 2008. &nbsp;Nasdaq has notified us that we fell below
the minimum bid price requirements and provided us an initial period of
180&nbsp;calendar days to regain compliance.&nbsp; Absent any further action by
Nasdaq, if our Common Stock bid price does not meet the requirements, we will
be subject to delisting on June 25, 2009.&nbsp; We currently meet all of the Nasdaq
Capital Market&#146;s continued listing criteria, other than the minimum bid price
requirement were it not currently suspended.&nbsp; We believe that approval of this
proposal would significantly reduce our risk of not meeting the minimum bid
price continued listing standard in the future. </p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-indent:24.5pt;background:white'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:24.5pt;background:white; margin-left:0in; margin-right:0in; margin-top:0in'>The purpose of the reverse stock split is to increase the
per-share trading price of our issued and outstanding Common Stock. Our Board
of Directors intends to effect the proposed reverse stock split only if it
believes that a decrease in the number of shares outstanding is likely to
improve the trading price for our Common Stock, and only if the implementation
of a reverse stock split is determined by the Board of Directors to be in the
best interests of the Company and its shareholders. Our Board of Directors may
exercise its discretion not to implement a reverse stock split. </p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-indent:24.5pt;background:white'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";background:white; margin-left:0in; margin-right:0in; margin-top:0in'><b>Impact
of the Reverse Stock Split Amendment if Implemented </b></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp; </p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:24.5pt;background:white; margin-left:0in; margin-right:0in; margin-top:0in'>If approved and effected, the reverse stock split will be
realized simultaneously and in the same ratio for all of our Common Stock. The
reverse stock split will affect all holders of our Common Stock uniformly and
will not, except in the case of fractional shares, affect any shareholder&#146;s
percentage ownership interest in the Company. As described below, holders of Common
Stock otherwise entitled to a fractional share as a result of the reverse stock
split will receive one whole share of Common Stock in lieu of such fractional
share. In addition, the reverse stock split will not affect any shareholder&#146;s
proportionate voting power (subject to the treatment of fractional shares). </p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp; </p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:24.5pt;background:white; margin-left:0in; margin-right:0in; margin-top:0in'>The principal effects of the Reverse Stock Split Amendment
will be that: </p>
<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:24.5pt;background:white; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width="100%"
 style='width:100.96%' id="table7">
 <tr>
  <td style='width:3%;padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td style='width:2%;padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td style='width:97%;padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='background:white;padding:0in 0in 0in 0in' width="3%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp; </p>
  </td>
  <td valign=top style='background:white;padding:0in 0in 0in 0in' width="2%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&#149;&nbsp; </p>
  </td>
  <td valign=top style='width:97%;background:white;padding:0in; '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>depending on the ratio for the
  reverse stock split selected by our Board of Directors, each two or five
  shares of Common Stock owned by a shareholder, or any whole number of shares
  of Common Stock between two and five as determined by the Board of Directors,
  will be combined into one new share of Common Stock; </p>
  </td>
 </tr>
 <tr>
  <td style='padding:0in 0in 0in 0in' width="3%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp; </p>
  </td>
  <td style='padding:0in 0in 0in 0in' width="2%">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td style='width:97%;padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='background:white;padding:0in 0in 0in 0in' width="3%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp; </p>
  </td>
  <td valign=top style='background:white;padding:0in 0in 0in 0in' width="2%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&#149;&nbsp; </p>
  </td>
  <td valign=top style='width:97%;background:white;padding:0in; '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>the number of shares of Common
  Stock issued and outstanding will be reduced from approximately 9.7 million
  shares to a range of approximately 4.85&nbsp;million shares to 1.94 million
  shares, depending upon the reverse stock split ratio selected by the Board of
  Directors; </p>
  </td>
 </tr>
 <tr>
  <td style='padding:0in 0in 0in 0in' width="3%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp; </p>
  </td>
  <td style='padding:0in 0in 0in 0in' width="2%">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td style='width:97%;padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
 </tr>
</table>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:24.5pt;background:white; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp; </p>

<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>Page 20</p>
<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

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<hr size=2 width="100%" noshade color=navy align=center>

</div>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

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<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp; </p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width="100%"
 style='width:100.0%'>
 <tr>
  <td width="4%" style='width:3%;padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="2%" style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="94%" style='width:94.0%;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='background:white;padding:0in 0in 0in 0in' width="3%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp; </p>
  </td>
  <td valign=top style='background:white;padding:0in 0in 0in 0in' width="2%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&#149;&nbsp; </p>
  </td>
  <td valign=top style='background:white;padding:0in 0in 0in 0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>neither the number of authorized
  shares of Common Stock nor the par value of the Common Stock will be affected
  by the reverse stock split.&nbsp; However, because the number of issued and
  outstanding shares of Common Stock will decrease as result of the reverse
  stock split, the number of authorized but unissued shares of Common Stock
  will increase on a relative basis. These additional shares of
  authorized but unissued Common Stock would be available for issuance at the
  discretion of our Board of Directors from time to time for corporate purposes
  such as raising additional capital and settling outstanding obligations,
  acquisitions of companies or assets and sales of stock or securities
  convertible into or exercisable for Common Stock. We believe that the availability
  of the additional shares would provide us with additional flexibility to meet
  business and financing needs as they arise; </p>
  </td>
 </tr>
 <tr>
  <td style='padding:0in 0in 0in 0in' width="3%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp; </p>
  </td>
  <td style='padding:0in 0in 0in 0in' width="2%">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td style='padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='background:white;padding:0in 0in 0in 0in' width="3%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp; </p>
  </td>
  <td valign=top style='background:white;padding:0in 0in 0in 0in' width="2%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&#149;&nbsp; </p>
  </td>
  <td valign=top style='background:white;padding:0in 0in 0in 0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>based upon the reverse stock
  split ratio selected by our Board of Directors, proportionate adjustments will
  be made to the per share exercise price and/or the number of shares issuable
  upon the exercise or conversion of all outstanding options, restricted stock
  awards, restricted stock units, warrants, convertible or exchangeable
  securities entitling the holders to purchase, exchange for, or convert into,
  shares of Common Stock, which will result in approximately the same aggregate
  price being required to be paid for such options and restricted stock awards
  and units upon exercise immediately preceding the reverse stock
  split;&nbsp;and </p>
  </td>
 </tr>
 <tr>
  <td style='padding:0in 0in 0in 0in' width="3%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp; </p>
  </td>
  <td style='padding:0in 0in 0in 0in' width="2%">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td style='padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='background:white;padding:0in 0in 0in 0in' width="3%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp; </p>
  </td>
  <td valign=top style='background:white;padding:0in 0in 0in 0in' width="2%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&#149;&nbsp; </p>
  </td>
  <td valign=top style='background:white;padding:0in 0in 0in 0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>the number of shares reserved
  for issuance or pursuant to the securities or plans described in the
  immediately preceding bullet will be reduced proportionately based upon the
  reverse stock split ratio selected by our Board of Directors. </p>
  </td>
 </tr>
</table>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;
</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-indent:24.5pt;background:white'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>The table below illustrates the
effect, as of November 7, 2008, of a reverse stock split at certain ratios on
(i)&nbsp;the shares of Common Stock outstanding and reserved for issuance,
(ii)&nbsp;the number of total authorized shares of Common Stock under our Articles
of Incorporation, which is unaffected by the reverse stock split, and
(iii)&nbsp;the resulting number of shares of Common Stock available for
issuance:</p>
<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
<div align="left">

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 style='width:95%;border-collapse:collapse' id="table8">
 <tr style='height:11.65pt'>
  <td width="37%" valign=bottom style='border-top:1.0pt solid windowtext;
  border-left:1.0pt solid windowtext;border-bottom:medium none;border-right:medium none;
  padding:1.1pt;'>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-bottom:medium none; border-top:1.0pt solid windowtext; padding:1.1pt; ' colspan="2">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>Shares&nbsp;of&nbsp;Common</b></p>
  </td>
  <td width="20%" valign=bottom style='border-left:medium none; border-right:medium none; border-bottom:medium none; border-top:1.0pt solid windowtext; padding:1.1pt; ' colspan="2">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="21%" valign=bottom style='border-top:1.0pt solid windowtext;
  border-left:medium none;border-bottom:medium none;border-right:1.0pt solid windowtext;
  padding:1.1pt;' colspan="2">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
 </tr>
 <tr style='height:11.65pt'>
  <td width="37%" valign=bottom style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding:1.1pt; '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' colspan="2">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>Stock&nbsp;Outstanding</b></p>
  </td>
  <td width="20%" valign=bottom style='padding:1.1pt;
  ' colspan="2">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="21%" valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding:1.1pt; ' colspan="2">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
 </tr>
 <tr style='height:11.65pt'>
  <td width="37%" valign=bottom style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding:1.1pt; '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' colspan="2">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>plus&nbsp;Shares&nbsp;of</b></p>
  </td>
  <td width="20%" valign=bottom style='padding:1.1pt;
  ' colspan="2">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="21%" valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding:1.1pt; ' colspan="2">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>Shares&nbsp;of&nbsp;Common</b></p>
  </td>
 </tr>
 <tr style='height:11.65pt'>
  <td width="37%" valign=bottom style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding:1.1pt; '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' colspan="2">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>Common&nbsp;Stock</b></p>
  </td>
  <td width="20%" valign=bottom style='padding:1.1pt;
  ' colspan="2">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>Total&nbsp;Authorized</b></p>
  </td>
  <td width="21%" valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding:1.1pt; ' colspan="2">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>Stock&nbsp;Available&nbsp;for</b></p>
  </td>
 </tr>
 <tr style='height:11.65pt'>
  <td width="37%" valign=bottom style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding:1.1pt; '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' colspan="2">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>Reserved&nbsp;for</b></p>
  </td>
  <td width="20%" valign=bottom style='padding:1.1pt;
  ' colspan="2">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>Shares&nbsp;of&nbsp;Common</b></p>
  </td>
  <td width="21%" valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding:1.1pt; ' colspan="2">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>Issuance&nbsp;(%&nbsp;of</b></p>
  </td>
 </tr>
 <tr style='height:11.7pt'>
  <td width="37%" valign=bottom style='border-top:medium none;border-left:
  1.0pt solid windowtext;border-bottom:1.0pt solid windowtext;border-right:
  medium none;padding:1.1pt;'>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding:1.1pt; ' colspan="2">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>Issuance</b></p>
  </td>
  <td width="20%" valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; padding:1.1pt; ' colspan="2">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>Stock</b></p>
  </td>
  <td width="21%" valign=bottom style='border-top:medium none;border-left:
  medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
  padding:1.1pt;' colspan="2">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>total&nbsp;authorized)</b></p>
  </td>
 </tr>
 <tr style='height:11.65pt'>
  <td width="37%" valign=bottom style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding:1.1pt; '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  ' colspan="2">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="20%" valign=bottom style='padding:1.1pt;
  ' colspan="2">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="21%" valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding:1.1pt; ' colspan="2">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
 </tr>
 <tr style='height:11.65pt'>
  <td width="37%" valign=bottom style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; background:#CCFFFF; padding:1.1pt; '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:left; margin-left:0in; margin-right:0in; margin-top:0in'>Current</p>
  </td>
  <td width="15%" valign=bottom style='background:#CCFFFF;
  padding:1.1pt;'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>9,698,889&nbsp;</p>
  </td>
  <td width="6%" valign=bottom style='background:#CCFFFF;
  padding:1.1pt;'>
  &nbsp;</td>
  <td width="13%" valign=bottom style='background:#CCFFFF;
  padding:1.1pt;'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>50,000,000&nbsp;</p>
  </td>
  <td width="7%" valign=bottom style='background:#CCFFFF;
  padding:1.1pt;'>
  &nbsp;</td>
  <td width="16%" valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; background:#CCFFFF; padding:1.1pt; '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>40,301,111&nbsp;</p>
  </td>
  <td width="4%" valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; background:#CCFFFF; padding:1.1pt; '>
  &nbsp;</td>
 </tr>
 <tr style='height:11.65pt'>
  <td width="37%" valign=bottom style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; background:#CCFFFF; padding:1.1pt; '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="15%" valign=bottom style='background:#CCFFFF;
  padding:1.1pt;'>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="6%" valign=bottom style='background:#CCFFFF;
  padding:1.1pt;'>
  &nbsp;</td>
  <td width="13%" valign=bottom style='background:#CCFFFF;
  padding:1.1pt;'>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="7%" valign=bottom style='background:#CCFFFF;
  padding:1.1pt;'>
  &nbsp;</td>
  <td width="16%" valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; background:#CCFFFF; padding:1.1pt; '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>(80.6%)</p>
  </td>
  <td width="4%" valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; background:#CCFFFF; padding:1.1pt; '>
  &nbsp;</td>
 </tr>
 <tr style='height:11.65pt'>
  <td width="37%" valign=bottom style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding:1.1pt; '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:left; margin-left:0in; margin-right:0in; margin-top:0in'>One-for-two&nbsp;stock&nbsp;split&nbsp;is&nbsp;approved</p>
  </td>
  <td width="15%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>4,849,445&nbsp;</p>
  </td>
  <td width="6%" valign=bottom style='padding:1.1pt;
  '>
  &nbsp;</td>
  <td width="13%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>50,000,000&nbsp;</p>
  </td>
  <td width="7%" valign=bottom style='padding:1.1pt;
  '>
  &nbsp;</td>
  <td width="16%" valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding:1.1pt; '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>45,150,556&nbsp;</p>
  </td>
  <td width="4%" valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding:1.1pt; '>
  &nbsp;</td>
 </tr>
 <tr style='height:11.65pt'>
  <td width="37%" valign=bottom style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding:1.1pt; '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="15%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="6%" valign=bottom style='padding:1.1pt;
  '>
  &nbsp;</td>
  <td width="13%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="7%" valign=bottom style='padding:1.1pt;
  '>
  &nbsp;</td>
  <td width="16%" valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding:1.1pt; '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>(90.3%)</p>
  </td>
  <td width="4%" valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding:1.1pt; '>
  &nbsp;</td>
 </tr>
 <tr style='height:11.65pt'>
  <td width="37%" valign=bottom style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; background:#CCFFFF; padding:1.1pt; '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:left; margin-left:0in; margin-right:0in; margin-top:0in'>One-for-three&nbsp;stock&nbsp;split&nbsp;is&nbsp;approved</p>
  </td>
  <td width="15%" valign=bottom style='background:#CCFFFF;
  padding:1.1pt;'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>3,232,963&nbsp;</p>
  </td>
  <td width="6%" valign=bottom style='background:#CCFFFF;
  padding:1.1pt;'>
  &nbsp;</td>
  <td width="13%" valign=bottom style='background:#CCFFFF;
  padding:1.1pt;'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>50,000,000&nbsp;</p>
  </td>
  <td width="7%" valign=bottom style='background:#CCFFFF;
  padding:1.1pt;'>
  &nbsp;</td>
  <td width="16%" valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; background:#CCFFFF; padding:1.1pt; '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>46,767,037&nbsp;</p>
  </td>
  <td width="4%" valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; background:#CCFFFF; padding:1.1pt; '>
  &nbsp;</td>
 </tr>
 <tr style='height:11.65pt'>
  <td width="37%" valign=bottom style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; background:#CCFFFF; padding:1.1pt; '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="15%" valign=bottom style='background:#CCFFFF;
  padding:1.1pt;'>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="6%" valign=bottom style='background:#CCFFFF;
  padding:1.1pt;'>
  &nbsp;</td>
  <td width="13%" valign=bottom style='background:#CCFFFF;
  padding:1.1pt;'>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="7%" valign=bottom style='background:#CCFFFF;
  padding:1.1pt;'>
  &nbsp;</td>
  <td width="16%" valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; background:#CCFFFF; padding:1.1pt; '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>(93.5%)</p>
  </td>
  <td width="4%" valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; background:#CCFFFF; padding:1.1pt; '>
  &nbsp;</td>
 </tr>
 <tr style='height:11.65pt'>
  <td width="37%" valign=bottom style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding:1.1pt; '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:left; margin-left:0in; margin-right:0in; margin-top:0in'>One-for-four&nbsp;stock&nbsp;split&nbsp;is&nbsp;approved</p>
  </td>
  <td width="15%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>2,424,722&nbsp;</p>
  </td>
  <td width="6%" valign=bottom style='padding:1.1pt;
  '>
  &nbsp;</td>
  <td width="13%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>50,000,000&nbsp;</p>
  </td>
  <td width="7%" valign=bottom style='padding:1.1pt;
  '>
  &nbsp;</td>
  <td width="16%" valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding:1.1pt; '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>47,575,278&nbsp;</p>
  </td>
  <td width="4%" valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding:1.1pt; '>
  &nbsp;</td>
 </tr>
 <tr style='height:11.65pt'>
  <td width="37%" valign=bottom style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; padding:1.1pt; '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="15%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="6%" valign=bottom style='padding:1.1pt;
  '>
  &nbsp;</td>
  <td width="13%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="7%" valign=bottom style='padding:1.1pt;
  '>
  &nbsp;</td>
  <td width="16%" valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding:1.1pt; '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>(95.2%)</p>
  </td>
  <td width="4%" valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; padding:1.1pt; '>
  &nbsp;</td>
 </tr>
 <tr style='height:11.65pt'>
  <td width="37%" valign=bottom style='border-right:medium none; border-top:medium none; border-bottom:medium none; border-left:1.0pt solid windowtext; background:#CCFFFF; padding:1.1pt; '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:left; margin-left:0in; margin-right:0in; margin-top:0in'>One-for-five&nbsp;stock&nbsp;split&nbsp;is&nbsp;approved</p>
  </td>
  <td width="15%" valign=bottom style='background:#CCFFFF;
  padding:1.1pt;'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>1,939,778&nbsp;</p>
  </td>
  <td width="6%" valign=bottom style='background:#CCFFFF;
  padding:1.1pt;'>
  &nbsp;</td>
  <td width="13%" valign=bottom style='background:#CCFFFF;
  padding:1.1pt;'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>50,000,000&nbsp;</p>
  </td>
  <td width="7%" valign=bottom style='background:#CCFFFF;
  padding:1.1pt;'>
  &nbsp;</td>
  <td width="16%" valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; background:#CCFFFF; padding:1.1pt; '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>48,060,222&nbsp;</p>
  </td>
  <td width="4%" valign=bottom style='border-left:medium none; border-top:medium none; border-bottom:medium none; border-right:1.0pt solid windowtext; background:#CCFFFF; padding:1.1pt; '>
  &nbsp;</td>
 </tr>
 <tr style='height:11.7pt'>
  <td width="37%" valign=bottom style='border-top:medium none;border-left:
  1.0pt solid windowtext;border-bottom:1.0pt solid windowtext;border-right:
  medium none;background:#CCFFFF;padding:1.1pt;'>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; background:#CCFFFF; padding:1.1pt; ' colspan="2">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="20%" valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; border-bottom:1.0pt solid windowtext; background:#CCFFFF; padding:1.1pt; ' colspan="2">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="16%" valign=bottom style='border-top:medium none;border-left:
  medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
  background:#CCFFFF;padding:1.1pt;'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>(96.1%)</p>
  </td>
  <td width="4%" valign=bottom style='border-top:medium none;border-left:
  medium none;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
  background:#CCFFFF;padding:1.1pt;'>
  &nbsp;</td>
 </tr>
</table>

</div>
<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:left;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'><b>Certain Risks Associated with the Reverse Stock Split </b></p>
<p style='margin-bottom:.0001pt;text-align:left;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width="100%"
 style='width:100.0%' id="table9">
 <tr>
  <td width="1%" style='width:2%;padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="97%" style='width:97.74%;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="1%" valign=top style='width:2%;background:white;padding:0in; '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&#149;&nbsp; </p>
  </td>
  <td width="97%" valign=top style='width:97.74%;background:white;padding:0in 0in 0in 0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>If the reverse
  stock split is effected and the market price of our Common Stock declines,
  the percentage decline may be greater than would occur in the absence of a
  reverse stock split. The market price of our Common Stock will, however, also
  be based on performance and other factors, which are unrelated to the number
  of shares outstanding. </p>
  </td>
 </tr>
 <tr>
  <td width="1%" style='width:2%;padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td width="97%" style='width:97.74%;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="1%" valign=top style='width:2%;background:white;padding:0in; '>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&#149;&nbsp; </p>
  </td>
  <td width="97%" valign=top style='width:97.74%;background:white;padding:0in 0in 0in 0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>There can be no
  assurance that the reverse stock split will result in any particular price
  for our Common Stock. As a result, the trading liquidity of our Common Stock
  may not necessarily improve and we may not satisfy the Nasdaq Capital Market
  continued listing criteria. </p>
  </td>
 </tr>
</table>

<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>Page 21</p>
<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<div style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<font face="Times New Roman">

<br clear=all
style='page-break-before:always'>


</font>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width="100%"
 style='width:100.0%'>
 <tr>
  <td style='padding:0in 0in 0in 0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp; </p>
  </td>
  <td style='padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td style='padding:0in 0in 0in 0in' width="1372">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='background:white;padding:0in 0in 0in 0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp; </p>
  </td>
  <td valign=top style='background:white;padding:0in 0in 0in 0in' width="2%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&#149;&nbsp; </p>
  </td>
  <td valign=top style='background:white;padding:0in 0in 0in 0in' width="1372">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>There can be no
  assurance that the market price per share of our Common Stock after a reverse
  stock split will increase in proportion to the reduction in the number of
  shares of our Common Stock outstanding before the reverse stock split. For
  example, based on the closing price of our Common Stock on October 28, 2008
  of $0.60 per share, if the reverse stock split were implemented and approved
  for a reverse stock split ratio of one-for-two, there can be no assurance
  that the post-split market price of our Common Stock would be $1.20 or
  greater. Accordingly, the total market capitalization of our Common Stock
  after the reverse stock split may be lower than the total market
  capitalization before the reverse stock split. Moreover, in the future, the
  market price of our Common Stock following the reverse stock split may not
  exceed or remain higher than the market price prior to the reverse stock
  split. </p>
  </td>
 </tr>
 <tr>
  <td style='padding:0in 0in 0in 0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp; </p>
  </td>
  <td style='padding:0in 0in 0in 0in' width="2%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
  </td>
  <td style='padding:0in 0in 0in 0in' width="1372">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='background:white;padding:0in 0in 0in 0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp; </p>
  </td>
  <td valign=top style='background:white;padding:0in 0in 0in 0in' width="2%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&#149;&nbsp; </p>
  </td>
  <td valign=top style='background:white;padding:0in 0in 0in 0in' width="1372">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>Because the
  number of issued and outstanding shares of Common Stock would decrease as
  result of the reverse stock split, the number of authorized but unissued
  shares of Common Stock will increase on a relative basis. If we issue
  additional shares of Common Stock, the ownership interest of our current shareholders
  would be diluted, possibly substantially. </p>
  </td>
 </tr>
 <tr>
  <td style='padding:0in 0in 0in 0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp; </p>
  </td>
  <td style='padding:0in 0in 0in 0in' width="2%">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td style='padding:0in 0in 0in 0in' width="1372">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='background:white;padding:0in 0in 0in 0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp; </p>
  </td>
  <td valign=top style='background:white;padding:0in 0in 0in 0in' width="2%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&#149;&nbsp; </p>
  </td>
  <td valign=top style='background:white;padding:0in 0in 0in 0in' width="1372">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>The proportion
  of unissued authorized shares to issued shares could, under certain
  circumstances, have an anti-takeover effect. For example, the issuance of a
  large block of Common Stock could dilute the stock ownership of a person
  seeking to effect a change in the composition of the Board of Directors or
  contemplating a tender offer or other transaction for the combination of the
  Company with another company. </p>
  </td>
 </tr>
 <tr>
  <td style='padding:0in 0in 0in 0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp; </p>
  </td>
  <td style='padding:0in 0in 0in 0in' width="2%">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td style='padding:0in 0in 0in 0in' width="1372">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='background:white;padding:0in 0in 0in 0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp; </p>
  </td>
  <td valign=top style='background:white;padding:0in 0in 0in 0in' width="2%">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&#149;&nbsp; </p>
  </td>
  <td valign=top style='background:white;padding:0in 0in 0in 0in' width="1372">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>The reverse
  stock split may result in some shareholders owning &#147;odd lots&#148; of less than
  100&nbsp;shares of Common Stock. Odd lot shares may be more difficult to
  sell, and brokerage commissions and other costs of transactions in odd lots
  are generally somewhat higher than the costs of transactions in &#147;round lots&#148;
  of even multiples of 100&nbsp;shares. </p>
  </td>
 </tr>
</table>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;
</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:24.5pt;background:white; margin-left:0in; margin-right:0in; margin-top:0in'>Our Board of Directors intends to effect the reverse stock
split only if it believes that a decrease in the number of shares is likely to
improve the trading price of our Common Stock and if the implementation of the
reverse stock split is determined by the Board of Directors to be in the best
interests of the Company and its shareholders. </p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp; </p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";background:white; margin-left:0in; margin-right:0in; margin-top:0in'><b>Effective
Time </b></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp; </p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:24.5pt;background:white; margin-left:0in; margin-right:0in; margin-top:0in'>The proposed reverse stock split would become effective as
of the date and time (the &#147;Effective Time&#148;) of filing the Reverse Stock Split
Amendment with the office of the Secretary of State of the State of Colorado. Except as explained below with respect to fractional shares, at the Effective
Time, shares of our Common Stock issued and outstanding immediately prior
thereto will be combined, automatically and without any action on the part of
the shareholders, into one share of our Common Stock in accordance with the
reverse stock split ratio determined by our Board of Directors. Assuming this
Proposal 2 is approved by our shareholders, we expect to file the Reverse Stock
Split Amendment, with such split ratio as may be determined by our Board of
Directors with the Secretary of State of the State of Colorado promptly upon a
determination by our Board of Directors that implementation of the reverse
stock split is in the best interests of the Company and our shareholders. </p>
<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:24.5pt;background:white; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:24.5pt;background:white; margin-left:0in; margin-right:0in; margin-top:0in'>After the Effective Time, our Common Stock will have a new
committee on uniform securities identification procedures (&#147;CUSIP&#148;) number,
which is a number used to identify our equity securities, and stock
certificates with the older CUSIP numbers will need to be exchanged for stock
certificates with the new CUSIP numbers by following the procedures described
below. </p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp; </p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:24.5pt;background:white; margin-left:0in; margin-right:0in; margin-top:0in'>After the
Effective Time, we will continue to be subject to periodic reporting and other
requirements of the Exchange Act. Our Common Stock will, assuming we satisfy
the continued listing criteria, continue to be listed on the Nasdaq Capital
Market under the symbol &#147;PDEX&#148;, although Nasdaq will add the letter &#147;D&#148; to the
end of the trading symbol for a period of 20&nbsp;trading days after the
Effective Date to indicate that the reverse stock split has occurred. </p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:24.5pt;background:white; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-indent:24.5pt;background:white'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;
</p>

<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>Page 22</p>
<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<div style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<font face="Times New Roman">

<br clear=all
style='page-break-before:always'>


</font>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";background:white; margin-left:0in; margin-right:0in; margin-top:0in'><b>Board
Discretion to Implement the Reverse Stock Split Amendment </b></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp; </p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:24.5pt;background:white; margin-left:0in; margin-right:0in; margin-top:0in'>If the reverse stock split is approved by our shareholders,
it will be effected, if at all, only upon a determination by our Board of
Directors that a reverse stock split (at a ratio determined by the Board of
Directors as described above) is in the best interests of the Company and the shareholders.
The Board of Directors&#146; determination as to whether the reverse stock split
will be effected and, if so, at what ratio, will be based upon certain factors,
including existing and expected marketability and liquidity of our Common Stock,
prevailing market conditions and the likely effect on the market price of our Common
Stock. If our Board of Directors determines to effect the reverse stock split,
the Board of Directors will consider various factors in selecting the ratio
including the overall market conditions at the time and the recent trading
history of the Common Stock. </p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;
</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";background:white; margin-left:0in; margin-right:0in; margin-top:0in'><b>Fractional
Shares </b></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp; </p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:24.5pt;background:white; margin-left:0in; margin-right:0in; margin-top:0in'>Shareholders will not receive fractional post-reverse stock
split shares in connection with the reverse stock split. Instead, holders of Common
Stock otherwise entitled to a fractional share as a result of the reverse stock
split will receive one whole share of Common Stock in lieu of such fractional
share.</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;
</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";background:white; margin-left:0in; margin-right:0in; margin-top:0in'><b>Effect
on Beneficial Holders of Common Stock (i.e. shareholders who hold in &#147;street
name&#148;) </b></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp; </p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:24.5pt;background:white; margin-left:0in; margin-right:0in; margin-top:0in'>Upon the reverse stock split, we intend to treat shares
held by shareholders in &#147;street name&#148; through a bank, broker or other nominee,
in the same manner as registered shareholders whose shares are registered in
their names. Banks, brokers or other nominees will be instructed to effect the
reverse stock split for their beneficial holders holding our Common Stock in
&#147;street name&#148;. However, these banks, brokers or other nominees may have
different procedures than registered shareholders for processing the reverse
stock split. If a shareholder holds shares of our Common Stock with a bank,
broker or other nominee and has any questions in this regard, shareholders are
encouraged to contact their bank, broker or other nominee. </p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;
</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";background:white; margin-left:0in; margin-right:0in; margin-top:0in'><b>Effect
on Registered &#147;Book-Entry&#148; Holders of Common Stock (i.e. shareholders that are
registered on our transfer agent&#146;s books and records but do not hold stock
certificates) </b></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp; </p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:24.5pt;background:white; margin-left:0in; margin-right:0in; margin-top:0in'>Certain of our registered holders of Common Stock may hold
some or all of their shares electronically in book-entry form with our transfer
agent. These shareholders do not have stock certificates evidencing their
ownership of the Common Stock. They are, however, provided with a statement
reflecting the number of shares registered in their accounts. </p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp; </p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:24.5pt; margin-left:0in; margin-right:0in; margin-top:0in'>If a shareholder
holds registered shares in book-entry form with our transfer agent, no action
needs to be taken to receive post-reverse stock split shares and a transaction
statement will automatically be sent to the shareholder&#146;s address of record
indicating the number of shares of Common Stock held following the reverse
stock split. </p>
<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:24.5pt; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";background:white; margin-left:0in; margin-right:0in; margin-top:0in'><b>Effect
on Certificated Shares </b></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp; </p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:24.5pt;background:white; margin-left:0in; margin-right:0in; margin-top:0in'>Shareholders holding shares of our Common Stock in
certificate form will be sent a transmittal letter by the transfer agent after
the Effective Time. The letter of transmittal will contain instructions on how
a shareholder should surrender his or her certificate(s) representing shares of
our Common Stock (&#147;Old Certificates&#148;) to the transfer agent in exchange for
certificates representing the appropriate number of whole shares of
post-reverse stock split Common Stock (&#147;New Certificates&#148;). No New Certificates
will be issued to a shareholder until such shareholder has surrendered all Old
Certificates, together with a properly completed and executed letter of transmittal,
to the transfer agent. No shareholder will be required to pay a transfer or
other fee to exchange his, her or its Old Certificates. </p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:24.5pt; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>Page 23</p>
<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<div style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<font face="Times New Roman">

<br clear=all
style='page-break-before:always'>


</font>


<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:24.5pt;background:white; margin-left:0in; margin-right:0in; margin-top:0in'>Shareholders will then receive a New Certificate(s)
representing the number of whole shares of Common Stock which they are entitled
as a result of the reverse stock split. Until surrendered, we will deem
outstanding Old Certificates held by shareholders to be cancelled and only to
represent the number of whole shares of post-reverse stock split Common Stock
to which these shareholders are entitled. </p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;
</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:24.5pt;background:white; margin-left:0in; margin-right:0in; margin-top:0in'>Any Old Certificates submitted for exchange, whether
because of a sale, transfer or other disposition of stock, will automatically
be exchanged for New Certificates. If an Old Certificate has a restrictive
legend on the back of the Old Certificate, the New Certificate will be issued
with the same restrictive legends that are on the back of the Old Certificate. </p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp; </p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";background:white; margin-left:0in; margin-right:0in; margin-top:0in'><b>Shareholders
should not destroy any stock certificate(s) and should not submit any stock
certificate(s) to the Company or our transfer agent unless and until requested
to do so. </b></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";background:white; margin-left:0in; margin-right:0in; margin-top:0in'><b>&nbsp;</b></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";background:white; margin-left:0in; margin-right:0in; margin-top:0in'><b>Accounting
Matters </b></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp; </p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:24.5pt;background:white; margin-left:0in; margin-right:0in; margin-top:0in'>The reverse stock split will not affect the number of
shares of Common Stock authorized by our Articles of Incorporation or the par
value of a share of our Common Stock. As a result, as of the Effective Time of
the reverse stock split, the stated capital attributable to Common Stock on our
balance sheet will be reduced proportionately based on the reverse stock split
ratio (including a retroactive adjustment of prior periods), and the additional
paid-in capital account will be credited with the amount by which the stated
capital is reduced. Reported per share net income or loss will be higher
because there will be fewer shares of Common Stock outstanding. </p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";background:white; margin-left:0in; margin-right:0in; margin-top:0in'><b>&nbsp;</b></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";background:white; margin-left:0in; margin-right:0in; margin-top:0in'><b>No Appraisal
Rights </b></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp; </p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:24.5pt;background:white; margin-left:0in; margin-right:0in; margin-top:0in'>Under the Colorado law,
shareholders are not entitled to appraisal rights with respect to the reverse
stock split, and we will not independently provide shareholders with any such
right. </p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";background:white; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;&nbsp; </p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";background:white; margin-left:0in; margin-right:0in; margin-top:0in'><b>Tax
Consequences of the Reverse Stock Split </b></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";background:white; margin-left:0in; margin-right:0in; margin-top:0in'><b><i>&nbsp;</i></b></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:24.5pt;background:white; margin-left:0in; margin-right:0in; margin-top:0in'><b>Holders of our Common Stock are urged to consult with their
own tax advisors as to the tax consequences of the potential reverse stock
split in their particular circumstances, including the applicability and effect
of the alternative minimum tax and any state, local or foreign and other tax
laws and of changes in those laws. </b></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;
</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";background:white; margin-left:0in; margin-right:0in; margin-top:0in'><b>Required
Vote and Board Recommendation </b></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp; </p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:24.5pt;background:white; margin-left:0in; margin-right:0in; margin-top:0in'>The affirmative vote of the holders of a majority of the
outstanding shares of Common Stock entitled to vote at the Annual Meeting will
be required to approve the Reverse Stock Split Amendment. </p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:24.5pt;background:white; margin-left:0in; margin-right:0in; margin-top:0in'><b>&nbsp;</b></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:24.5pt;background:white;text-autospace:
ideograph-numeric ideograph-other; margin-left:0in; margin-right:0in; margin-top:0in'><b>The Board of
Directors unanimously recommends a vote &#147;FOR&#148; the proposal to grant the
authority of the Board of Directors to amend our Articles of Incorporation and potentially
effect a reverse stock split as set forth in Proposal&nbsp;2 above.</b></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:12.0pt;text-align:center;
page-break-after:avoid; margin-left:0in; margin-right:0in'><b>Proposal No. 3</b></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:12.0pt;text-align:center;
page-break-after:avoid; margin-left:0in; margin-right:0in'><b>RATIFICATION OF APPOINTMENT OF INDEPENDENT PUBLIC
ACCOUNTANTS</b></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:12.0pt;text-indent:.5in; margin-left:0in; margin-right:0in'>The Audit Committee of the Company has appointed the firm
of Moss Adams, LLP as the Company&#146;s independent certified public accountants
for the fiscal year ending June 30, 2009, and requests the shareholders to
ratify this appointment.&nbsp; In the event that the shareholders do not ratify the
selection of Moss Adams, LLP as the Company&#146;s independent public accountants,
the Board of Directors will consider the selection of another independent
public accounting firm. </p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:.5in; margin-left:0in; margin-right:0in; margin-top:0in'>A
representative of Moss Adams, LLP is expected to be present at the Annual
Meeting, will have the opportunity to make a statement if such representative
desires to do so, and will be available to respond to appropriate questions. </p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:24.5pt;background:white;text-autospace:
ideograph-numeric ideograph-other; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:24.5pt;background:white;text-autospace:
ideograph-numeric ideograph-other; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>Page 24</p>
<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<div style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<font face="Times New Roman">

<br clear=all style='page-break-before:always'>


</font>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman";text-align:center;text-indent:0in;page-break-after:
avoid'><b>ACCOUNTING FEES</b></p>

<p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'><a name="_DV_M259">
<font size="3"></font></a><font size="3">&nbsp;</font></p>
<p
style='text-align:justify'> <font size="3" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Audit Committee's policy is to pre-approve all auditing services and permitted non-audit services (including the fees and terms thereof) to be performed for the Company by its independent auditor, subject to the de minimis exceptions for non-audit services described in Section 10A(i)(1)(B) of the Exchange Act which are approved by the Audit Committee prior to the completion of the audit.&nbsp; The Audit Committee considers whether the performance of any service by the Company&#146;s independent auditors is compatible with maintaining such auditor&#146;s independence.</font></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Arial Unicode MS";margin:0in;margin-bottom:.0001pt;text-indent:24.5pt'>&nbsp;</p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt;text-align:justify;text-indent:24.5pt; margin-left:0in; margin-right:0in; margin-top:0in'>The following table sets
forth the aggregate fees billed to the Company for the fiscal years ended June
30, 2008 and June 30, 2007 by the Company&#146;s auditors, all of which were
preapproved by the Audit Committee:</p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Arial Unicode MS";margin:0in;margin-bottom:.0001pt;text-align:center;
text-indent:24.5pt'>&nbsp;</p>

<div align="center">

<table class=MsoNormalTable border=0 cellpadding=0 width="65%"
 style='border-collapse:collapse' id="table13">
 <tr style='height:13.05pt'>
  <td valign=bottom style='border-top:medium none;border-left:
  medium none #000000;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
  padding:1.1pt'>
  &nbsp;</td>
  <td colspan=2 valign=bottom style='border-top:1.0pt solid windowtext;
  border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:1pt solid #000000;
  padding:1.1pt' align="center">
  <p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-family:"Times New Roman","serif"; margin-left:0in; margin-right:0in; margin-top:0in'><b>Years&nbsp;ended&nbsp;June&nbsp;30,</b></p>
  </td>
 </tr>
 <tr style='height:13.05pt'>
  <td valign=bottom style='border-top:medium none;border-left:
  1pt solid #000000;border-bottom:medium none windowtext;border-right:1.0pt solid windowtext;
  padding:1.1pt;'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman","serif";text-align:left; margin-left:0in; margin-right:0in; margin-top:0in'>
	Audit&nbsp;Fees&#185;</p>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman","serif";text-align:left; margin-left:0in; margin-right:0in; margin-top:0in'>Audit-Related&nbsp;Fees&#178;</p>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman","serif";text-align:left; margin-left:0in; margin-right:0in; margin-top:0in'>Tax&nbsp;Fees&#179;</p>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman","serif";text-align:left; margin-left:0in; margin-right:0in; margin-top:0in'>All&nbsp;Other&nbsp;Fees
  <sup><font size="2">4</font></sup>&nbsp;</p>
  </td>
  <td valign=bottom style='border-top:1.0pt solid windowtext;
  border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:medium none #000000;
  padding:1.1pt' align="right">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman","serif";text-align:left; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman","serif";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
	<u><b>2008</b></u></p>
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman","serif";margin-left:0in; margin-right:0in; margin-top:0in'>
	$158,000</p>
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman","serif";margin-left:0in; margin-right:0in; margin-top:0in'>
	$0</p>
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman","serif";margin-left:0in; margin-right:0in; margin-top:0in'>
	$59,000</p>
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman","serif";margin-left:0in; margin-right:0in; margin-top:0in'>
	$0</p>
  </td>
  <td valign=bottom style='border-top:1.0pt solid windowtext;
  border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:1pt solid #000000;
  padding:1.1pt' align="right">
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman","serif";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
	<u><b>2007</b></u></p>
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman","serif";margin-left:0in; margin-right:0in; margin-top:0in'>
	$131,000</p>
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman","serif";margin-left:0in; margin-right:0in; margin-top:0in'>
	$2,725</p>
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman","serif";margin-left:0in; margin-right:0in; margin-top:0in'>
	$30,570</p>
  <p style='margin-bottom:.0001pt;text-autospace:none;font-family:"Times New Roman","serif";margin-left:0in; margin-right:0in; margin-top:0in'>
	$0</p>
  </td>
 </tr>
 <tr style='height:13.05pt'>
  <td valign=bottom style='border-top:medium none;border-left:
  1pt solid #000000;border-bottom:1.0pt solid windowtext;border-right:1.0pt solid windowtext;
  padding:1.1pt;'>
  Total</td>
  <td valign=bottom style='border-top:1.0pt solid windowtext;
  border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:medium none #000000;
  padding:1.1pt' align="right">
  $217,000</td>
  <td valign=bottom style='border-top:1.0pt solid windowtext;
  border-left:medium none;border-bottom:1.0pt solid windowtext;border-right:1pt solid #000000;
  padding:1.1pt' align="right">
  $164,295</td>
 </tr>
 </table>

</div>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Arial Unicode MS";margin:0in;margin-bottom:.0001pt;text-align:center;
text-indent:24.5pt'>&nbsp;</p>

<div style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:left'>

<hr size=1 width="18%" noshade color=black align=left>

</div>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt;text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'>(1) <i>Audit Fees</i>
consist of fees billed for professional services rendered for the audit of the
Company&#146;s consolidated annual financial statements and review of the interim
consolidated financial statements included in quarterly reports and services
that are normally provided by Moss Adams LLP, in connection with statutory and
regulatory filings or engagements. </p>

<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman";margin-bottom:.0001pt; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt;text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'>(2) <i>Audit-Related
Fees</i> consist of fees billed for assurance and related services that are
reasonably related to the performance of the audit or review of the Company&#146;s
consolidated financial statements and are not reported under &#147;Audit Fees.&#148; This
category includes fees related to the filing of the S-8 registration statement
for the 2004 Restated Stock Option Plan; and consultation regarding accounting
or disclosure treatment of transactions or events and/or the actual or
potential impact of final or proposed rules, standards or interpretation by the
SEC, FASB or other regulatory or standard-setting bodies as well as general
assistance with implementation of the requirements of SEC rules or listing
standards promulgated pursuant to the Sarbanes&#150;Oxley Act of 2002. </p>

<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman";margin-bottom:.0001pt; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt;text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'>(3) <i>Tax Fees</i>
consist of fees billed for professional services rendered for tax compliance,
tax advice and tax planning. These services include assistance regarding
federal state and local tax compliance, planning and advice. </p>

<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman";margin-bottom:.0001pt; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt;text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'>(4) <i>All Other Fees</i>
consist of fees for products and services other than the services reported
above.</p>
<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt;text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman";text-align:left;text-indent:0in;page-break-after:
avoid'><b>Required Vote and Board Recommendation</b></p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman";page-break-after:avoid'>Although shareholder ratification is not required
for the appointment of Moss Adams, LLP as the Company&#146;s independent public
accountants for the fiscal year ending June
30, 2009, the Board of Directors has directed that this appointment be
submitted to the Company&#146;s shareholders for ratification at the Annual Meeting.&nbsp; Assuming
the holders of shares entitled to cast
a majority of the <a name="_DV_C92">total votes of the outstanding
shares of stock entitled to vote on this proposal, represented in person or by
proxy, are present at the Annual Meeting, this proposal will be ratified and
approved if the votes cast in favor of this proposal exceed the votes cast
opposing this proposal.&nbsp; Abstentions and broker non-votes will be counted for
purposes of determining whether a quorum is present for this proposal, but will
not be included in the vote totals for this proposal and, therefore, will have
no effect on the vote</a>.</p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt;text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt;text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>Page 25</p>
<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<div style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

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style='page-break-before:always'>


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<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'><b>&nbsp;</b></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:.5in; margin-left:0in; margin-right:0in; margin-top:0in'>
<b>THE BOARD
OF DIRECTORS RECOMMENDS THAT THE SHAREHOLDERS VOTE &#147;FOR&#148; THE RATIFICATION OF
THE APPOINTMENT OF MOSS ADAMS, LLP TO SERVE AS THE COMPANY&#146;S INDEPENDENT PUBLIC
ACCOUNTANTS FOR THE FISCAL YEAR ENDING JUNE&nbsp;30,&nbsp;2009.</b><a
name="_DV_M274"></a></p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-indent:.5in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>ANNUAL REPORT</b></p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman"'>The Company&#146;s Annual Report containing
audited financial statements for the fiscal year ended June 30, 2008 accompanies
this proxy statement.&nbsp; Such report is not incorporated herein and is not deemed
to be a part of this proxy solicitation material.</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;text-autospace:none;font-family:"Times New Roman";font-weight:bold'><a name="_DV_M276"></a>PROPOSALS OF SHAREHOLDERS</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman"'>Pursuant to Rule 14a-8 of the Securities and
Exchange Commission, proposals by shareholders which are intended for inclusion
in the Company&#146;s proxy statement and proxy card and to be presented at the
Company&#146;s next annual meeting must be received by the Company by July 31, 2009,
in order to be considered for inclusion in the Company&#146;s proxy materials. Such
proposals should be addressed to the Company&#146;s Secretary and may be included in
next year&#146;s proxy materials if they comply with certain rules and regulations
of the Securities and Exchange Commission governing shareholder proposals.<u> </u>Proposals by shareholders at
the Company&#146;s 2008 Annual Shareholders&#146; Meeting that are not intended for
inclusion in the Company&#146;s proxy materials must also be received by the
Company&#146;s Secretary no later than October 14, 2009.&nbsp; Every shareholder notice
must also comply with certain other requirements set forth in the Company&#146;s
Bylaws, a copy of which may be obtained by written request delivered to the
Company&#146;s Secretary.</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;text-autospace:none;font-family:"Times New Roman";font-weight:bold'><a name="_DV_M278"></a>OTHER MATTERS</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman"'>The Board of Directors knows of no other
matters which will be acted upon at the Annual Meeting. If any other matters
are presented properly for action at the Annual Meeting or at any adjournment
or postponement thereof, it is intended that the proxy will be voted with
respect thereto in accordance with the best judgment and in the discretion of
the proxy holder.</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman"'><b>THE COMPANY&#146;S SHAREHOLDERS ARE URGED TO
PROMPTLY SUBMIT THEIR PROXY OR VOTING
INSTRUCTIONS AS SOON AS POSSIBLE BY FOLLOWING THE INSTRUCTIONS IN THE NOTICE OF
INTERNET AVAILABILITY OF PROXY MATERIALS, WHICH WAS MAILED TO YOU ON OR ABOUT NOVEMBER
28, 2008.&nbsp; IF YOU REQUEST PRINTED COPIES OF THE PROXY MATERIALS BY MAIL, YOU
CAN ALSO VOTE BY MAIL OR BY TELEPHONE.</b></p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman"'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:12.0pt;margin-right:0in;
margin-bottom:0in;margin-left:3.5in;margin-bottom:.0001pt;text-align:left;
'>&nbsp;By Order of the Board of Directors,<br>
<br>
PRO-DEX, INC.<br>
<br>
/s/ Jeffrey J. Ritchey<br>
Corporate Secretary<a name="_DV_M282"></a></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:12.0pt;margin-bottom:0in;margin-left:3.5in;margin-bottom:.0001pt;text-align:left;
'>Santa Ana, California<br>
November 20, 2008</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman"'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"'>SHAREHOLDERS
MAY OBTAIN FREE OF CHARGE A PAPER COPY OF THE COMPANY&#146;S ANNUAL REPORT ON FORM
10-KSB FOR THE FISCAL YEAR ENDED <a name="_DV_C330">JUNE</a>
30, 2008, (WITHOUT EXHIBITS) AS FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION BY WRITING TO:&nbsp; INVESTOR RELATIONS, PRO-DEX, INC., 2361 McGaw
Avenue, Irvine, CALIFORNIA 92614 OR CALLiNG (949) 769-3200.</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman"'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>Page 26</p>
<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<div style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

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style='page-break-before:always'>


</font>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:12.0pt; margin-left:0in; margin-right:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'><b>APPENDIX A</b></p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:0in;text-align:center'><b>&nbsp;</b></p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:0in;text-align:center'><b>&nbsp;</b></p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:0in;text-align:center'><b>ARTICLES
OF AMENDMENT</b></p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:0in;text-align:center'><b>TO
THE</b></p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:0in;text-align:center'><b>ARTICLES
OF INCORPORATION</b></p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:0in;text-align:center'><b>OF</b></p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:0in;text-align:center'><b>PRO-DEX,
INC.</b></p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-top:0in;text-align:center'><b>&nbsp;</b></p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman"'>Pursuant to the provisions of the Colorado Business Corporation
Act, Pro-Dex, Inc. hereby adopts the following Articles of Amendment to its
Articles of Incorporation:</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman";margin-left:.5in;text-indent:0in'>FIRST:&nbsp; The name of the
corporation is Pro-Dex, Inc.</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman"'>SECOND:&nbsp; The following paragraph shall be inserted immediately
following the first paragraph of Article 3 of the Articles of Incorporation of
Pro-Dex, Inc.:</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman";margin-top:12.0pt;margin-right:.5in;margin-bottom:0in;
margin-left:.5in;margin-bottom:.0001pt'>Upon the filing of these Articles of
Amendment to the Articles of Incorporation, each _______ (__) issued and
outstanding shares of Common Stock at such time shall be automatically
reclassified and changed into one (1) share of Common Stock, without any action
by the holder thereof; provided, however, that fractional shares shall be
rounded up to the nearest whole share.&nbsp; These Articles of Amendment to the
Articles of Incorporation will not affect the number or the par value of
authorized shares.</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-family:"Times New Roman"'>THIRD:&nbsp; The foregoing amendment to the Articles of Incorporation
of Pro-Dex, Inc. was adopted on ____________, 200__, as prescribed by the
Colorado Business Corporation Act, by a vote of the shareholders of the
corporation. The number of shares voted for the amendment was sufficient for
approval.</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-top:12.0pt;margin-right:.5in;margin-bottom:0in;
margin-left:.5in;margin-bottom:.0001pt'>&nbsp;</p>

<table border="0" style="border-collapse: collapse" width="100%" id="table10">
	<tr>
		<td width="470" nowrap>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>Date: _________, 2008</p>

		</td>
		<td nowrap>&nbsp;</td>
	</tr>
	<tr>
		<td width="470" nowrap>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

		</td>
		<td nowrap> <u>/s/
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mark P. Murphy</u>_______</td>
	</tr>
	<tr>
		<td width="470" nowrap>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

		</td>
		<td nowrap>Mark P. Murphy</td>
	</tr>
	<tr>
		<td width="470" nowrap>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

		</td>
		<td nowrap>Chief Executive Officer</td>
	</tr>
	<tr>
		<td width="470" nowrap>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>

		</td>
		<td nowrap>&nbsp;</td>
	</tr>
	<tr>
		<td width="470" nowrap>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>Date: _________, 2008</p>

		</td>
		<td nowrap>&nbsp;</td>
	</tr>
	<tr>
		<td width="470" nowrap>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

		</td>
		<td nowrap> <u>/s/
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JEFFREY J. RITCHEY</u>_______</td>
	</tr>
	<tr>
		<td width="470" nowrap>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

		</td>
		<td nowrap>Jeffrey J. Ritchey</td>
	</tr>
	<tr>
		<td width="470" nowrap>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
		</td>
		<td nowrap>Chief Financial Officer</td>
	</tr>
</table>
<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
Page 27</p>
<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<div style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<font face="Times New Roman">

<u><br clear=all style='page-break-before:always'>
</u>

</font>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>THIS PROXY IS
SOLICITED BY THE BOARD OF DIRECTORS</b></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>ANNUAL MEETING OF
SHAREHOLDERS </b></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>TO BE HELD JANUARY
9, 2009 </b></p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>The undersigned hereby appoints George J. Isaac and William
L. Healey, and each of them, individually, as attorneys and proxies, with full
power of substitution, to represent and vote, as designated below, all shares
of Common Stock of Pro-Dex, Inc. held of record by the undersigned on November
7, 2008, at the Annual Meeting of Shareholders to be held at the Pro-Dex
company Headquarters, 2361 McGaw Avenue, Irvine, California 92614 on January 9,
2009, at 8:00&nbsp;a.m., local time, and at any and all adjournments or
postponements thereof.</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:81.0pt;text-indent:-81.0pt; margin-right:0in; margin-top:0in'>Proposal No. 1.&nbsp;&nbsp;&nbsp; To
elect four persons to serve as directors of the Company as follows (check one
box):</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:35.0pt;text-indent:-17.0pt; margin-right:0in; margin-top:0in'>&nbsp;</p>

<table class=MsoNormalTable border=0 cellpadding=0
 style='border-collapse:collapse' width="95%">
 <tr>
  <td valign=top style='padding:0in; ' width="715">
  <p style='text-align:justify;text-autospace:none;font-family:"Times New Roman"; '>FOR [___]<br>
	approval of the
  election of the nominees listed below (except as marked to the contrary
  below). </p>
  </td>
  <td valign=top style='padding:0in; '>
  <p style='text-align:justify;text-autospace:none;font-family:"Times New Roman"; '>WITHHOLD AUTHORITY [____]<br>
	to vote for the
  nominees listed below. </p>
  </td>
  <td width=2 valign=top style='width:1.75pt;padding:0in 0in 0in 0in'>
  <p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
  </td>
 </tr>
</table>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<table border="0" style="border-collapse: collapse" width="100%" id="table14">
	<tr>
		<td align="center">

<p style='margin-bottom:0;text-autospace:none;font-family:"Times New Roman";margin-top:0'>
George J. Isaac</p></td>
		<td align="center">
		<p style="margin-top: 0; margin-bottom: 0">William L. Healey</td>
		<td align="center">
		<p style="margin-top: 0; margin-bottom: 0">Michael J. Berthelot</td>
		<td align="center">
		<p style="margin-top: 0; margin-bottom: 0">David Holder</td>
	</tr>
</table>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:35.0pt;text-indent:-18.5pt'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:81.0pt;text-indent:-81.0pt; margin-right:0in; margin-top:0in'>Proposal No.
2.&nbsp;&nbsp;&nbsp; To approve the authority for the Board of Directors to potentially effect
a reverse stock split when and if deemed to be in the best interest of the shareholder
(circle one). </p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center'>
<font size="3">FOR &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AGAINST&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
ABSTAIN</font></p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:81.0pt;text-indent:-81.0pt; margin-right:0in; margin-top:0in'>Proposal No. 3.&nbsp;&nbsp;&nbsp; To
ratify the appointment of Moss Adams, LLP as the Company&#146;s independent auditors
for the fiscal year ending June 30, 2009 (circle one). </p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center'>
<font size="3">FOR &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AGAINST&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
ABSTAIN</font></p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:81.0pt;text-indent:-81.0pt; margin-right:0in; margin-top:0in'>Proposal No. 4.&nbsp;&nbsp;&nbsp; In
their discretion, the proxies are authorized to vote upon such other business
as may properly come before the meeting or any adjournment or postponement
thereof. </p>
<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:81.0pt;text-indent:-81.0pt; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:0.5in; margin-left:0in; margin-right:0in; margin-top:0in'>This proxy, when properly executed,
will be voted in the manner directed herein by the undersigned shareholder. &nbsp;If
no direction is made, this proxy will be voted &#147;FOR&#148; all Proposals.</p>
<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:0.5in; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-indent:0.5in; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
Page 28</p>
<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<div style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";text-align:center'>

<hr size=2 width="100%" noshade color=navy align=center>

</div>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<font face="Times New Roman">

<br clear=all
style='page-break-before:always'>


</font>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:81.0pt;text-indent:-81.0pt; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:0in; margin-right:0in; margin-top:0in'>
<b>PLEASE MARK, SIGN, DATE
AND RETURN THIS PROXY PROMPTLY USING THE ENCLOSED ENVELOPE. </b></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:3.5in;text-align:left; margin-right:0in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:3.5in;text-align:left; margin-right:0in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:3.5in;text-align:left; margin-right:0in; margin-top:0in'>Dated:_______________,
2008/2009 <br>
<br>
</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:3.5in; margin-right:0in; margin-top:0in'>Name: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u><br>
<br>
</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:3.5in; margin-right:0in; margin-top:0in'>Common Shares: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:3.5in; margin-right:0in; margin-top:0in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:3.5in; margin-right:0in; margin-top:0in'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;</u></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:3.5in; margin-right:0in; margin-top:0in'>Signature </p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:3.5in'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:3.5in; margin-right:0in; margin-top:0in'><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;</u></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";margin-left:3.5in; margin-right:0in; margin-top:0in'>Signature (if jointly held) </p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";margin-left:153.0pt;text-indent:-9.0pt'>&nbsp;</p>

<p style='margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-family:"Times New Roman";text-align:left;margin-left:3.5in; margin-right:0in; margin-top:0in'>Please
sign exactly as name appears in the records of Pro-Dex, Inc. When shares are
held by joint tenants, both should sign. When signing as attorney, as executor,
administrator, trustee or guardian, please give full title as such. If a
corporation, please sign in full corporate name by President or other
authorized officer. If a partnership, please sign in partnership name by
authorized person. </p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin-bottom:.0001pt;text-align:center;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
Page 29</p>

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`
end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
