-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 OSxIiHoZb8/hWdWCSGkODsBQ04GwRG6fcAarcwhzIy6tsRU+f0fTRvireZrLcJ8o
 DduhK/AoiuTgUdq+xvMscA==

<SEC-DOCUMENT>0001003297-08-000224.txt : 20081028
<SEC-HEADER>0001003297-08-000224.hdr.sgml : 20081028
<ACCEPTANCE-DATETIME>20081027182402
ACCESSION NUMBER:		0001003297-08-000224
CONFORMED SUBMISSION TYPE:	10KSB/A
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20080630
FILED AS OF DATE:		20081028
DATE AS OF CHANGE:		20081027

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:		10KSB/A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-14942
		FILM NUMBER:		081143186

	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>10KSB/A
<SEQUENCE>1
<FILENAME>es10k-aoct2008.htm
<TEXT>
<html>

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



<title>PRO DEX INC</title>



</head>

<body lang=EN-US link=blue vlink=purple style='text-justify-trim:punctuation'>

<div style='page:Section1;'>

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

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

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

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

  <h4 style='margin:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:12.0pt;font-family:"Times New Roman","serif";font-weight:normal;'><b><font style="font-size: 14.0pt">UNITED STATES </font></b></h4>
  <h4 style='margin:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:12.0pt;font-family:"Times New Roman","serif";font-weight:normal;'><b><font style="font-size: 14.0pt">SECURITIES AND EXCHANGE COMMISSION</font></b></h4>
  <h5 style='margin-top:12.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;font-size:13.0pt;font-family:"Times New Roman","serif";font-weight:bold;margin-top:0in;text-align:center'>Washington, D.C. 20549</h5>
  <h6 style='margin-top:12.0pt;margin-right:0in;margin-bottom:3.0pt;margin-left:0in;font-size:11.0pt;font-family:"Times New Roman","serif";font-weight:bold;text-align:center'><font style="font-size: 20.0pt">FORM
  10-KSB/A<br>
  AMENDMENT NO. 1</font></h6>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'><b><font style="font-size: 14.0pt">&nbsp;</font></b></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.75in;text-indent:-.75in;text-autospace:
  none'><b>[X]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  ANNUAL REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF
1934.</b></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'><b>&nbsp;</b></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'><b>For
  the fiscal year ended June 30, 2008</b></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b><font style="font-size: 6.0pt">&nbsp;</font></b></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b>OR</b></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'><b>&nbsp;</b></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.75in;text-indent:-.75in;text-autospace:
  none'><b>[&nbsp;
  ]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF
1934.&nbsp;&nbsp; FOR THE TRANSITION PERIOD FROM&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>TO&nbsp;
  <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; .</u></b></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'><b>&nbsp;</b></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'><b>&nbsp;</b></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'><b>Commission
  File Number&nbsp;&nbsp;&nbsp; 0-14942 </b></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'><b><font style="font-size: 10.0pt">&nbsp;</font></b></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'><b><font style="font-size: 24.0pt">PRO-DEX, INC.&nbsp;&nbsp;&nbsp; </font></b></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'><b><font style="font-size: 10.0pt">&nbsp;</font>(Name
  of small business issuer in its charter)&nbsp;&nbsp;&nbsp;&nbsp; </b></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'><b><font style="font-size: 10.0pt">&nbsp;</font></b></p>
  <div align="center">
  <table border="0" width="775">
	<tr>
		<td width="374">
  <p style='margin-bottom:0;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none; margin-top:0'><b><u>Colorado </u></b></p>
  		</td>
		<td>
  <p style='margin-bottom:0;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none; margin-top:0'><b><u>84-1261240
  </u></b></p>
  		</td>
	</tr>
	<tr>
		<td width="374">
  <p style='margin-bottom:0;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none; margin-top:0'><b>(State
  or other jurisdiction of</b></p>
  		</td>
		<td>
		<p align="center" style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman,serif"><b>(I.R.S.
  Employer Identification No.) </b></font></td>
	</tr>
	<tr>
		<td width="374">
  <p style='margin-bottom:0;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none; margin-top:0'><b>incorporation
  or organization)</b></p>
  		</td>
		<td>&nbsp;</td>
	</tr>
</table>
  </div>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'><b>&nbsp;&nbsp; </b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none' align="center">
<b><u>2361 McGaw Avenue, Irvine, California&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 92614</u></b></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'><b><font style="font-size: 10.0pt">&nbsp;</font>(Address
  of principal executive offices)&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Zip
  Code)</b></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'><b><font style="font-size: 10.0pt">&nbsp;</font></b></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'><b>Issuer's
  telephone number: (<u>949) 769-3200 </u></b></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'><b><font style="font-size: 10.0pt">&nbsp;</font></b></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'><b>Securities
  registered under Section 12(b) of the Exchange Act: </b></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'><b><font style="font-size: 7.0pt">&nbsp;</font></b></p>
  <div align=center>
  <table class=MsoNormalTable border=0 cellpadding=0
   style='border-collapse:collapse' width="50%">
   <tr>
    <td valign=top style='padding:0in; '>
    <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'><b><font style="font-size: 7.0pt">&nbsp;</font></b></p>
    </td>
    <td valign=top style='padding:0in; '>
    <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:
    none'><b><font style="font-size: 10.0pt">Name of each exchange </font></b></p>
    </td>
    <td width=1 valign=top style='width:1.0pt;padding:0in 0in 0in 0in'>
    <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:
    none'><b><font style="font-size: 10.0pt">&nbsp;</font></b></p>
    </td>
   </tr>
   <tr>
    <td valign=top style='padding:0in; '>
    <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:
    none'><b><u><font style="font-size: 10.0pt">Title of each class </font></u></b></p>
    </td>
    <td valign=top style='padding:0in; '>
    <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:
    none'><b><u><font style="font-size: 10.0pt">on which registered </font></u></b></p>
    </td>
    <td width=1 valign=top style='width:1.0pt;padding:0in 0in 0in 0in'>
    <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:
    none'><b><font style="font-size: 10.0pt">&nbsp;</font></b></p>
    </td>
   </tr>
   <tr>
    <td valign=top style='padding:0in; '>
    <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:
    none'><b><font style="font-size: 10.0pt">Common Stock, no par value</font></b></p>
    </td>
    <td valign=top style='padding:0in; '>
    <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:
    none'><b><font style="font-size: 10.0pt">NASDAQ Capital Market </font></b></p>
    </td>
    <td width=1 valign=top style='width:1.0pt;padding:0in 0in 0in 0in'>
    <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:
    none'><b><font style="font-size: 10.0pt">&nbsp;</font></b></p>
    </td>
   </tr>
  </table>
  </div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'><font style="font-size: 10.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'><b>Securities
registered under Section 12(g) of the Exchange Act: </b></p>

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

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

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'>(Title
of class) </p>

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

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-indent:.5in;text-autospace:
none'>Check whether the issuer is not required to file reports pursuant to
Section 13 or 15(d) of the Exchange Act.&nbsp; [&nbsp; ]</p>

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

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-indent:.5in;text-autospace:
none'>Check whether the issuer (1) filed all reports required by Section 13 or
15(d) of the Exchange Act during the past 12 months, and (2) has been subject
to such filing requirements for the past 90 days. </p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'>Yes
[X]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No&nbsp; [&nbsp; ]</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'>&nbsp;</p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<font face="Times New Roman,serif">

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


</font>


<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<p style='mso-style-name:"Body\,b\,stdBod\,cbBody";margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:.5in;font-size:11.0pt;font-family:"Times New Roman","serif";'>Check if there is no disclosure of delinquent filers in response
to Item 405 of Regulation S-B contained in this form, and no disclosure will be
contained, to the best of registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form
10-KSB or any amendment to this Form 10-KSB. [ X ]</p>

<p style='mso-style-name:"Body\,b\,stdBod\,cbBody";margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:.5in;font-size:11.0pt;font-family:"Times New Roman","serif";'>Indicate by check mark whether the registrant is a shell company
(as defined by rule 12b-2 of the Exchange Act).</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'>Yes
[&nbsp; ]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No&nbsp; [&nbsp;X ]</p>

<p style='mso-style-name:"Body\,b\,stdBod\,cbBody";margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:.5in;font-size:11.0pt;font-family:"Times New Roman","serif";'>State issuer's revenues for its most recent fiscal year: $25,126,000.
</p>

<p style='mso-style-name:"Body\,b\,stdBod\,cbBody";margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:.5in;font-size:11.0pt;font-family:"Times New Roman","serif";'>State the aggregate market value of the voting and non-voting
common equity held by non-affiliates computed by reference to the average bid
and asked price of such common equity as of September 16, 2008:<u> </u>$5,297,297.
&nbsp;For the purpose of this calculation, shares owned by officers, directors and
10% stockholders known to the registrant have been deemed to be owned by
affiliates. This determination of affiliate status is not a determination for
other purposes. </p>

<p style='mso-style-name:"Body\,b\,stdBod\,cbBody";margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:.5in;font-size:11.0pt;font-family:"Times New Roman","serif";'>The number of shares outstanding of each of the issuer&#146;s classes
of common equity outstanding as of the latest practicable date: 9,717,488 shares of Common Stock, no par value, as
of October 16, 2008. </p>

<p style='mso-style-name:"Body\,b\,stdBod\,cbBody";margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:.5in;font-size:11.0pt;font-family:"Times New Roman","serif";'>DOCUMENTS INCORPORATED BY REFERENCE: None&nbsp; </p>

<p style='mso-style-name:"Body\,b\,stdBod\,cbBody";margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:.5in;font-size:11.0pt;font-family:"Times New Roman","serif";'>Transitional Small Business Disclosure Format:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Yes [&nbsp;
] No [X]</p>

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

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'><b>EXPLANATORY
NOTE</b></p>

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

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-indent:.5in;text-autospace:
none'>This Amendment No. 1 to Form 10-KSB is being filed to include the
information required by Part III, Items 9, 10, 11, 12, and 14 and to update the
information required by Part III, Item 13.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'><font style="font-size: 10.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'><b>Cautionary
statement pursuant to safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. </b></p>

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

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-indent:.5in;text-autospace:
none'>When used in this Amendment No. 1 to Form 10-KSB, the words
&quot;expects,&#148; &quot;anticipates,&quot; &quot;estimates,&quot;
&quot;believes,&quot; &quot;hopes,&quot; &quot;intends,&quot;
&quot;forecasts&quot; and similar expressions are intended to identify
&quot;forward-looking statements.&quot; These statements which are not historical
or current facts are made pursuant to the safe harbor provisions of Section 27a
of the Securities Act of 1933, as amended and Section 21e of the Securities
Exchange Act of 1934, as amended, and the Company intends that such
forward-looking statements be subject to those safe harbor provisions for such
statements. The Company wishes to caution readers not to place undue reliance
on any such forward-looking statements, which speak only as of the date of this
report. While forward-looking statements represent management's best judgment
as to what may occur in the future, they are subject to risks, uncertainties
and important factors beyond the control of the Company that could cause actual
results and events to differ materially from historical results of operations
and events as well as those presently anticipated or projected. These factors
include adverse economic conditions, entry of new and stronger competitors,
capital availability, unexpected costs, failure to capitalize upon access to
new customers, and marketplace delisting. Other risks and uncertainties which
may affect forward-looking statements about the Company's business and
prospects include, but are not limited to, the ramifications of the continued
industry consolidation of dental and medical products manufacturers, dealers
and distributors, managed health care, the Company's ability to effectively
integrate operations of acquired companies, market acceptance and support of
new products, maintaining favorable supplier relationships, the inability to
engage qualified human resources as needed, regulatory compliance and general
economic conditions. The Company disclaims any obligations subsequently to
revise any forward-looking statements to reflect events or circumstances after
the date of such statement or to reflect the occurrence of anticipated or
unanticipated events.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-indent:.5in;text-autospace:
none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-indent:.5in;text-autospace:
none'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:
none; margin-left:0in; margin-right:0in; margin-top:0in'>-2-</p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<font face="Times New Roman,serif">

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


</font>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b>
&nbsp;</b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'><b>PART
III</b></p>

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

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

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'><b>Item 9.&nbsp;&nbsp;
Directors, Executive Officers, Promoters, Control Persons and Corporate
Governance; Compliance With Section 16(a) of the Exchange Act.</b></p>

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

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in;text-autospace:none'>Set forth below
is certain information with respect to the directors and other non-director key
management personnel of the Company.</p>

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

<table class=MsoNormalTable border=0 cellpadding=0 width="85%"
 style='margin-left:31.5pt;border-collapse:collapse'>
 <tr>
  <td valign=top style='padding:0in; ' nowrap>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'><b><u>Name </u></b></p>
  </td>
  <td valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'><b><u>Age </u></b></p>
  </td>
  <td width=734 valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'><b><u>Position
  with Company </u></b></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding:0in; ' nowrap>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>Mark P. Murphy</p>
  </td>
  <td valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'>49</p>
  </td>
  <td width=734 valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'>Chief
  Executive Officer, President and Director</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding:0in; ' nowrap>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>George J. Isaac</p>
  </td>
  <td valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'>63</p>
  </td>
  <td width=734 valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'>Director <sup>(1)</sup></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding:0in; ' nowrap>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>Michael A. Mesenbrink</p>
  </td>
  <td valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'>61</p>
  </td>
  <td width=734 valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'>Director <sup>(1)</sup></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding:0in; ' nowrap>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'>William L.
  Healey</p>
  </td>
  <td valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'>63</p>
  </td>
  <td width=734 valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'>Director <sup>(1)</sup></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding:0in; ' nowrap>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'>Valerio L.
  Giannini</p>
  </td>
  <td valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'>70</p>
  </td>
  <td width=734 valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'>Director <sup>(1)</sup></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding:0in; ' nowrap>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'>Jeffrey J.
  Ritchey</p>
  </td>
  <td valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'>45</p>
  </td>
  <td width=734 valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'>Treasurer,
  Chief Financial Officer and Secretary</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding:0in; ' nowrap>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'>Patrick L.
  Johnson</p>
  </td>
  <td valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'>47</p>
  </td>
  <td width=734 valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'>Executive
  Vice President and Chief Business Development Officer</p>
  </td>
 </tr>
</table>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:31.5pt;text-align:justify;text-autospace:
none'>_____________________________</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:31.5pt;text-align:justify;text-autospace:
none'><font style="font-size: 10.0pt">(1) Member of the Audit and Compensation
Committees.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:12.0pt;text-indent:.5in;text-autospace:
none'>Messrs. Giannini, Mesenbrink, Healey and Isaac are &#147;independent&#148;
directors as such term is defined in Rule 4200(a)(15) of the Nasdaq Marketplace
Rules.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:12.0pt;text-indent:.5in;text-autospace:
none'><b>DIRECTORS</b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:12.0pt;text-indent:.5in;text-autospace:
none'>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;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:12.0pt;text-indent:.5in;text-autospace:
none'>George J. Isaac (63)<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 received a B.S. degree in Business
Administration from Clark University in Worcester, Massachusetts. Mr. Isaac has
been a director of the Company since 1995.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:12.0pt;text-indent:.5in;text-autospace:
none'>Michael A. Mesenbrink (61)<i> </i>has been an associate with Plethora
Businesses, since 2007, conducting mergers and acquisitions, corporate finance,
and business brokerage activities.&nbsp; Prior to that, from 2004 to 2006, he
was CEO of The Center for Advanced Laparoscopic Surgery, a national bariatric
surgery practice and company, and has been in the medical device and health
care industry for 34 years. From 2001 to 2002, he has served as CEO of a multi-national
sports medicine company, Innovation Sports, Inc. Prior to that, he served as
Executive Vice President of a public medical device company, Medstone
International. In 1983 he was co founder of Medical Imaging Centers of America
(MICA), a $225MM market cap public company. &nbsp;Mr. Mesenbrink was formerly
with Johnson &amp; Johnson; Becton-Dickinson and has founded several companies
and held many senior management roles in cardiovascular, surgery, and radiology
product based companies.&nbsp; Mr. Mesenbrink received a BA degree in zoology from San Jose State University in 1970 and did postgraduate studies at the Menai Bridge Ocean
Science Laboratories, University of Wales, U.K.&nbsp; Mr. Mesenbrink has been a
director of the Company since 2002. </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:12.0pt;text-indent:.5in;text-autospace:
none'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:12.0pt;text-autospace:
none; margin-left:0in; margin-right:0in' align="center">-3-</p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<font face="Times New Roman,serif">

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


</font>


<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:12.0pt;text-indent:.5in;text-autospace:
none'>William L. Healey (63) 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.&nbsp; Mr. Healey has been a director
of the Company since 2007.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:12.0pt;text-indent:.5in;text-autospace:
none'>Valerio L. Giannini (70) has been a principal of Newcap Partners, a Los Angeles based private investment banking firm since 1995.&nbsp; He previously served as CEO
of a subsidiary of the Geneva Companies, which was then a subsidiary of
Chemical Bank.&nbsp; Mr. Giannini joined Geneva from Cumberland Investment
Group; a New York based private investment banking partnership. Prior to Cumberland, he held appointments as Director of White House Operations and as a Deputy
Assistant Secretary of Commerce. Mr. Giannini was also previously with the Corporate
Planning Division of IIT Research Institute (Chicago) and the Corporate Finance
department of Kidder, Peabody &amp; Co., New York.&nbsp; Mr. Giannini holds a
B.S.E. from Princeton University. Mr. Giannini has been a director of the
Company since 2002. </p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:12.0pt;text-indent:.5in;text-autospace:
none'><b>NON-DIRECTOR KEY MANAGEMENT PERSONNEL</b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:12.0pt;text-indent:.5in;text-autospace:
none'>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='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:12.0pt;text-indent:.5in;text-autospace:
none'>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<b> </b>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. </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:12.0pt;text-indent:.5in;text-autospace:
none'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:12.0pt;text-autospace:
none; margin-left:0in; margin-right:0in' align="center">-4-</p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<font face="Times New Roman,serif">

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


</font>

<p style='mso-style-name:"Center Bold\,cb";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","serif";font-weight:bold;'><font style="font-size: 12.0pt">TERM OF OFFICE</font></p>


<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:12.0pt;text-indent:.5in;text-autospace:
none'>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 and will 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; At the 2009 shareholders&#146;
meeting all director positions will be up for election.</p>

<p style='mso-style-name:"Center Bold\,cb";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","serif";font-weight:bold;'><font style="font-size: 12.0pt">BOARD OF DIRECTORS MEETINGS
AND RELATED MATTERS</font></p>

<p style='mso-style-name:"Body\,b\,stdBod\,cbBody";margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:.5in;font-size:11.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 12.0pt">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.</font></p>

<p style='mso-style-name:"Body\,b\,stdBod\,cbBody";margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:.5in;font-size:11.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 12.0pt">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 appoint or replace the independent public accounting firm subject if
applicable, to shareholder ratification for the ensuing fiscal year.&nbsp; A copy of the Audit Committee&#146;s current charter may be
found at the Company&#146;s website at </font>  www.pro-dex.com<font style="font-size: 12.0pt">.&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>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>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;font-size:12.0pt;font-family:"Times New Roman","serif";text-indent:.5in'>&nbsp;</p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman,serif";margin-bottom:.0001pt;text-align:justify;text-indent:.5in; margin-left:0in; margin-right:0in; margin-top:0in'>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   <u><font color="#0000FF">www.pro-dex.com</font></u> 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:"Times New Roman,serif";margin-bottom:.0001pt;text-align:justify;text-indent:.5in; 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,serif";margin-bottom:.0001pt;text-align:justify;text-indent:.5in; 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,serif";margin-bottom:.0001pt;text-align:center;margin-left:0in; margin-right:0in; margin-top:0in'>
- -5-</p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<font face="Times New Roman,serif">

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


</font>


<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

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

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman,serif";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-size:12.0pt;font-family:"Arial Unicode MS","sans-serif";margin:0in;margin-bottom:.0001pt'>&nbsp;</p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman,serif";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:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:12.0pt;text-indent:.5in'>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  www.pro-dex.com .&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>

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

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:12.0pt;text-align:justify;text-indent:
..5in;text-autospace:none'>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='mso-style-name:"Center Bold\,cb";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","serif";font-weight:bold;'><font style="font-size: 12.0pt">FAMILY RELATIONSHIPS</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:12.0pt;text-indent:.5in;text-autospace:
none'>There are no family relationships among the Company&#146;s executive officers
and directors.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:12.0pt;text-indent:.5in;text-autospace:
none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:12.0pt;text-indent:.5in;text-autospace:
none'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:12.0pt;text-autospace:
none; margin-left:0in; margin-right:0in' align="center">-6-</p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<font face="Times New Roman,serif">

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


</font>


<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<p style='mso-style-name:"Center Bold\,cb";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","serif";font-weight:bold;'><font style="font-size: 12.0pt">CODE OF BUSINESS CONDUCT AND
ETHICS</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:12.0pt;text-align:justify;text-indent:
..5in;page-break-after:avoid;text-autospace:none'>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:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:12.0pt;text-align:justify;text-indent:
..5in;text-autospace:none'>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:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:12.0pt;text-align:justify;text-indent:
..5in;text-autospace:none'>Information on our Internet site is not, and shall
not be deemed to be, a part of this report or incorporated into any other
filings we make with the Securities and Exchange Commission (&#147;SEC&#148;). </p>

<p style='mso-style-name:"Center Bold\,cb";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","serif";font-weight:bold;'><font style="font-size: 12.0pt">SECTION 16(a) BENEFICIAL
OWNERSHIP REPORTING COMPLIANCE</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:12.0pt;text-align:justify;text-indent:
..5in;text-autospace:none'>Under Section 16(a) of the
Securities Exchange Act of 1934, as amended, 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 SEC 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:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:12.0pt;text-autospace:none'><b>Item 10.&nbsp;&nbsp; Executive
Compensation.</b></p>

<p style='mso-style-name:"Center Bold\,cb";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","serif";font-weight:bold;'><font style="font-size: 12.0pt">COMPENSATION OF EXECUTIVE
OFFICERS AND MANAGEMENT</font></p>

<p style='mso-style-name:"body text";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","serif";'><font style="font-size: 12.0pt">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;).</font></p>

<p style='mso-style-name:"Center Bold\,cb";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","serif";font-weight:bold;'><font style="font-size: 12.0pt">Summary Compensation Table</font></p>
<p style='mso-style-name:"Center Bold\,cb";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","serif";font-weight:bold;'>&nbsp;</p>

<table class=MsoNormalTable border=0 cellpadding=0 width="95%"
 style='border-collapse:collapse'>
 <tr style='height:11.65pt'>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
 </tr>
 <tr style='height:11.65pt'>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
 </tr>
 <tr style='height:21.95pt'>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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; '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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; '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">($)</font></b></p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">($)</font></b></p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">($)(1)</font></b></p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">($)(2)</font></b></p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">($)(3)</font></b></p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">($)(4)</font></b></p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">($)</font></b></p>
  </td>
 </tr>
 <tr style='height:20.45pt'>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
 </tr>
 <tr style='height:12.3pt'>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif"; 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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$289,823&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">117,300&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif"; 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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$226,673&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">156,400&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif"; 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;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
 </tr>
 <tr style='height:11.65pt'>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
 </tr>
 <tr style='height:12.35pt'>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif"; 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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$158,701&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">-&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif"; 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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$147,194&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">-&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif"; 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;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
 </tr>
 <tr style='height:11.65pt'>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
 </tr>
 <tr style='height:12.35pt'>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif"; 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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$197,885&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">-&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif"; 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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$186,923&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">-&nbsp;</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif"; 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;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
 </tr>
</table>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'>

<p style="font-size: 12.0pt; font-family: 'Times New Roman',serif; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&nbsp;</p>
<p style="font-size: 12.0pt; font-family: 'Times New Roman',serif; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">
- -7-</p>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<font face="Times New Roman,serif">

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


</font>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 9.0pt">__________________________</font></p>

<table border="0" width="100%">
	<tr>
		<td valign="top"><font style="font-size: 10.0pt">(1)</font></td>
		<td valign="top" width="1296">

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none; margin-top:0in'>
<font style="font-size: 10.0pt">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>
	<tr>
		<td valign="top"><font style="font-size: 10.0pt">(2)</font></td>
		<td valign="top" width="1296">

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none; margin-top:0in'>
<font style="font-size: 10.0pt">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 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"><font style="font-size: 10.0pt">(3)</font></td>
		<td valign="top" width="1296">

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none; margin-top:0in'>
<font style="font-size: 10.0pt">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"><font style="font-size: 10.0pt">(4)</font></td>
		<td valign="top" width="1296">

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none; margin-top:0in'>
<font style="font-size: 10.0pt">All Other Compensation consists
of:</font></p>

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

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 10.0pt">&nbsp;</font></p>

<div align="center">

<table class=MsoNormalTable border=0 cellpadding=0 width="80%"
 style='border-collapse:collapse'>
 <tr style='height:34.9pt'>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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; '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  ' width="10%">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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;
  ' width="10%">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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;
  ' width="10%">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'><b>
	<font size="2">Total&nbsp;($)</font></b></p>
  </td>
 </tr>
 <tr style='height:11.65pt'>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  ' width="10%">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  ' width="10%">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  ' width="10%">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
 </tr>
 <tr style='height:11.65pt'>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif"; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">Mark&nbsp;P.&nbsp;Murphy</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">2008</font></p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">13,726&nbsp;</font></p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">1,381&nbsp;</font></p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">2007</font></p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">7,065&nbsp;</font></p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">404&nbsp;</font></p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">7,469&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:11.65pt'>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  ' width="10%">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  ' width="10%">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  ' width="10%">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
 </tr>
 <tr style='height:11.65pt'>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif"; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">Jeffrey&nbsp;J.&nbsp;Ritchey</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">2008</font></p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">11,642&nbsp;</font></p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">2,136&nbsp;</font></p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">2007</font></p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">7,699&nbsp;</font></p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">1,942&nbsp;</font></p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">9,641&nbsp;</font></p>
  </td>
 </tr>
 <tr style='height:11.65pt'>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  ' width="10%">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  ' width="10%">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  ' width="10%">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
 </tr>
 <tr style='height:11.65pt'>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif"; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">Patrick&nbsp;Johnson</font></p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">2008</font></p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">13,483&nbsp;</font></p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">2,641&nbsp;</font></p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">2007</font></p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">9,318&nbsp;</font></p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">2,321&nbsp;</font></p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">$</font></p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.5pt;text-align:center'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.5pt;text-align:center'><font style="font-size: 10.0pt">&nbsp;</font></p>

<table border="0" width="100%">
	<tr>
		<td valign="top"><font style="font-size: 10.0pt">(5)</font></td>
		<td width="1359" valign="top">

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.5pt;margin-bottom:0in;
margin-bottom:.0001pt;'><font style="font-size: 10.0pt">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"><font style="font-size: 10.0pt">(6) </font></td>
		<td width="1359" valign="top">

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.5pt;margin-bottom:0in;
margin-bottom:.0001pt;'><font style="font-size: 10.0pt">Mr. Ritchey commenced employment with
the Company in </font><font size="2">August 2001 and
was named Treasurer and Chief Financial Officer in July 2002 and Secretary in
October 2003.&nbsp; &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, </font> <font style="font-size: 10.0pt">in
August 2006.</font></p>

		</td>
	</tr>
	<tr>
		<td valign="top"><font style="font-size: 10.0pt">(7)</font></td>
		<td width="1359" valign="top">

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.5pt;margin-bottom:0in;
margin-bottom:.0001pt;'><font style="font-size: 10.0pt">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.</font></p>

		</td>
	</tr>
	<tr>
		<td valign="top"><font style="font-size: 10.0pt">(8)</font></td>
		<td width="1359" valign="top">

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:0in; margin-top:0in'>
<font style="font-size: 10.0pt">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; </font></p>

		</td>
	</tr>
	<tr>
		<td valign="top"><font style="font-size: 10.0pt">(9)</font></td>
		<td width="1359" valign="top">

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.5pt;margin-bottom:0in;
margin-bottom:.0001pt;'><font style="font-size: 10.0pt">Included in the 2007 Salary and Total
for Mr. Murphy is $3,750 of director fees earned prior to his becoming an
employee of the Company. </font></p></td>
	</tr>
</table>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.5pt;margin-bottom:0in;
margin-left:.5in;margin-bottom:.0001pt;text-indent:-.5in'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.5pt;margin-bottom:0in;
margin-left:.5in;margin-bottom:.0001pt;text-indent:-.5in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";margin-top:0in;margin-right:.5pt;margin-bottom:0in;
margin-left:.5in;margin-bottom:.0001pt;text-indent:-.5in' align="center">-8-</p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<font face="Times New Roman,serif">

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


</font>


<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<p style='mso-style-name:"Center Bold\,cb";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","serif";font-weight:bold;'><font style="font-size: 12.0pt">EMPLOYMENT AGREEMENTS AND
EXECUTIVE COMPENSATION</font></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman,serif";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,serif";text-align:justify;text-indent:.5in'>Mr.
Murphy has an employment agreement (&#147;Murphy Employment Agreement&#148;) with the
Company 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='font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-indent:.5in; margin-left:0in; margin-right:0in; margin-top: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='font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-indent:.5in; margin-left:0in; margin-right:0in; margin-top: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 SEC 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='font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-indent:.5in; margin-left:0in; margin-right:0in; margin-top: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='font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-indent:.5in; margin-left:0in; margin-right:0in; margin-top: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='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-indent:.5in'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-indent:.5in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;margin-left:0in; margin-right:0in; margin-top:0in'>
- -9-</p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<font face="Times New Roman,serif">

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


</font>


<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<p style='font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-indent:.5in; margin-left:0in; margin-right:0in; margin-top: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='font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-indent:.5in; margin-left:0in; margin-right:0in; margin-top: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='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-right:.5pt;text-align:justify;text-indent:
..5in'>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='mso-style-name:"body text";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","serif"'>
<b>Employment Agreement with Patrick L. Johnson</b></p>

<p style='mso-style-name:"Body\,b\,stdBod\,cbBody";margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:.5in;font-family:"Times New Roman","serif";text-align:justify'>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='mso-style-name:"body text";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","serif"'>
<b>Employment Agreement with Jeffrey J. Ritchey</b></p>
<p style='mso-style-name:"body text";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","serif"'>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='mso-style-name:"body text";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","serif";'>&nbsp;</p>
<p style='mso-style-name:"body text";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","serif"'>
- -10-</p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<font face="Times New Roman,serif">

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


</font>


<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<p style='mso-style-name:"Center Bold\,cb";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","serif";font-weight:bold;'>OUTSTANDING EQUITY AWARDS AT FISCAL YEAR END</p>

<p style='mso-style-name:"Body\,b\,stdBod\,cbBody";margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:.5in;font-size:11.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 12.0pt">The following table sets forth
information about outstanding equity awards held by our Named Executive
Officers as of June 30, 2008.</font></p>

<p style='mso-style-name:"Center Bold\,cb";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","serif";font-weight:bold;'><font style="font-size: 12.0pt">Outstanding Equity Awards at
June 30, 2008</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";page-break-after:avoid'>&nbsp;</p>

<div align="center">

<table class=MsoNormalTable border=0 cellpadding=0 width="90%"
 style='margin-left:.8in;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;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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>
  (#)<sup>(2)</sup></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;font-family:"Times New Roman","serif";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>
  ($)</font></p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:5.85pt'>
  <td valign=bottom style='padding-left:.05in; padding-right:.05in; padding-top:0in; padding-bottom:0in' colspan="2">
  <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:center;page-break-after:
  avoid;border:medium none;padding:0in; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">Underlying<br>
  Unexercised<br>
  Options<br>
  (#)<br>
  Exercisable <sup>(1)</sup></font></p>
  </div>
  </td>
  <td valign=bottom style='padding-left:.05in; padding-right:.05in; padding-top:0in; padding-bottom:0in' colspan="2">
  <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:center;page-break-after:
  avoid;border:medium none;padding:0in; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">Underlying<br>
  Unexercised<br>
  Options<br>
  (#)<br>
  Unexercisable<sup>(1)</sup></font></p>
  </div>
  </td>
  <td valign=bottom style='padding-left:.05in; padding-right:.05in; padding-top:0in; padding-bottom:0in'>
  <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-align:center;page-break-after:
  avoid;border:medium none;padding:0in; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">Option <br>
  Exercise<br>
  Price<br>
  ($)</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;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  &nbsp;</td>
  <td style='padding-left:.05in; padding-right:.05in; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";page-break-after:avoid'>&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' align="right">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";page-break-after:avoid'>&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' align="right">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  &nbsp;</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;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  &nbsp;</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;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";page-break-after:avoid'>&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' align="right">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";page-break-after:avoid'>&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' align="right">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";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:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 10.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.5in;text-indent:-35.3pt'><font style="font-size: 10.0pt">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 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; </font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.5in;text-indent:-35.3pt'><font style="font-size: 10.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.5in;text-indent:-.5in'><font style="font-size: 10.0pt">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 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.</font></p>

<p style='mso-style-name:"Center Bold\,cb";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","serif";font-weight:bold;'><font style="font-size: 12.0pt">COMPENSATION OF DIRECTORS</font></p>
<p style="mso-style-name: 'Center Bold\',cb; text-align: justify; page-break-after: avoid; text-autospace: none; font-size: 11.0pt; font-family: Times New Roman',serif; text-indent: 0.5in; text-align: left; margin-left: 0in; margin-right: 0in; margin-top: 12.0pt; margin-bottom: .0001pt'; ">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="mso-style-name: 'Center Bold\',cb; text-align: left; page-break-after: avoid; text-autospace: none; font-size: 11.0pt; font-family: 'Times New Roman',serif; margin-left: 0in; margin-right: 0in; margin-top: 12.0pt; margin-bottom: .0001pt">&nbsp;</p>
<p style="mso-style-name: 'Center Bold\',cb; page-break-after: avoid; text-autospace: none; font-size: 11.0pt; font-family: 'Times New Roman',serif; margin-left: 0in; margin-right: 0in; margin-top: 12.0pt; margin-bottom: .0001pt" align="center">-11-</p>
<hr size=2 width="100%" noshade style='color:navy' align=center>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<font face="Times New Roman,serif">

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


</font>


<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<p style='mso-style-name:"Body\,b\,stdBod\,cbBody";margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:.5in;font-size:11.0pt;font-family:"Times New Roman","serif";'><font style="font-size: 12.0pt">The directors&#146; fees paid in the
fiscal year ended June 30, 2008 are as follows:</font></p>

<p style='mso-style-name:"Body\,b\,stdBod\,cbBody";margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:.5in;font-size:11.0pt;font-family:"Times New Roman","serif";text-align:center;text-indent:0in'><b><font style="font-size: 12.0pt">Director Compensation</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b>&nbsp;</b></p>

<div align="center">

<table class=MsoNormalTable border=0 cellpadding=0 width="90%"
 style='border-collapse:collapse'>
 <tr style='page-break-inside:avoid;height:.05pt'>
  <td width="37%" valign=top style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'>&nbsp;</p>
  </td>
  <td width="12%" valign=top style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td width="10%" valign=top style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td width="15%" valign=top style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td width="10%" valign=top style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td width="7%" valign=top style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td width="7%" valign=top style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
 </tr>
 <tr style='height:46.6pt'>
  <td width="37%" valign=bottom style='padding:1.1pt;
  ' nowrap>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b>Name</b></p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  ' nowrap>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b>Fees&nbsp;Earned</b></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b>or&nbsp;Paid</b></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b>in&nbsp;Cash</b></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b>($)</b></p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  ' nowrap>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b>Option&nbsp;Awards</b></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b>($) (1)</b></p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  ' nowrap>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'><b>Total&nbsp;($)</b></p>
  </td>
 </tr>
 <tr style='height:11.65pt'>
  <td width="37%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
 </tr>
 <tr style='height:14.35pt'>
  <td width="37%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>George&nbsp;J.&nbsp;Isaac
  (2)</p>
  </td>
  <td width="12%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>$</p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>19,250&nbsp;</p>
  </td>
  <td width="15%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>$</p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>12,278&nbsp;</p>
  </td>
  <td width="7%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>$</p>
  </td>
  <td width="7%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>31,528&nbsp;</p>
  </td>
 </tr>
 <tr style='height:11.65pt'>
  <td width="37%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width="37%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>Mark&nbsp;P.&nbsp;Murphy
  (3)</p>
  </td>
  <td width="12%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>$</p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>-&nbsp;</p>
  </td>
  <td width="15%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>$</p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>-&nbsp;</p>
  </td>
  <td width="7%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>$</p>
  </td>
  <td width="7%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>-&nbsp;</p>
  </td>
 </tr>
 <tr style='height:11.65pt'>
  <td width="37%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
 </tr>
 <tr style='height:14.35pt'>
  <td width="37%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>Michael&nbsp;Mesenbrink
  (4)</p>
  </td>
  <td width="12%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>$</p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>19,250&nbsp;</p>
  </td>
  <td width="15%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>$</p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>11,874&nbsp;</p>
  </td>
  <td width="7%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>$</p>
  </td>
  <td width="7%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>31,124&nbsp;</p>
  </td>
 </tr>
 <tr style='height:11.65pt'>
  <td width="37%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width="37%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>Valerio&nbsp;Giannini
  (5)</p>
  </td>
  <td width="12%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>$</p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>19,250&nbsp;</p>
  </td>
  <td width="15%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>$</p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>10,461&nbsp;</p>
  </td>
  <td width="7%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>$</p>
  </td>
  <td width="7%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>29,711&nbsp;</p>
  </td>
 </tr>
 <tr style='height:11.65pt'>
  <td width="37%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
 </tr>
 <tr style='height:.2in'>
  <td width="37%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>William&nbsp;L.&nbsp;Healey
  (6)</p>
  </td>
  <td width="12%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>$</p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>6,000&nbsp;</p>
  </td>
  <td width="15%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>$</p>
  </td>
  <td width="10%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>14,354&nbsp;</p>
  </td>
  <td width="7%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>$</p>
  </td>
  <td width="7%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right'>20,354&nbsp;</p>
  </td>
 </tr>
 <tr style='height:11.65pt'>
  <td width="37%" valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom style='padding:1.1pt;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  </td>
 </tr>
</table>

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:31.5pt;text-indent:2.5pt'><font style="font-size: 9.0pt">___________________</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:31.5pt;text-indent:2.5pt'>&nbsp;</p>

<table border="0" width="100%">
	<tr>
		<td valign="top">
		<p style="margin-top: 0; margin-bottom: 0"><font style="font-size: 10.0pt">
		(1)</font></td>
		<td width="1318" valign="top">

<p style='mso-style-name:"Body\,b\,stdBod\,cbBody";margin-top:0;margin-bottom:0in;margin-bottom:0;font-size:11.0pt;font-family:"Times New Roman","serif";'>
<font style="font-size: 10.0pt">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">&nbsp;</td>
		<td width="1318" valign="top">&nbsp;</td>
	</tr>
	<tr>
		<td valign="top">
		<p style="margin-top: 0; margin-bottom: 0"><font style="font-size: 10.0pt">
		(2)</font></td>
		<td width="1318" valign="top">

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0;margin-bottom:
0in;margin-bottom:0;'><font style="font-size: 10.0pt">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.</font></p>

		</td>
	</tr>
	<tr>
		<td valign="top">&nbsp;</td>
		<td width="1318" valign="top">&nbsp;</td>
	</tr>
	<tr>
		<td valign="top">
		<p style="margin-top: 0; margin-bottom: 0"><font style="font-size: 10.0pt">
		(3)</font></td>
		<td width="1318" valign="top">

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0;margin-bottom:
0in;margin-bottom:0;'><font style="font-size: 10.0pt">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.</font></p>

		</td>
	</tr>
	<tr>
		<td valign="top">&nbsp;</td>
		<td width="1318" valign="top">&nbsp;</td>
	</tr>
	<tr>
		<td valign="top">
		<p style="margin-top: 0; margin-bottom: 0"><font style="font-size: 10.0pt">
		(4)</font></td>
		<td width="1318" valign="top">

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0;margin-bottom:
0in;margin-bottom:0;'><font style="font-size: 10.0pt">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.</font></p>

		</td>
	</tr>
	<tr>
		<td valign="top">&nbsp;</td>
		<td width="1318" valign="top">&nbsp;</td>
	</tr>
	<tr>
		<td valign="top">
		<p style="margin-top: 0; margin-bottom: 0"><font style="font-size: 10.0pt">
		(5)</font></td>
		<td width="1318" valign="top">

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0;margin-bottom:
0in;margin-bottom:0;text-align:justify;text-autospace:none'>
<font style="font-size: 10.0pt">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">&nbsp;</td>
		<td width="1318" valign="top">&nbsp;</td>
	</tr>
	<tr>
		<td valign="top">
		<p style="margin-top: 0; margin-bottom: 0"><font style="font-size: 10.0pt">
		(6)</font></td>
		<td width="1318" valign="top">

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0;margin-bottom:
0in;margin-bottom:0;text-align:justify;text-autospace:none'>
<font style="font-size: 10.0pt">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></p>
		</td>
	</tr>
</table>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:27.0pt;margin-bottom:.0001pt;text-align:justify;text-indent:
- -27.0pt;text-autospace:none'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'><font style="font-size: 10.0pt">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";text-autospace:none; margin-left:0in; margin-right:0in; margin-top:0in' align="center">
- -12-</p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<font face="Times New Roman,serif">

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


</font>


<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";page-break-after:avoid;text-autospace:none'><b>Item
11.&nbsp;&nbsp; Security Ownership of Certain Beneficial Owners and Management
and Related Stockholder Matters.</b></p>

<p style='mso-style-name:"body text";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","serif";text-align:center;text-indent:0in;
page-break-after:avoid'><b><font style="font-size: 12.0pt">SECURITY OWNERSHIP OF
CERTAIN BENEFICIAL OWNERS AND MANAGEMENT</font></b></p>

<p style='mso-style-name:"Body\,b\,stdBod\,cbBody";margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:.5in;font-size:11.0pt;font-family:"Times New Roman","serif";text-align:justify;text-indent:0in'><font style="font-size: 12.0pt">The following table sets forth certain information
with respect to the beneficial ownership of the Company&#146;s Common Stock as of
October 15, 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 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.</font></p>

<p style='mso-style-name:"Body\,b\,stdBod\,cbBody";margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:.5in;font-size:11.0pt;font-family:"Times New Roman","serif";margin-top:0in;text-align:justify;text-indent:0in'><b>&nbsp;</b></p>

<div align="left">

<table class=MsoNormalTable border=0 cellpadding=0
 style='border-collapse:collapse' width="85%">
 <tr>
  <td width=639 valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";line-height:12.0pt; margin-left:0in; margin-right:0in; margin-top:0in'><b>&nbsp;</b></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:12.0pt'><b><u>
	<font size="3">Name of Beneficial Owner</font></u><sup>(1)</sup></b></p>
  </td>
  <td valign=bottom style='border-right-style:none; border-right-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' colspan="2">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;line-height:12.0pt'><b>
	<font size="3">Number of Shares of Common <u><br>
	Stock Beneficially
  Owned</u></font><sup>(2)</sup></b></p>
  </td>
  <td valign=bottom style='border-style:none; border-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  &nbsp;</td>
  <td valign=bottom style='border-left-style:none; border-left-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' colspan="2">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;line-height:12.0pt'><b>
	<font size="3">Percent of Common Stock <u><br>
	Beneficially Owned</u></font><sup>(3)</sup></b></p>
  </td>
 </tr>
 <tr>
  <td width=639 valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";line-height:12.0pt; margin-left:0in; margin-right:0in; margin-top:0in'>First Wilshire Securities
  Management Inc.</p>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif"; 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","serif";line-height:12.0pt; margin-left:0in; margin-right:0in; margin-top:0in'>Pasadena, CA 91106</p>
  </td>
  <td valign=bottom style='border-bottom:3px double #000000; border-right-style:none; border-right-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";line-height:12.0pt; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;&nbsp;&nbsp; 1,559,284</p>
  </td>
  <td valign=bottom style='border-bottom:medium none #000000; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=bottom style='border-bottom:medium none #000000; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=bottom style='border-bottom:3px double #000000; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";line-height:12.0pt; margin-left:0in; margin-right:0in; margin-top:0in'>16.0%</p>
  </td>
  <td valign=bottom style='border-bottom:medium none #000000; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td width=639 valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";line-height:12.0pt; margin-left:0in; margin-right:0in; margin-top:0in'>Ronald G. Coss </p>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif"; margin-left:0in; margin-right:0in; margin-top:0in'>3 Overlook Drive</p>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";line-height:12.0pt; margin-left:0in; margin-right:0in; margin-top:0in'>Newport Coast, CA 92657</p>
  </td>
  <td valign=bottom style='border-bottom:3px double #000000; border-right-style:none; border-right-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";line-height:12.0pt; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;&nbsp;&nbsp; 1,316,879<sup>(4)</sup>
  </p>
  </td>
  <td valign=bottom style='border-bottom:medium none #000000; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=bottom style='border-bottom:medium none #000000; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=bottom style='border-bottom:3px double #000000; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";line-height:12.0pt; margin-left:0in; margin-right:0in; margin-top:0in'>13.4%</p>
  </td>
  <td valign=bottom style='border-bottom:medium none #000000; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td width=639 valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:12.0pt'>&nbsp;</p>
  </td>
  <td valign=bottom style='border-right-style:none; border-right-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;line-height:12.0pt'>&nbsp;</p>
  </td>
  <td valign=bottom style='border-style:none; border-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=bottom style='border-style:none; border-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=bottom style='border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:12.0pt'>&nbsp;</p>
  </td>
  <td valign=bottom style='border-style:none; border-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td width=639 valign=bottom 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","serif";line-height:12.0pt; margin-left:0in; margin-right:0in; margin-top:0in'>George J. Isaac </p>
  </td>
  <td valign=bottom style='border-right-style:none; border-right-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";line-height:12.0pt; margin-left:0in; margin-right:0in; margin-top:0in'>179,500<sup>(4)</sup></p>
  </td>
  <td valign=bottom style='border-style:none; border-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=bottom style='border-style:none; border-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=bottom style='border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";line-height:12.0pt; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;1.8% </p>
  </td>
  <td valign=bottom style='border-style:none; border-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td width=639 valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";line-height:12.0pt; margin-left:0in; margin-right:0in; margin-top:0in'>Mark P. Murphy</p>
  </td>
  <td valign=bottom style='border-right-style:none; border-right-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";line-height:12.0pt; margin-left:0in; margin-right:0in; margin-top:0in'>253,200<sup>(4)</sup></p>
  </td>
  <td valign=bottom style='border-style:none; border-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=bottom style='border-style:none; border-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=bottom style='border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";line-height:12.0pt; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;2.6%</p>
  </td>
  <td valign=bottom style='border-style:none; border-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td width=639 valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";line-height:12.0pt; margin-left:0in; margin-right:0in; margin-top:0in'>Michael A. Mesenbrink</p>
  </td>
  <td valign=bottom style='border-right-style:none; border-right-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";line-height:12.0pt; margin-left:0in; margin-right:0in; margin-top:0in'>95,000<sup>(4)</sup></p>
  </td>
  <td valign=bottom style='border-style:none; border-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=bottom style='border-style:none; border-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=bottom style='border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";line-height:12.0pt; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;1.0%</p>
  </td>
  <td valign=bottom style='border-style:none; border-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td width=639 valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";line-height:12.0pt; margin-left:0in; margin-right:0in; margin-top:0in'>Valerio L. Giannini</p>
  </td>
  <td valign=bottom style='border-right-style:none; border-right-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";line-height:12.0pt; margin-left:0in; margin-right:0in; margin-top:0in'>95,000<sup>(4)</sup></p>
  </td>
  <td valign=bottom style='border-style:none; border-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=bottom style='border-style:none; border-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=bottom style='border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";line-height:12.0pt; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;1.0%</p>
  </td>
  <td valign=bottom style='border-style:none; border-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td width=639 valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";line-height:12.0pt; margin-left:0in; margin-right:0in; margin-top:0in'>William, L. Healey</p>
  </td>
  <td valign=bottom style='border-right-style:none; border-right-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";line-height:12.0pt; margin-left:0in; margin-right:0in; margin-top:0in'>20,000<sup>(4)</sup></p>
  </td>
  <td valign=bottom style='border-style:none; border-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=bottom style='border-style:none; border-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=bottom style='border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";line-height:12.0pt; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;*</p>
  </td>
  <td valign=bottom style='border-style:none; border-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td width=639 valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:12.0pt'>&nbsp;</p>
  </td>
  <td valign=bottom style='border-right-style:none; border-right-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:12.0pt'>&nbsp;</p>
  </td>
  <td valign=bottom style='border-style:none; border-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=bottom style='border-style:none; border-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=bottom style='border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:12.0pt'>&nbsp;</p>
  </td>
  <td valign=bottom style='border-style:none; border-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td width=639 valign=bottom 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","serif";line-height:12.0pt; margin-left:0in; margin-right:0in; margin-top:0in'>Patrick Johnson </p>
  </td>
  <td valign=bottom style='border-right-style:none; border-right-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";line-height:12.0pt; margin-left:0in; margin-right:0in; margin-top:0in'>458,430<sup>(4)</sup></p>
  </td>
  <td valign=bottom style='border-style:none; border-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=bottom style='border-style:none; border-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=bottom style='border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";line-height:12.0pt; margin-left:0in; margin-right:0in; margin-top:0in'>4.5% </p>
  </td>
  <td valign=bottom style='border-style:none; border-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td width=639 valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";line-height:12.0pt; margin-left:0in; margin-right:0in; margin-top:0in'>Jeffrey J. Ritchey&nbsp;&nbsp; </p>
  </td>
  <td valign=bottom style='border-right-style:none; border-right-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";line-height:12.0pt; margin-left:0in; margin-right:0in; margin-top:0in'>125,500<sup>(4)</sup></p>
  </td>
  <td valign=bottom style='border-style:none; border-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=bottom style='border-style:none; border-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=bottom style='border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";line-height:12.0pt; margin-left:0in; margin-right:0in; margin-top:0in'>1.3%</p>
  </td>
  <td valign=bottom style='border-style:none; border-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td width=639 valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:12.0pt'>&nbsp;</p>
  </td>
  <td valign=bottom style='border-right-style:none; border-right-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:12.0pt'>&nbsp;</p>
  </td>
  <td valign=bottom style='border-style:none; border-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=bottom style='border-style:none; border-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=bottom style='border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:12.0pt'>&nbsp;</p>
  </td>
  <td valign=bottom style='border-style:none; border-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
 </tr>
 <tr>
  <td width=639 valign=bottom style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif"; margin-left:0in; margin-right:0in; margin-top:0in'>All Named Executive Officers and directors as a group (7
  persons) </p>
  </td>
  <td valign=bottom style='border-bottom:3px double #000000; border-right-style:none; border-right-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";line-height:12.0pt; margin-left:0in; margin-right:0in; margin-top:0in'><a name="_DV_M68"></a>1,226,630<sup>(4)</sup></p>
  </td>
  <td valign=bottom style='border-bottom:medium none #000000; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=bottom style='border-bottom:medium none #000000; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
  <td valign=bottom style='border-bottom:3px double #000000; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;font-family:"Times New Roman","serif";line-height:12.0pt; margin-left:0in; margin-right:0in; margin-top:0in'><a name="_DV_M69"></a>11.6%<b>
  </b></p>
  </td>
  <td valign=bottom style='border-bottom:medium none #000000; border-left-style:none; border-left-width:medium; border-right-style:none; border-right-width:medium; border-top-style:none; border-top-width:medium; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  &nbsp;</td>
 </tr>
</table>

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.5in;text-indent:-.5in'><a name="_DV_M70"></a><font style="font-size: 10.0pt">__________________________</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:6.0pt;margin-right:0in;margin-bottom:0in;
margin-left:.5in;margin-bottom:.0001pt;text-indent:-.5in'><a name="_DV_M71"></a><font style="font-size: 10.0pt">* Less than 1%.<br>
&nbsp;</font></p>

<table border="0" width="100%">
	<tr>
		<td valign="top">
		<p style="margin-top: 0; margin-bottom: 0"><font style="font-size: 10.0pt">
		1.</font></td>
		<td width="1352" valign="top">

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0;margin-bottom:0in;
margin-bottom:0;'><font style="font-size: 10.0pt">Unless otherwise indicated, the address is c/o
Pro-Dex, Inc., 2361 McGaw Avenue, Irvine, California 92614.</font></p>

		</td>
	</tr>
	<tr>
		<td valign="top">
		<p style="margin-top: 0; margin-bottom: 0"><font style="font-size: 10.0pt">
		2.</font></td>
		<td width="1352" valign="top">

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0;margin-bottom:0in;
margin-bottom:0;'><font style="font-size: 10.0pt">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>

		</td>
	</tr>
	<tr>
		<td valign="top">
		<p style="margin-top: 0; margin-bottom: 0"><font style="font-size: 10.0pt">
		3.</font></td>
		<td width="1352" valign="top">

<p style='mso-style-name:"Hanging\,h";margin-top:12.0pt;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none;font-size:11.0pt;font-family:"Times New Roman","serif";margin-top:0;margin-bottom:0in;
margin-bottom:0;'><font style="font-size: 10.0pt">Applicable percentage ownership is based on 9,717,488</font>
<font style="font-size: 10.0pt">shares of Common Stock outstanding as of October
15, 2008.&nbsp; Any securities not outstanding but subject to <a name="_DV_C25">warrants
or</a> options exercisable as of October
15, 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>

		</td>
	</tr>
	<tr>
		<td valign="top">
		<p style="margin-top: 0; margin-bottom: 0">
		<font style="font-size: 10.0pt">4.</font></td>
		<td width="1352" valign="top">

<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:0;margin-bottom:0in;
margin-bottom:0;'><font style="font-size: 10.0pt">Includes shares of Common Stock <a name="_DV_C28">issuable
upon the exercise of</a> warrants
and options which were exercisable as of October 15, 2008 or exercisable within
60 days after October 15, 2008, as follows: Mr. Coss, 100,000<a
name="_DV_M78"></a> shares, Mr. Isaac, 75,000 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, 121,500 shares, and
all current directors and Named Executive Officers as a group, <a name="_DV_M79"></a>829,000
shares. </font></p>

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

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none' align="center">
- -13-</p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<font face="Times New Roman,serif">

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


</font>


<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'>
<b>EQUITY
COMPENSATION PLAN INFORMATION</b></p>

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

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

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

<div align="left">

<table class=MsoNormalTable border=0 cellpadding=0
 style='border-collapse:collapse' width="90%">
 <tr>
  <td valign=bottom 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 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none;
  border:none;padding:0in'><font style="font-size: 11.0pt">Plan Category</font></p>
  </div>
  </td>
  <td valign=bottom 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 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none;
  border:none;padding:0in'><font style="font-size: 11.0pt">Number of Securities </font></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none;
  border:none;padding:0in'><font style="font-size: 11.0pt">to be Issued Upon</font></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none;
  border:none;padding:0in'><font style="font-size: 11.0pt">Exercise of</font></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none;
  border:none;padding:0in'><font style="font-size: 11.0pt">Outstanding Options,</font></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none;
  border:none;padding:0in'><font style="font-size: 11.0pt">Warrants and Rights</font></p>
  </div>
  </td>
  <td valign=bottom 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 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none;
  border:none;padding:0in'><font style="font-size: 11.0pt">Weighted Average</font></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none;
  border:none;padding:0in'><font style="font-size: 11.0pt">Exercise Price of</font></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none;
  border:none;padding:0in'><font style="font-size: 11.0pt">Outstanding Options,</font></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none;
  border:none;padding:0in'><font style="font-size: 11.0pt">Warrants and Rights</font></p>
  </div>
  </td>
  <td valign=bottom 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 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none;
  border:none;padding:0in'><font style="font-size: 11.0pt">Number of Securities</font></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none;
  border:none;padding:0in'><font style="font-size: 11.0pt">Available for
  Issuance</font></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none;
  border:none;padding:0in'><font style="font-size: 11.0pt">Under Equity</font></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none;
  border:none;padding:0in'><font style="font-size: 11.0pt">Compensation Plans</font></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none;
  border:none;padding:0in'><font style="font-size: 11.0pt">(excluding services</font></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none;
  border:none;padding:0in'><font style="font-size: 11.0pt">reflected in column
  (a))</font></p>
  </div>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'><font style="font-size: 11.0pt">(a)</font></p>
  </td>
  <td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'><font style="font-size: 11.0pt">(b)</font></p>
  </td>
  <td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'><font style="font-size: 11.0pt">(c)</font></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:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td 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 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none;border:none;
  padding:0in'><font style="font-size: 11.0pt">Plans Approved by</font></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none;border:none;
  padding:0in'><font style="font-size: 11.0pt">Stockholders:</font></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none;border:none;
  padding:0in'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1994 Employee Option Plan</font></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none;border:none;
  padding:0in'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2004 Employee Option Plan</font></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none;border:none;
  padding:0in'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1994 Director Option Plan</font></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none;border:none;
  padding:0in'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2004 Director Option Plan</font></p>
  </div>
  </td>
  <td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none;border:none;
  padding:0in'><font style="font-size: 11.0pt">&nbsp;</font></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none;border:none;
  padding:0in'><font style="font-size: 11.0pt">&nbsp;</font></p>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none;border:medium none;
  padding:0in; margin-left:0in; margin-right:0in; margin-top:0in'><font style="font-size: 11.0pt">565,000</font></p>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none;border:medium none;
  padding:0in; margin-left:0in; margin-right:0in; margin-top:0in'><font style="font-size: 11.0pt">419,500</font></p>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none;border:medium none;
  padding:0in; margin-left:0in; margin-right:0in; margin-top:0in'><font style="font-size: 11.0pt">65,000</font></p>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none;border:medium none;
  padding:0in; margin-left:0in; margin-right:0in; margin-top:0in'><font style="font-size: 11.0pt">230,000</font></p>
  </div>
  </td>
  <td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none;border:none;
  padding:0in'><font style="font-size: 11.0pt">&nbsp;</font></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none;border:none;
  padding:0in'><font style="font-size: 11.0pt">&nbsp;</font></p>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none;border:medium none;
  padding:0in; margin-left:0in; margin-right:0in; margin-top:0in'><font style="font-size: 11.0pt">$1.24</font></p>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none;border:medium none;
  padding:0in; margin-left:0in; margin-right:0in; margin-top:0in'><font style="font-size: 11.0pt">$1.69</font></p>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none;border:medium none;
  padding:0in; margin-left:0in; margin-right:0in; margin-top:0in'><font style="font-size: 11.0pt">$1.40</font></p>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none;border:medium none;
  padding:0in; margin-left:0in; margin-right:0in; margin-top:0in'><font style="font-size: 11.0pt">$2.15</font></p>
  </div>
  </td>
  <td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none;border:none;
  padding:0in'><font style="font-size: 11.0pt">&nbsp;</font></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none;border:none;
  padding:0in'><font style="font-size: 11.0pt">&nbsp;</font></p>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none;border:medium none;
  padding:0in; margin-left:0in; margin-right:0in; margin-top:0in'><font style="font-size: 11.0pt">-</font></p>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none;border:medium none;
  padding:0in; margin-left:0in; margin-right:0in; margin-top:0in'><font style="font-size: 11.0pt">346,046</font></p>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none;border:medium none;
  padding:0in; margin-left:0in; margin-right:0in; margin-top:0in'><font style="font-size: 11.0pt">-</font></p>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none;border:medium none;
  padding:0in; margin-left:0in; margin-right:0in; margin-top:0in'><font style="font-size: 11.0pt">130,000</font></p>
  </div>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none; margin-left:0in; margin-right:0in; margin-top:0in'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td 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 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none;border:none;
  padding:0in'><font style="font-size: 11.0pt">Plans Not Approved by</font></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none;border:none;
  padding:0in'><font style="font-size: 11.0pt">Stockholders:</font></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none;border:none;
  padding:0in'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Warrants<sup>(1)</sup></font></p>
  </div>
  </td>
  <td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none;border:none;
  padding:0in'><font style="font-size: 11.0pt">&nbsp;</font></p>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none;border:medium none;
  padding:0in; margin-left:0in; margin-right:0in; margin-top:0in'><font style="font-size: 11.0pt">&nbsp;</font></p>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none;border:medium none;
  padding:0in; margin-left:0in; margin-right:0in; margin-top:0in'><font style="font-size: 11.0pt">100,000</font></p>
  </div>
  </td>
  <td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none;border:none;
  padding:0in'><font style="font-size: 11.0pt">&nbsp;</font></p>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none;border:medium none;
  padding:0in; margin-left:0in; margin-right:0in; margin-top:0in'><font style="font-size: 11.0pt">&nbsp;</font></p>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none;border:medium none;
  padding:0in; margin-left:0in; margin-right:0in; margin-top:0in'><font style="font-size: 11.0pt">$1.25</font></p>
  </div>
  </td>
  <td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none;border:none;
  padding:0in'><font style="font-size: 11.0pt">&nbsp;</font></p>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none;border:medium none;
  padding:0in; margin-left:0in; margin-right:0in; margin-top:0in'><font style="font-size: 11.0pt">&nbsp;</font></p>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none;border:medium none;
  padding:0in; margin-left:0in; margin-right:0in; margin-top:0in'><font style="font-size: 11.0pt">-</font></p>
  </div>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td 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 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none;border:none;
  padding:0in'><font style="font-size: 11.0pt">Total</font></p>
  </div>
  </td>
  <td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none;border:medium none;
  padding:0in; margin-left:0in; margin-right:0in; margin-top:0in'><font style="font-size: 11.0pt">1,379,500</font></p>
  </div>
  </td>
  <td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none;border:medium none;
  padding:0in; margin-left:0in; margin-right:0in; margin-top:0in'><font style="font-size: 11.0pt">$1.56</font></p>
  </div>
  </td>
  <td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' align="right">
  <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none;border:medium none;
  padding:0in; margin-left:0in; margin-right:0in; margin-top:0in'><font style="font-size: 11.0pt">476,045</font></p>
  </div>
  </td>
 </tr>
</table>

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.5in;text-align:justify;text-indent:-.5in'><font style="font-size: 10.0pt">(1)&nbsp;&nbsp;&nbsp;&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.</font></p>

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

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

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'><b>Item 12.&nbsp;&nbsp; Certain
Relationships and Related Transactions, and Director Independence.</b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:12.0pt;text-indent:.5in;text-autospace:
none'>Messrs. Giannini, Mesenbrink, Healey and Isaac are &#147;independent&#148;
directors as such term is defined in Rule 4200(a)(15) of the Nasdaq Marketplace
Rules.&nbsp; The entire Board of Directors, including Mr. Murphy, our Chief
Executive Officer and President, performs the functions of a nominating
committee.&nbsp; </p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:12.0pt;text-indent:.5in;text-autospace:
none'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:12.0pt;text-autospace:
none; margin-left:0in; margin-right:0in' align="center">-14-</p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<font face="Times New Roman,serif">

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


</font>


<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

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

<div align="left">

<table class=MsoNormalTable border=0 cellpadding=0 width="95%"
 style='border-collapse:collapse'>
 <tr>
  <td valign=top style='padding:0in; ' width="8%">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'><b>Exhibit
  No. </b></p>
  </td>
  <td width=1235 valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'><b>Document
  </b></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding:0in; ' width="8%">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'>&nbsp;</p>
  </td>
  <td width=1235 valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding:0in; ' width="8%">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'>3.1</p>
  </td>
  <td width=1235 valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>Articles of Incorporation
  (incorporated herein by reference to Exhibit 3.1 to the Company&#146;s Form 8-K
  filed April 23, 2007). </p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding:0in; ' width="8%">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'>3.2</p>
  </td>
  <td width=1235 valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>Bylaws (incorporated herein by
  reference to Exhibit 3.2 to the Company&#146;s Form 8-K filed April 23, 2007). </p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding:0in; ' width="8%">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'>&nbsp;</p>
  </td>
  <td width=1235 valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding:0in; ' width="8%">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'>10.1*</p>
  </td>
  <td width=1235 valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>1994 Employees Stock Option
  Plan, as amended (incorporated herein by reference to Exhibit 10.22 to the
  Company&#146;s Registration Statement on Form S-4 filed April 13, 1994).&nbsp;&nbsp; </p>
  </td>
 </tr>
 <tr style='height:30.15pt'>
  <td valign=top style='padding:0in;
  ' width="8%">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'>10.2*<sup>&nbsp;
  </sup></p>
  </td>
  <td width=1235 valign=top style='padding:0in;
  '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>1994 Directors Stock Option
  Plan as amended (incorporated herein by reference to Exhibit 10.22 to the
  Company&#146;s Registration Statement on Form S-4 filed April 13, 1994). </p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding:0in; ' width="8%">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'>10.3*</p>
  </td>
  <td width=1235 valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>First Amended and Restated
  2004 Stock Option Plan (incorporated herein by reference to Exhibit 4.0 to
  the Company&#146;s Form S-8 filed March 9, 2007 ).</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding:0in; ' width="8%">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'>10.4*</p>
  </td>
  <td width=1235 valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>2004 Directors Stock Option
  Plan (incorporated herein by reference to Exhibit 4.2 to the Company&#146;s Form
  S-8 filed January 23, 2004).</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding:0in; ' width="8%">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'>10.5</p>
  </td>
  <td width=1235 valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>Audit Committee Charter
  (incorporated herein by reference to Exhibit 10.26 to the Company&#146;s Form
  10-KSB filed October 1, 2002).</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding:0in; ' width="8%">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'>10.6</p>
  </td>
  <td width=1235 valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>Asset Purchase Agreement,
  dated October 31, 2005 between IntraVantage, Inc. (incorporated herein by
  reference to Exhibit 10.1 to the Company&#146;s Form 8-K filed November 2, 2005).</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding:0in; ' width="8%">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'>10.7</p>
  </td>
  <td width=1235 valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>Exclusive License Agreement,
  dated October 31, 2005, between Pro-Dex, Inc. and IntraVantage, Inc.
  (incorporated herein by reference to Exhibit 10.2 to the Company&#146;s Form 8-K
  filed November 2, 2005).</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding:0in; ' width="8%">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'>10.8&nbsp;
  </p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'>&nbsp;</p>
  </td>
  <td width=1235 valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>Royalty Agreement, dated
  October 31, 2005, between Pro-Dex, Inc. and IntraVantage, Inc. (incorporated
  herein by reference to Exhibit&nbsp; 10.3 to the Company&#146;s Form 8-K filed November
  2, 2005).</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding:0in; ' width="8%">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'>10.9</p>
  </td>
  <td width=1235 valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>Asset Purchase Agreement,
  dated January 5, 2006 between Pro-Dex, Astromec, Inc., Astromec, Inc., M.D.
  Glover, Inc., Malcolm D. Glover, Jr., and Malcolm D. Glover, Sr.
  (incorporated herein by reference to Exhibit 10.1 to the Company&#146;s Form 8-K
  filed January 6, 2006).</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding:0in; ' width="8%">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'>10.10</p>
  </td>
  <td width=1235 valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>Purchase and Sale Agreement
  and Escrow Instructions, dated January 3, 2006, between Pro-Dex, Inc. and
  M.D. Glover, Inc. (incorporated herein by reference to Exhibit 10.2 to the
  Company&#146;s Form 8-K filed January 6, 2006).</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding:0in; ' width="8%">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'>10.11</p>
  </td>
  <td width=1235 valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>Term Note, dated January 4,
  2006, by Pro-Dex, Inc. and Wells Fargo Bank, National Association&nbsp;
  (incorporated herein by reference to Exhibit 10.3 to the Company&#146;s Form 8-K
  filed January 6, 2006).</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding:0in; ' width="8%">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;page-break-after:
  avoid;text-autospace:none'>10.12</p>
  </td>
  <td width=1235 valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";page-break-after:avoid;text-autospace:none'>Loan
  Agreement, dated January 4, 2006, between Pro-Dex, Inc. and Wells Fargo Bank,
  National Association (incorporated herein by reference to Exhibit 10.4 to the
  Company&#146;s Form 8-K filed January 6, 2006).</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding:0in; ' width="8%">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'>10.13</p>
  </td>
  <td width=1235 valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>Promissory Note, dated March
  4, 2006, effective March 30, 2006, by Pro-Dex, Inc. in favor of Union Bank of
  California, National Association&nbsp; (incorporated herein by reference to
  Exhibit 10.1 to the Company&#146;s Form 8-K filed April 3, 2006).</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding:0in; ' width="8%">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'>10.14</p>
  </td>
  <td width=1235 valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>Loan Agreement, dated March 4,
  2006, effective March 30, 2006, by Pro-Dex, Inc. in favor of Union Bank of California, National Association (incorporated herein by reference to Exhibit 10.2 to the
  Company&#146;s Form 8-K filed April 3, 2006).</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding:0in; ' width="8%">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'>10.15*<sup>
  </sup></p>
  </td>
  <td width=1235 valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>Employment Agreement with Mark Murphy dated August 14, 2006 (incorporated herein by reference to Exhibit 10.44 to the
  Company&#146;s Form 10-KSB filed September 28, 2006).</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding:0in; ' width="8%">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'>10.16<sup>
  </sup></p>
  </td>
  <td width=1235 valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>Lease agreement with Irvine
  Business Properties, dated August 17, 2007&nbsp; (incorporated herein by reference
  to Exhibit 10.1 to the Company&#146;s Form 8-K filed August 23, 2007).</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding:0in; ' width="8%">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'>10.17*
  </p>
  </td>
  <td width=1235 valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>Letter Agreement with Patrick Johnson dated October 18, 2006 (incorporated herein by reference to Exhibit 10.1 to the
  Company&#146;s Form 8-K filed October 24, 2006).</p>
  </td>
 </tr>
 </table>

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'><font style="font-size: 10.0pt">&nbsp;</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:12.0pt;text-indent:.5in;text-autospace:
none'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-top:12.0pt;text-autospace:
none; margin-left:0in; margin-right:0in' align="center">-15-</p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<font face="Times New Roman,serif">

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


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

<table class=MsoNormalTable border=0 cellpadding=0 width="95%"
 style='border-collapse:collapse'>
 <tr>
  <td valign=top style='padding:0in; ' width="8%">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'>21.1</p>
  </td>
  <td width=1236 valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>List of Subsidiaries
  (incorporated herein by reference to Exhibit 21.1 to the Company&#146;s Form
  10-KSB filed September 28, 2007).</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding:0in; ' width="8%">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'>23.1</p>
  </td>
  <td width=1236 valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>Consent Letter of Moss Adams LLP
  (incorporated herein by reference to Exhibit 23.1 to the Company&#146;s Form
  10-KSB filed September 22, 2008).</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding:0in; ' width="8%">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'>31.1</p>
  </td>
  <td width=1236 valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>Certification of the Chief
  Executive Officer Required by Rule 13a-14(a) of the Securities Exchange Act
  of 1934, as amended, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley
  Act of 2002 (incorporated herein by reference to Exhibit 31.1 to the
  Company&#146;s Form 10-KSB filed September 22, 2008). </p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding:0in; ' width="8%">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'>31.2</p>
  </td>
  <td width=1236 valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>Certification of the Chief
  Financial Officer Required by Rule 13a-14(a) of the Securities Exchange Act
  of 1934, as amended, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley
  Act of 2002 (incorporated herein by reference to Exhibit 31.2 to the
  Company&#146;s Form 10-KSB filed September 22, 2008).</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding:0in; ' width="8%">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'>31.3<sup>xx</sup></p>
  </td>
  <td width=1236 valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>Certification of the Chief
  Executive Officer Required by Rule 13a-14(a) of the Securities Exchange Act
  of 1934, as amended, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley
  Act of 2002.</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding:0in; ' width="8%">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'>31.4<sup>xx</sup></p>
  </td>
  <td width=1236 valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>Certification of the Chief
  Financial Officer Required by Rule 13a-14(a) of the Securities Exchange Act
  of 1934, as amended, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley
  Act of 2002.</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='padding:0in; ' width="8%">
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center;text-autospace:none'>32</p>
  </td>
  <td width=1236 valign=top style='padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>Certification of the Chief
  Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section
  1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
  (incorporated herein by reference to Exhibit 32 to the Company&#146;s Form 10-KSB
  filed September 22, 2008).</p>
  </td>
 </tr>
</table>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>
<font style="font-size: 10.0pt">*
Denotes management contract or compensatory arrangement. </font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'><sup><font style="font-size: 10.0pt">xx</font></sup><font style="font-size: 10.0pt"> Filed herewith.</font></p>

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

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'><b>Item 14.&nbsp;&nbsp; Principal
Accountant Fees and Services.</b></p>

<p style='mso-style-name:"Body\,b\,stdBod\,cbBody";margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:.5in;font-size:11.0pt;font-family:"Times New Roman","serif";text-align:center;text-indent:0in;page-break-after:
avoid'><b><font style="font-size: 12.0pt">ACCOUNTING FEES</font></b></p>

<p style='mso-style-name:"Body\,b\,stdBod\,cbBody";margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:.5in;font-size:11.0pt;font-family:"Times New Roman","serif";'><a name="_DV_M259"></a><font style="font-size: 12.0pt">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='mso-style-name:"Body\,b\,stdBod\,cbBody";margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:.5in;font-size:11.0pt;font-family:"Times New Roman","serif";page-break-after:avoid'><font style="font-size: 12.0pt">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:</font></p>

<p style='mso-style-name:"Body\,b\,stdBod\,cbBody";margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:.5in;font-size:11.0pt;font-family:"Times New Roman","serif";margin-top:0in'><font style="font-size: 12.0pt">&nbsp;</font></p>

<div align="center">

<table class=MsoNormalTable border=0 cellpadding=0 width="60%"
 style='border-collapse:collapse'>
 <tr style='height:13.05pt'>
  <td valign=bottom style='border-top:medium none;border-left:
  medium none;border-bottom:medium none 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:medium none;
  padding:1.1pt;'>
  <p align="center"><b>Years&nbsp;ended&nbsp;June&nbsp;30,</b></td>
 </tr>
 <tr style='height:13.05pt'>
  <td valign=bottom style='border-top:1px solid #000000;border-left:
  1px solid #000000;border-bottom:medium none windowtext;border-right:medium none windowtext;
  padding-left:4px; padding-right:4px; padding-top:1px; padding-bottom:1px'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>Audit&nbsp;Fees&#185;</p>
  </td>
  <td valign=bottom style='border-top:1px solid windowtext;
  border-left:medium none #000000;border-bottom:medium none windowtext;border-right:medium none #000000;
  padding-left:4px; padding-right:4px; padding-top:1px; padding-bottom:1px'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";' align="right">
	<u><b>2008</b></u></p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";' align="right">$158,000</p>
  </td>
  <td valign=bottom style='border-top:1px solid windowtext;
  border-left:medium none #000000;border-bottom:medium none windowtext;border-right:1px solid #000000;
  padding-left:4px; padding-right:4px; padding-top:1px; padding-bottom:1px'>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>
	<u><b>2007</b></u></p>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>$131,000</p>
  </td>
 </tr>
 <tr style='height:13.05pt'>
  <td valign=bottom style='border-top:medium none #000000;border-left:
  1px solid #000000;border-bottom:medium none windowtext;border-right:medium none windowtext;
  padding-left:4px; padding-right:4px; padding-top:1px; padding-bottom:1px'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>Audit-Related&nbsp;Fees&#178;</p>
  </td>
  <td valign=bottom style='border-top:medium none windowtext;
  border-left:medium none #000000;border-bottom:medium none windowtext;border-right:medium none #000000;
  padding-left:4px; padding-right:4px; padding-top:1px; padding-bottom:1px'>
  <p align="right">$0</td>
  <td valign=bottom style='border-top:medium none windowtext;
  border-left:medium none #000000;border-bottom:medium none windowtext;border-right:1px solid #000000;
  padding-left:4px; padding-right:4px; padding-top:1px; padding-bottom:1px'>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>$2,725</p>
  </td>
 </tr>
 <tr style='height:13.05pt'>
  <td valign=bottom style='border-top:medium none #000000;border-left:
  1px solid #000000;border-bottom:medium none windowtext;border-right:medium none windowtext;
  padding-left:4px; padding-right:4px; padding-top:1px; padding-bottom:1px'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>Tax&nbsp;Fees<sup>&#179;</sup></p>
  </td>
  <td valign=bottom style='border-top:medium none windowtext;
  border-left:medium none #000000;border-bottom:medium none windowtext;border-right:medium none #000000;
  padding-left:4px; padding-right:4px; padding-top:1px; padding-bottom:1px'>
  <p align="right">$59,000</td>
  <td valign=bottom style='border-top:medium none windowtext;
  border-left:medium none #000000;border-bottom:medium none windowtext;border-right:1px solid #000000;
  padding-left:4px; padding-right:4px; padding-top:1px; padding-bottom:1px'>
  <p align="right">$30,570</td>
 </tr>
 <tr style='height:13.05pt'>
  <td valign=bottom style='border-top:medium none #000000;border-left:
  1px solid #000000;border-bottom:medium none windowtext;border-right:medium none windowtext;
  padding-left:4px; padding-right:4px; padding-top:1px; padding-bottom:1px'>
  All&nbsp;Other&nbsp;Fees<sup>4&nbsp;</sup></td>
  <td valign=bottom style='border-top:medium none windowtext;
  border-left:medium none #000000;border-bottom:1px solid windowtext;border-right:medium none #000000;
  padding-left:4px; padding-right:4px; padding-top:1px; padding-bottom:1px' align="right">
  <p align="right">$0</td>
  <td valign=bottom style='border-top:medium none windowtext;
  border-left:medium none #000000;border-bottom:1px solid windowtext;border-right:1px solid #000000;
  padding-left:4px; padding-right:4px; padding-top:1px; padding-bottom:1px'>
  <p align="right">$0</td>
 </tr>
 <tr style='height:13.05pt'>
  <td valign=bottom style='border-top:medium none #000000;border-left:
  1px solid #000000;border-bottom:1px solid windowtext;border-right:medium none windowtext;
  padding-left:4px; padding-right:4px; padding-top:1px; padding-bottom:1px'>
  Total</td>
  <td valign=bottom style='border-top:medium none windowtext;
  border-left:medium none #000000;border-bottom:1px solid windowtext;border-right:medium none #000000;
  padding-left:4px; padding-right:4px; padding-top:1px; padding-bottom:1px' align="right">
  <p align="right">$217,000</td>
  <td valign=bottom style='border-top:medium none windowtext;
  border-left:medium none #000000;border-bottom:1px solid windowtext;border-right:1px solid #000000;
  padding-left:4px; padding-right:4px; padding-top:1px; padding-bottom:1px'>
  <p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:right; margin-left:0in; margin-right:0in; margin-top:0in'>$164,295</p>
  </td>
 </tr>
 </table>

</div>

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

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>

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

</div>

<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman,serif";margin-bottom:.0001pt;text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="2">(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. </font> </p>
<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman,serif";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,serif";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,serif";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,serif";margin-bottom:.0001pt;text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
- -16-</p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<font face="Times New Roman,serif">

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


</font>


<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman,serif";margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:
0in;margin-bottom:.0001pt;text-align:justify'><font size="2">(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. </font> </p>

<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman,serif";margin-bottom:.0001pt; margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="2">&nbsp;</font></p>

<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman,serif";margin-bottom:.0001pt;text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="2">(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. </font> </p>

<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman,serif";margin-bottom:.0001pt; margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="2">&nbsp;</font></p>

<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman,serif";margin-bottom:.0001pt;text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="2">(4) <i>All Other
Fees</i> consist of fees for products and services other than the services
reported above.</font></p>
<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman,serif";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-family:"Times New Roman,serif";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-family:"Times New Roman,serif";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-family:"Times New Roman,serif";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-family:"Times New Roman,serif";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-family:"Times New Roman,serif";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-family:"Times New Roman,serif";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-family:"Times New Roman,serif";margin-bottom:.0001pt;text-align:center; margin-left:0in; margin-right:0in; margin-top:0in'>
- -17-</p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<font face="Times New Roman,serif">

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


</font>

<p style='mso-style-name:"Center Bold\,cb";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","serif";font-weight:bold;'><font style="font-size: 12.0pt">SIGNATURES </font></p>

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

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-indent:.5in;text-autospace:
none'>In accordance with Section 13 or 15(d) of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized. </p>

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

<table class=MsoNormalTable border=0 cellpadding=0
 style='border-collapse:collapse' width="95%">
 <tr>
  <td valign=top style='width:619px;padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>PRO-DEX INC. </p>
  </td>
  <td style='border:none;padding:0in 0in 0in 0in' width=712><p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</td>
 </tr>
 <tr>
  <td valign=top style='width:619px;padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>/ s / Mark P. Murphy&nbsp;</p>
  </td>
  <td valign=top style='width:712px;padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>October 27, 2008</p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:619px;padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>---------------------------------&nbsp;
  </p>
  </td>
  <td valign=top style='width:712px;padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;------------------------------------
  </p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:619px;padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>Mark P. Murphy&nbsp;</p>
  </td>
  <td valign=top style='width:712px;padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>Date </p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:619px;padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>President, Chief Executive
  Officer and Director</p>
  </td>
  <td style='border:none;padding:0in 0in 0in 0in' width=712><p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</td>
 </tr>
 <tr>
  <td valign=top style='width:619px;padding:0in; '>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>(Principal Executive Officer)</p>
  </td>
  <td style='border:none;padding:0in 0in 0in 0in' width=712><p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</td>
 </tr>
</table>

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

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In
accordance with the Exchange Act, this report has been signed below by the
following persons on behalf of the Registrant and in the capacities and on the
dates indicated.</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:justify;text-autospace:none'>&nbsp;</p>

<table class=MsoNormalTable border=0 cellpadding=0 width="95%"
 style='margin-left:-1.8pt;border-collapse:collapse'>
 <tr>
  <td style='border:none;padding:0in 0in 0in 0in' width=2><p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</td>
  <td width=346 valign=top style='width:259.75pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>/ s / Mark P. Murphy&nbsp;</p>
  </td>
  <td width=374 valign=top style='width:280.3pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>October 27, 2008</p>
  </td>
  <td width=24 valign=top style='width:.25in;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td style='border:none;padding:0in 0in 0in 0in' width=2><p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</td>
  <td width=346 valign=top style='width:259.75pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>---------------------------------&nbsp;
  </p>
  </td>
  <td width=374 valign=top style='width:280.3pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;------------------------------------
  </p>
  </td>
  <td width=24 valign=top style='width:.25in;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td style='border:none;padding:0in 0in 0in 0in' width=2><p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</td>
  <td width=346 valign=top style='width:259.75pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>Mark P. Murphy&nbsp;</p>
  </td>
  <td width=374 valign=top style='width:280.3pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>Date </p>
  </td>
  <td width=24 valign=top style='width:.25in;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td style='border:none;padding:0in 0in 0in 0in' width=2><p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</td>
  <td width=346 valign=top style='width:259.75pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>President, Chief Executive
  Officer and Director</p>
  </td>
  <td width=374 valign=top style='width:280.3pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>
  </td>
  <td style='border:none;padding:0in 0in 0in 0in' width=24><p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</td>
 </tr>
 <tr>
  <td style='border:none;padding:0in 0in 0in 0in' width=2><p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</td>
  <td width=346 valign=top style='width:259.75pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>(Principal Executive Officer)</p>
  </td>
  <td width=374 valign=top style='width:280.3pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>
  </td>
  <td style='border:none;padding:0in 0in 0in 0in' width=24><p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</td>
 </tr>
 <tr>
  <td style='border:none;padding:0in 0in 0in 0in' width=2><p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</td>
  <td width=346 valign=top style='width:259.75pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;&nbsp; </p>
  </td>
  <td width=374 valign=top style='width:280.3pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;&nbsp; </p>
  </td>
  <td width=24 valign=top style='width:.25in;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td style='border:none;padding:0in 0in 0in 0in' width=2><p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</td>
  <td width=346 valign=top style='width:259.75pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>/ s / Jeffrey J. Ritchey&nbsp;
  </p>
  </td>
  <td width=374 valign=top style='width:280.3pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>October 27, 2008</p>
  </td>
  <td width=24 valign=top style='width:.25in;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td style='border:none;padding:0in 0in 0in 0in' width=2><p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</td>
  <td width=346 valign=top style='width:259.75pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>---------------------------------&nbsp;
  </p>
  </td>
  <td width=374 valign=top style='width:280.3pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;-------------------------------------
  </p>
  </td>
  <td width=24 valign=top style='width:.25in;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td style='border:none;padding:0in 0in 0in 0in' width=2><p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</td>
  <td width=346 valign=top style='width:259.75pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>Jeffrey J. Ritchey&nbsp;</p>
  </td>
  <td width=374 valign=top style='width:280.3pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>Date </p>
  </td>
  <td width=24 valign=top style='width:.25in;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td style='border:none;padding:0in 0in 0in 0in' width=2><p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</td>
  <td width=346 valign=top style='width:259.75pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>Treasurer, Chief Financial
  Officer &amp; Secretary</p>
  </td>
  <td width=374 valign=top style='width:280.3pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>
  </td>
  <td style='border:none;padding:0in 0in 0in 0in' width=24><p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</td>
 </tr>
 <tr>
  <td style='border:none;padding:0in 0in 0in 0in' width=2><p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</td>
  <td width=346 valign=top style='width:259.75pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>(Principal Financial and
  Accounting Officer) </p>
  </td>
  <td width=374 valign=top style='width:280.3pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>
  </td>
  <td style='border:none;padding:0in 0in 0in 0in' width=24><p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</td>
 </tr>
 <tr>
  <td style='border:none;padding:0in 0in 0in 0in' width=2><p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</td>
  <td width=346 valign=top style='width:259.75pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;&nbsp; </p>
  </td>
  <td width=374 valign=top style='width:280.3pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;&nbsp; </p>
  </td>
  <td width=24 valign=top style='width:.25in;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td style='border:none;padding:0in 0in 0in 0in' width=2><p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</td>
  <td width=346 valign=top style='width:259.75pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>/ s / George J. Isaac&nbsp; </p>
  </td>
  <td width=374 valign=top style='width:280.3pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>October 27, 2008</p>
  </td>
  <td width=24 valign=top style='width:.25in;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td style='border:none;padding:0in 0in 0in 0in' width=2><p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</td>
  <td width=346 valign=top style='width:259.75pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>----------------------------------&nbsp;&nbsp;
  </p>
  </td>
  <td width=374 valign=top style='width:280.3pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>----------------------------------------
  </p>
  </td>
  <td width=24 valign=top style='width:.25in;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td style='border:none;padding:0in 0in 0in 0in' width=2><p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</td>
  <td width=346 valign=top style='width:259.75pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>George J. Isaac&nbsp;</p>
  </td>
  <td width=374 valign=top style='width:280.3pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;Date </p>
  </td>
  <td width=24 valign=top style='width:.25in;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td style='border:none;padding:0in 0in 0in 0in' width=2><p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</td>
  <td width=346 valign=top style='width:259.75pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>Director</p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>
  </td>
  <td width=374 valign=top style='width:280.3pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>
  </td>
  <td width=24 valign=top style='width:.25in;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td style='border:none;padding:0in 0in 0in 0in' width=2><p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</td>
  <td width=346 valign=top style='width:259.75pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>/ s / Michael Mesenbrink&nbsp;</p>
  </td>
  <td width=374 valign=top style='width:280.3pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>October 27, 2008</p>
  </td>
  <td style='border:none;padding:0in 0in 0in 0in' width=24><p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</td>
 </tr>
 <tr>
  <td style='border:none;padding:0in 0in 0in 0in' width=2><p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</td>
  <td width=346 valign=top style='width:259.75pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>---------------------------------&nbsp;
  </p>
  </td>
  <td width=374 valign=top style='width:280.3pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>----------------------------------------</p>
  </td>
  <td width=24 valign=top style='width:.25in;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td style='border:none;padding:0in 0in 0in 0in' width=2><p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</td>
  <td width=346 valign=top style='width:259.75pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>Michael Mesenbrink&nbsp;</p>
  </td>
  <td width=374 valign=top style='width:280.3pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>Date</p>
  </td>
  <td width=24 valign=top style='width:.25in;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td style='border:none;padding:0in 0in 0in 0in' width=2><p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</td>
  <td width=346 valign=top style='width:259.75pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>Director</p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>
  </td>
  <td width=374 valign=top style='width:280.3pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>
  </td>
  <td width=24 valign=top style='width:.25in;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td style='border:none;padding:0in 0in 0in 0in' width=2><p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</td>
  <td width=346 valign=top style='width:259.75pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>/ s / Valerio Giannini&nbsp;</p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>---------------------------------&nbsp;</p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>Valerio Gianinni&nbsp;</p>
  </td>
  <td width=374 valign=top style='width:280.3pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>October 27, 2008</p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>----------------------------------------</p>
  </td>
  <td width=24 valign=top style='width:.25in;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td style='border:none;padding:0in 0in 0in 0in' width=2><p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</td>
  <td width=346 valign=top style='width:259.75pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>Director</p>
  </td>
  <td width=374 valign=top style='width:280.3pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;Date</p>
  </td>
  <td style='border:none;padding:0in 0in 0in 0in' width=24><p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</td>
 </tr>
 <tr>
  <td style='border:none;padding:0in 0in 0in 0in' width=2><p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</td>
  <td width=346 valign=top style='width:259.75pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>/ s / William L. Healey&nbsp;</p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>---------------------------------&nbsp;</p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>William L. Healey&nbsp;</p>
  </td>
  <td width=374 valign=top style='width:280.3pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;</p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>October 27, 2008</p>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>----------------------------------------</p>
  </td>
  <td style='border:none;padding:0in 0in 0in 0in' width=24><p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</td>
 </tr>
 <tr>
  <td style='border:none;padding:0in 0in 0in 0in' width=2><p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</td>
  <td width=346 valign=top style='width:259.75pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>Director</p>
  </td>
  <td width=374 valign=top style='width:280.3pt;padding:0in 0in 0in 0in'>
  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-autospace:none'>&nbsp;Date</p>
  </td>
  <td style='border:none;padding:0in 0in 0in 0in' width=24><p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</td>
 </tr>
 </table>

<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";text-align:center'>

<p style="font-size: 12.0pt; font-family: 'Times New Roman',serif; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&nbsp;</p>
<p style="font-size: 12.0pt; font-family: 'Times New Roman',serif; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">
- -18-</p>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

</div>

</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.3
<SEQUENCE>2
<FILENAME>ex31-3.htm
<TEXT>
<html>

<head>

<title>EXHIBIT 31.3</title>
</head>

<body>

<p style='mso-style-name:"Flush Left\&#039;,fl; text-align: left; font-size: 11.0pt; font-family: Times New Roman&#039;,serif";margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;'>&nbsp;</p>
<p style='mso-style-name:"Flush Left\&#039;,fl; text-align: left; font-size: 11.0pt; font-family: Times New Roman&#039;,serif";margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;'>
<b><font style="font-size: 12.0pt">EXHIBIT 31.3</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>I, Mark P. Murphy, certify that:</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.5in;text-align:justify;text-indent:-.5in'>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I
have reviewed this Amendment No. 1 to Form 10-KSB of Pro-Dex, Inc.; and</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.5in;text-align:justify;text-indent:-.5in'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.5in;text-align:justify;text-indent:-.5in'>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based
on my knowledge, this annual report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements
made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.5in;text-align:justify;text-indent:-.5in'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>Date: October 27, 2008</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>/s/
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mark P. Murphy</u>_______</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mark
P. Murphy</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chief
Executive Officer</p>

</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.4
<SEQUENCE>3
<FILENAME>ex31-4.htm
<TEXT>
<html>

<head>
<title>EXHIBIT 31.4</title>
</head>

<body>

&nbsp;<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b>EXHIBIT 31.4</b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'><b>&nbsp;</b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>I, Jeffrey J. Ritchey, certify that: </p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.5in;text-align:justify;text-indent:-.5in'>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I
have reviewed this Amendment No. 1 to Form 10-KSB of Pro-Dex, Inc.; and</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.5in;text-align:justify;text-indent:-.5in'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.5in;text-align:justify;text-indent:-.5in'>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based
on my knowledge, this annual report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements
made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report.</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:.5in;text-align:justify;text-indent:-.5in'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:1.0in;text-align:justify;text-indent:
- -.5in'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";margin-left:1.0in;text-align:justify;text-indent:
- -.5in'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>Date: October 27, 2008</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>/s/
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JEFFREY J. RITCHEY</u>_______</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Jeffrey
J. Ritchey</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman","serif";'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chief
Financial Officer</p>

</body>

</html>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
