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<SEC-DOCUMENT>0001003297-10-000243.txt : 20101012
<SEC-HEADER>0001003297-10-000243.hdr.sgml : 20101011
<ACCEPTANCE-DATETIME>20101012152717
ACCESSION NUMBER:		0001003297-10-000243
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20101006
ITEM INFORMATION:		Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20101012
DATE AS OF CHANGE:		20101012

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:			0630

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-14942
		FILM NUMBER:		101119056

	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>8-K
<SEQUENCE>1
<FILENAME>espdex8k.htm
<TEXT>
<html>

<head>
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<title>Pro-Dex Inc. Form 8-K</title>



</head>

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

<div style='page:Section1;'>

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

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

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

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

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:center;font-size:12.0pt;font-family:"Times New Roman";'><b>UNITED STATES</b></p>

<p style='margin:0in;margin-bottom:.0001pt;text-align:center;font-size:12.0pt;font-family:"Times New Roman";'><b>SECURITIES AND EXCHANGE COMMISSION</b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";text-align:center'><b><font style="font-size: 12.0pt">Washington</font></b><b><font style="font-size: 12.0pt">,
 D.C.</font></b><b><font style="font-size: 12.0pt"> 20549</font></b></p>

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

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

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";text-align:center'><b><font style="font-size: 12.0pt">FORM 8-K</font></b></p>

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

<h2 style='margin:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:12.0pt;font-family:"Times New Roman";font-weight:bold;'>CURRENT REPORT</h2>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";text-align:center'><b><font style="font-size: 12.0pt">Pursuant to Section 13 OR 15(d) of the</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";text-align:center'><b><font style="font-size: 12.0pt">Securities Exchange Act of 1934</font></b></p>

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

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";text-align:center'><font style="font-size: 12.0pt">Date of Report </font></p>

<h1 style='margin:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;'>(Date of earliest event reported)<b> </b></h1>

<h1 style='margin:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;'><b>October 6, 2010</b></h1>

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

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

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";text-align:center'><b><font style="font-size: 12.0pt">PRO-DEX, INC.</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";text-align:center'><font style="font-size: 12.0pt">(Exact name of registrant as specified in its charter)</font></p>

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

<table border="0" style="border-collapse: collapse" width="100%" id="table1">
	<tr>
		<td align="center" width="33%">

<p style='margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";text-align:center; margin-top:0in'><b><font style="font-size: 12.0pt">COLORADO</font></b></p>

		</td>
		<td align="center" width="34%"><b>&nbsp;<font style="font-size: 12.0pt">0-14942</font></b></td>
		<td align="center" width="33%"><b><font style="font-size: 12.0pt">
		84-1261240</font></b></td>
	</tr>
	<tr>
		<td align="center" width="33%">

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

		</td>
		<td align="center" width="34%"><font style="font-size: 12.0pt">
		(Commission File Number)</font></td>
		<td align="center" width="33%"><font style="font-size: 12.0pt">(I.R.S.
Employer </font></td>
	</tr>
	<tr>
		<td align="center" width="33%">

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

		</td>
		<td align="center" width="34%">&nbsp;</td>
		<td align="center" width="33%"><font style="font-size: 12.0pt">
		Identification Number)</font></td>
	</tr>
	<tr>
		<td align="center" width="33%">

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

		</td>
		<td align="center" width="34%">&nbsp;</td>
		<td align="center" width="33%">&nbsp;</td>
	</tr>
</table>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";text-align:center'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";text-align:center'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";text-align:center'>
<b>2361 McGaw Avenue</b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";text-align:center'><b>Irvine</b><b>, Ca.
92614</b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";text-align:center'><font style="font-size: 12.0pt">(Address of principal executive offices, zip code)</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";text-align:center'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";text-align:center'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";text-align:center'>
<b><font style="font-size: 12.0pt">(949) 769-3200</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";text-align:center'><font style="font-size: 12.0pt">(Registrant&#146;s telephone number, including area code)</font></p>

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

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";text-autospace:none'>Check the appropriate box below
if the Form 8-K filing is intended to simultaneously satisfy the filing
obligation of the registrant under any of the following provisions ( <i>see </i>General
Instruction A.2. below): </p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";text-autospace:none'>&nbsp;&nbsp;&nbsp;&nbsp; [ ]
&nbsp;Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425) </p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";text-autospace:none'>&nbsp;&nbsp;&nbsp;&nbsp; [ ]
&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12) </p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";text-autospace:none'>&nbsp;&nbsp;&nbsp;&nbsp; [ ]
&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b)) </p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";text-autospace:none'>&nbsp;&nbsp;&nbsp;&nbsp; [ ]
&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c)) </p>

<p style="font-size: 10.0pt; font-family: Times New Roman; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&nbsp;</p>
<p style="font-size: 10.0pt; font-family: Times New Roman; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&nbsp;</p>
<p style="font-size: 10.0pt; font-family: Times New Roman; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&nbsp;</p>
<p style="font-size: 10.0pt; font-family: Times New Roman; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&nbsp;</p>
<p style="font-size: 10.0pt; font-family: Times New Roman; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&nbsp;
</p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";text-align:center'>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

</div>

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

<div style='page:Section2;'>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

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

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

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

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";text-autospace:none'><b><font style="font-size: 12.0pt">
<u>Item
5.02</u>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Departure of Directors or Certain Officers; Election of
Directors;</u></font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";text-autospace:none'><b><font style="font-size: 12.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Appointment
of Certain Officers; Compensatory Arrangements of</u></font></b></p>

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

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

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

<p style='font-family:"Times New Roman"; margin-left:0in; margin-right:0in'><i>Resignation of
Chief Financial Officer.</i></p>

<p style='font-family:"Times New Roman"; margin-left:0in; margin-right:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On October
6, 2010, Pro-Dex, Inc. (the &#147;Company&#148;) reported that Jeffrey S. Ritchey, the Company&#146;s
Chief Financial Officer, resigned from his employment with the Company,
effective October 5, 2010 (the &#147;Separation Date&#148;). On October 7, 2010, the
Company and Mr. Ritchey entered into a Separation Agreement and General Release
of All Claims (&#147;Separation Agreement&#148;) concerning the conclusion of Mr. Ritchey&#146;s
employment services with the Company. A complete copy of the Separation
Agreement is attached to this report as Exhibit 10.1 and the summary set forth
below is qualified in its entirety by the full text of the Separation
Agreement. </p>

<p style='font-family:"Times New Roman"; margin-left:0in; margin-right:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Under
the terms of the Separation Agreement, Mr. Ritchey will be paid all unpaid base
salary, unreimbursed business expenses, less state and federal taxes and other
required withholding, for the period through the Separation Date. </p>

<p style='font-family:"Times New Roman"; margin-left:0in; margin-right:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provided
that the Separation Agreement has not been revoked by Mr. Ritchey prior to the
expiration of the seven day revocation period described below, the Company will,
among other things, also: (i) pay Mr. Ritchey severance compensation in the
gross amount of $85,000, representing six months of Mr. Ritchey&#146;s base salary
at the annual rate in effect as of the Separation Date, which will be paid in
substantially equal installments on the Company&#146;s regularly scheduled payroll
dates over a six month period beginning with the next regularly scheduled
payroll date following the Separation Date; and (ii) provided Mr. Ritchey
elected coverage under the Company&#146;s group health insurance program prior to
the Separation Date and makes a timely election for continued coverage pursuant
to COBRA, continue to pay the Company&#146;s portion of the monthly premiums for
such continued coverage under the Company&#146;s group health insurance program for
a period from the Separation Date through April 30, 2011.</p>

<p style='font-family:"Times New Roman"; margin-left:0in; margin-right:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mr. Ritchey
has provided the Company and its affiliates with a general release of claims,
subject to certain statutory exceptions set forth in the Separation Agreement.</p>

<p style='font-family:"Times New Roman"; margin-left:0in; margin-right:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pursuant
to applicable law, Mr. Ritchey has a period of seven calendar days to revoke
the Separation Agreement by providing the Company with written notice of such
revocation. Any revocation of the Separation Agreement, however, shall not
affect the finality of the separation of Mr. Ritchey&#146;s employment with the
Company on the Separation Date. </p>

<p style='font-family:"Times New Roman"; margin-left:0in; margin-right:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In
connection with Mr. Ritchey&#146;s resignation, the Company has entered into a
consulting agreement to engage Mr. Ritchey as an independent contractor through
December 31, 2010, for a total consulting fee of $20,000.&nbsp; In the event the
Company requests, and Mr. Ritchey performs, services for the Company in excess
of 200 hours during the term of the consulting agreement, the Company will pay
$100 per hour for each such excess hour of service performed.</p>

<p style='font-family:"Times New Roman"; margin-left:0in; margin-right:0in'>(c)</p>

<p style='font-family:"Times New Roman"; margin-left:0in; margin-right:0in'><i>Appointment of
New Chief Financial Officer and Employment Arrangement Between the Company and
Harold A. Hurwitz.</i></p>
<p style='font-family:"Times New Roman"; margin-left:0in; margin-right:0in'>&nbsp;</p>
<p style='font-family:"Times New Roman"; margin-left:0in; margin-right:0in' align="center">
<font size="2">2</font></p>
<p style='font-family:"Times New Roman"; margin-left:0in; margin-right:0in' align="center">&nbsp;</p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";text-align:center'>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

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


<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='font-size:10.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in'>&nbsp;</p>

<p style='font-size:10.0pt;font-family:"Times New Roman";line-height:1.0pt; margin-left:0in; margin-right:0in'>&nbsp;</p>

<p style='font-family:"Times New Roman"; margin-left:0in; margin-right:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On October
6, 2010, pursuant to authorization by the Board of Directors (the &#147;Board&#148;) of the
Company, Harold A. Hurwitz began service as the Company&#146;s Chief Financial
Officer.&nbsp; Prior to his appointment, Mr. Hurwitz, age 58, was an independent
consultant.&nbsp; From April 2008 to February 2010, Mr. Hurwitz served as Chief
Financial Officer and Vice President of Interventional Spine, Inc., a medical
device company.&nbsp; Prior to joining Interventional Spine in April 2008, Mr.
Hurwitz served as Principal Consultant with McDermott &amp; Bull from December
2005 to March 2008.&nbsp; Mr. Hurwitz has also served as an independent consultant
from December 2004 to December 2005.&nbsp; He was Chief Financial Officer of Micro
Therapeutics Inc. from December 1997 to December 2004 and also served as its
Principal Accounting Officer until December 2004.&nbsp; Earlier in his career, Mr.
Hurwitz was an employee and Partner with Coopers &amp; Lybrand L.L.P., where he
was a Business Assurance Partner, Team Leader of its Orange County Medical
Device Practice and an SEC Review Partner. He has a broad financial background
that includes more than 30 years of public accounting and financial management experience.&nbsp;
In addition, he has leadership experience in human resources and information
technology, diversified fund raising and Sarbanes-Oxley compliance. &nbsp;Mr.
Hurwitz holds a B.A. in Economics from the University of California, Los
Angeles.</p>

<p style='font-family:"Times New Roman"; margin-left:0in; margin-right:0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In
connection with the appointment, the Company and Mr. Hurwitz entered into an
at-will employment arrangement (&#147;Employment Arrangement&#148;).&nbsp; The Employment
Arrangement is attached to this report as Exhibit 10.2, which exhibit is
incorporated herein by this reference.&nbsp; Under the terms of the Employment
Arrangement, Mr. Hurwitz will report to the Chief Executive Officer of the
Company and his compensation will consist of the following components:</p>

<ul>
	<li>
	<p style='font-family:"Times New Roman";margin-right:0in'>A base salary at an
annualized rate of $185,000.</p></li>
	<li>
	<p style='font-family:"Times New Roman";margin-right:0in'>Participation in the
Company&#146;s Annual Incentive Plan and Long Term Incentive Plan.</p></li>
	<li>
	<p style='font-family:"Times New Roman";margin-right:0in'>Mr. Hurwitz is
permitted to participate in any program of stock options or other equity grants
which the Company may from time to time provide key employees. Such grants are
made under the terms and provisions of the First Amended and Restated 2004
Stock Option Plan.&nbsp;&nbsp; Subject to the foregoing, the initial grant under this
program is 20,000 options to purchase the Company&#146;s common shares at the
average of the high and low prices for the Company&#146;s shares on the grant date
and which will vest ratably over the 36 month period following the grant date.&nbsp;
The options will have a term of ten years from the grant date and to the
maximum extent permissible under the relevant Internal Revenue Service
regulations, will be made as Incentive Stock Options.</p></li>
	<li>
	<p style='font-family:"Times New Roman";margin-right:0in'>Health, dental,
disability and life insurance, qualified retirement plans, and optional
employee benefits of the Company on the same terms as other employees of the
Company, except Mr. Hurwitz will not participate in the Company-wide employee bonus
plan.</p></li>
</ul>

<p style='font-family:"Times New Roman"; margin-left:0in; margin-right:0in'>(e)</p>

<p style='font-family:"Times New Roman"; margin-left:0in; margin-right:0in'><i>Amendment to
Compensatory Plan.</i></p>
<p style='font-family:"Times New Roman"; text-indent:0.5in; margin-left:0in; margin-right:0in'>On October
7, 2010, the Board, upon recommendation of the Company&#146;s Compensation
Committee, approved certain amendments to the Company&#146;s Long-Term Incentive
Plan (the &#147;LTIP&#148;) to make clear its conformity with the terms and provisions of
the Company&#146;s First Amended and Restated 2004 Stock Option Plan.&nbsp; The LTIP, as
amended, is attached to this report as Exhibit 10.3, which exhibit is
incorporated herein by reference.</p>

<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in' align="center">
<font size="2">&nbsp;3</font></p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in' align="center">&nbsp;</p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";text-align:center'>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

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


<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

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

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

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

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";'><b><u><font style="font-size: 12.0pt">Item 9.01</font></u></b><b><font style="font-size: 12.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Financial Statements and
Exhibits.</u></font></b></p>

<table border="0" style="border-collapse: collapse" width="100%" id="table2">
	<tr>
		<td nowrap valign="top" style="width: 0.5in">&nbsp;</td>
		<td nowrap width="117" valign="top">&nbsp;</td>
		<td width="1188" valign="top">&nbsp; </td>
	</tr>
	<tr>
		<td nowrap valign="top" style="width: 0.5in"><font style="font-size: 12.0pt">(d)</font></td>
		<td nowrap width="117" valign="top"><font style="font-size: 12.0pt">
		Exhibit.</font></td>
		<td width="1188" valign="top">

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

		</td>
	</tr>
	<tr>
		<td nowrap valign="top" style="width: 0.5in">&nbsp;</td>
		<td nowrap width="117" valign="top">&nbsp;</td>
		<td width="1188" valign="top">

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

		</td>
	</tr>
	<tr>
		<td nowrap valign="top" style="width: 0.5in">&nbsp;</td>
		<td nowrap width="117" valign="top"><font style="font-size: 12.0pt">
		Exhibit 10.1</font></td>
		<td width="1188" valign="top">

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";'>
<font size="3">Separation Agreement between Pro-Dex, Inc.
and Jeffrey S. Ritchey,<br>
dated October 7, 2010.</font></p>

		</td>
	</tr>
	<tr>
		<td nowrap valign="top" style="width: 0.5in">&nbsp;</td>
		<td nowrap width="117" valign="top">&nbsp;</td>
		<td width="1188" valign="top">

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

		</td>
	</tr>
	<tr>
		<td nowrap valign="top" style="width: 0.5in">&nbsp;</td>
		<td nowrap width="117" valign="top"><font style="font-size: 12.0pt">
		Exhibit 10.2 </font></td>
		<td width="1188" valign="top">

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";'>
<font style="font-size: 12.0pt">Employment
Arrangement between Pro-Dex, Inc. and Harold A. Hurwitz.</font></p>

		</td>
	</tr>
	<tr>
		<td nowrap valign="top" style="width: 0.5in">&nbsp;</td>
		<td nowrap width="117" valign="top">&nbsp;</td>
		<td width="1188" valign="top">

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

		</td>
	</tr>
	<tr>
		<td nowrap valign="top" style="width: 0.5in">&nbsp;</td>
		<td nowrap width="117" valign="top"><font style="font-size: 12.0pt">
		Exhibit 10.3</font></td>
		<td width="1188" valign="top">

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";'>
<font style="font-size: 12.0pt">Long-Term
Incentive Plan as amended on October 7, 2010.</font></p>

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

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=744
 style='width:7.75in;border-collapse:collapse'>
 <tr>
  <td width=252 valign=bottom style='width:189.0pt;padding:0in 1.8pt 0in 1.8pt'>
  &nbsp;</td>
  <td width=120 valign=bottom style='width:1.25in;padding:0in 1.8pt 0in 1.8pt'>
  &nbsp;</td>
  <td width=120 valign=bottom style='width:1.25in;padding:0in 1.8pt 0in 1.8pt'>
  &nbsp;</td>
  <td width=252 valign=bottom style='width:189.0pt;padding:0in 1.8pt 0in 1.8pt'>
  &nbsp;</td>
 </tr>
</table>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";'><font style="font-size: 8.0pt">&nbsp;</font></p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";text-align:center'>

<p style="font-size: 10.0pt; font-family: Times New Roman; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&nbsp;</p>
<p style="font-size: 10.0pt; font-family: Times New Roman; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&nbsp;</p>
<p style="font-size: 10.0pt; font-family: Times New Roman; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&nbsp;</p>
<p style="font-size: 10.0pt; font-family: Times New Roman; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&nbsp;</p>
<p style="font-size: 10.0pt; font-family: Times New Roman; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&nbsp;</p>
<p style="font-size: 10.0pt; font-family: Times New Roman; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&nbsp;</p>
<p style="font-size: 10.0pt; font-family: Times New Roman; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&nbsp;</p>
<p style="font-size: 10.0pt; font-family: Times New Roman; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&nbsp;</p>
<p style="font-size: 10.0pt; font-family: Times New Roman; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&nbsp;</p>
<p style="font-size: 10.0pt; font-family: Times New Roman; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&nbsp;</p>
<p style="font-size: 10.0pt; font-family: Times New Roman; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&nbsp;</p>
<p style="font-size: 10.0pt; font-family: Times New Roman; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&nbsp;</p>
<p style="font-size: 10.0pt; font-family: Times New Roman; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&nbsp;</p>
<p style="font-size: 10.0pt; font-family: Times New Roman; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&nbsp;</p>
<p style="font-size: 10.0pt; font-family: Times New Roman; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&nbsp;</p>
<p style="font-size: 10.0pt; font-family: Times New Roman; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">
4</p>
<p style="font-size: 10.0pt; font-family: Times New Roman; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&nbsp;</p>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

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


<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

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

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";text-align:center'><b><font style="font-size: 12.0pt">SIGNATURES</font></b></p>

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

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

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pursuant to the requirements of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.</p>

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

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

<table border="0" style="border-collapse: collapse" width="100%" id="table3">
	<tr>
		<td width="50%"><font style="font-size: 12.0pt">Date:&nbsp; October 11, 2010</font></td>
		<td width="50%">

<p style='margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman"; margin-top:0in'>
<font style="font-size: 12.0pt"><b>PRO-DEX, Inc (Registrant).</b></font></p>

		</td>
	</tr>
	<tr>
		<td width="50%">&nbsp;</td>
		<td width="50%">

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

		</td>
	</tr>
	<tr>
		<td width="50%">&nbsp;</td>
		<td width="50%">

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

		</td>
	</tr>
	<tr>
		<td width="50%">&nbsp;</td>
		<td width="50%">

<p style='margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";margin-top:0in'><font style="font-size: 12.0pt">By:
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>/s/&nbsp; Mark P. Murphy&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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></font></p>

		</td>
	</tr>
	<tr>
		<td width="50%">&nbsp;</td>
		<td width="50%">

<h3 style='margin-top:0in;margin-bottom:0in;margin-bottom:.0001pt;page-break-after:avoid;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mark P. Murphy<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Chief Executive Officer</h3>

		</td>
	</tr>
	<tr>
		<td width="50%">&nbsp;</td>
		<td width="50%">&nbsp;</td>
	</tr>
</table>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";'><font style="font-size: 8.0pt">&nbsp;</font></p>

<div style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";text-align:center'>

<p style="font-size: 10.0pt; font-family: Times New Roman; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&nbsp;</p>
<p style="font-size: 10.0pt; font-family: Times New Roman; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&nbsp;</p>
<p style="font-size: 10.0pt; font-family: Times New Roman; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&nbsp;</p>
<p style="font-size: 10.0pt; font-family: Times New Roman; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&nbsp;</p>
<p style="font-size: 10.0pt; font-family: Times New Roman; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&nbsp;</p>
<p style="font-size: 10.0pt; font-family: Times New Roman; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&nbsp;</p>
<p style="font-size: 10.0pt; font-family: Times New Roman; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&nbsp;</p>
<p style="font-size: 10.0pt; font-family: Times New Roman; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&nbsp;</p>
<p style="font-size: 10.0pt; font-family: Times New Roman; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&nbsp;</p>
<p style="font-size: 10.0pt; font-family: Times New Roman; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&nbsp;</p>
<p style="font-size: 10.0pt; font-family: Times New Roman; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&nbsp;</p>
<p style="font-size: 10.0pt; font-family: Times New Roman; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&nbsp;</p>
<p style="font-size: 10.0pt; font-family: Times New Roman; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&nbsp;</p>
<p style="font-size: 10.0pt; font-family: Times New Roman; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&nbsp;</p>
<p style="font-size: 10.0pt; font-family: Times New Roman; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&nbsp;</p>
<p style="font-size: 10.0pt; font-family: Times New Roman; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&nbsp;</p>
<p style="font-size: 10.0pt; font-family: Times New Roman; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&nbsp;</p>
<p style="font-size: 10.0pt; font-family: Times New Roman; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">
5</p>
<p style="font-size: 10.0pt; font-family: Times New Roman; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin-bottom: .0001pt">&nbsp;</p>

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

</div>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

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


<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

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

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";text-align:center'><b><font style="font-size: 12.0pt">INDEX TO EXHIBITS</font></b></p>

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

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

<h4 style='margin:0in;margin-bottom:.0001pt;page-break-after:avoid;font-size:12.0pt;font-family:"Times New Roman";font-weight:bold;'>&nbsp;&nbsp;  Exhibit</h4>

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

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";'><font style="font-size: 12.0pt">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<table border="0" style="border-collapse: collapse" width="100%" id="table4">
	<tr>
		<td nowrap valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </td>
		<td nowrap width="117" valign="top"><font style="font-size: 12.0pt">
		Exhibit 10.1</font></td>
		<td width="1188" valign="top">

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";'>
<font size="3">Separation Agreement between Pro-Dex, Inc.
and Jeffrey S. Ritchey,<br>
dated October 7, 2010.</font></p>

		</td>
	</tr>
	<tr>
		<td nowrap valign="top">&nbsp;</td>
		<td nowrap width="117" valign="top">&nbsp;</td>
		<td width="1188" valign="top">

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

		</td>
	</tr>
	<tr>
		<td nowrap valign="top">&nbsp;</td>
		<td nowrap width="117" valign="top"><font style="font-size: 12.0pt">
		Exhibit 10.2 </font></td>
		<td width="1188" valign="top">

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";'>
<font style="font-size: 12.0pt">Employment
Arrangement between Pro-Dex, Inc. and Harold A. Hurwitz.</font></p>

		</td>
	</tr>
	<tr>
		<td nowrap valign="top">&nbsp;</td>
		<td nowrap width="117" valign="top">&nbsp;</td>
		<td width="1188" valign="top">

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

		</td>
	</tr>
	<tr>
		<td nowrap valign="top">&nbsp;</td>
		<td nowrap width="117" valign="top"><font style="font-size: 12.0pt">
		Exhibit 10.3</font></td>
		<td width="1188" valign="top">

<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";'>
<font style="font-size: 12.0pt">Long-Term
Incentive Plan as amended on October 7, 2010.</font></p>

		</td>
	</tr>
</table>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:10.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp; </p>
<p style='margin-bottom:.0001pt;font-size:12pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>&nbsp;</p>
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<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>es10-1.htm
<TEXT>
<html>

<head>
<!-- Document Prepared With IDEAxfiler Software-->
<!-- Copyright 2009 IDEAxfiler TRADEMARK-->
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<title>Exhibit 10.1</title>


</head>

<body lang=EN-US>

<div style='page:Section1;'>

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

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

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

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

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

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

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";margin-top:0in;text-indent:0in'><b>EXHIBIT 10.1</b></p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:12.0pt;font-family:"Times New Roman";font-weight:bold;text-decoration:underline;'>SEPARATION AGREEMENT AND
GENERAL RELEASE OF ALL CLAIMS</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";'>This SEPARATION AGREEMENT AND GENERAL
RELEASE OF ALL CLAIMS, (&#147;Agreement&#148;) is made and entered into by and between
JEFFREY J. RITCHEY (&#147;Employee&#148;) and PRO-DEX, Inc., a Colorado corporation (&#147;the
Company&#148;).</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:12.0pt;font-family:"Times New Roman";font-weight:bold;'>RECITALS</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";'>WHEREAS, Employee has been employed by
the Company in the positions of Treasurer, Chief Financial Officer, and
Secretary.&nbsp; </p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";'>WHEREAS, Employee and the Company are
parties to that certain December 5, 2007 letter agreement signed by
Employee and by Mark P. Murphy on behalf of the Company, the provisions of
which letter agreement the parties intend to supersede through their entry into
this Agreement; and</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";'>WHEREAS, Employee&#146;s employment with the
Company will separate on October 5, 2010 (the &#147;Separation Date&#148;), and the
Company and Employee mutually desire to settle fully and finally all
obligations to Employee that the Company may have of any nature whatsoever, as
well as any asserted or unasserted claims that Employee may have arising out of
his employment with the Company or the separation of that employment.</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:12.0pt;font-family:"Times New Roman";font-weight:bold;'>AGREEMENT</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";'>NOW, THEREFORE, in consideration of the
foregoing Recitals, the mutual covenants and agreements and the terms and
conditions set forth herein and other valuable consideration, the parties agree
as follows:</p>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'><b>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Compensation Through Separation
Date</b>.&nbsp; On the Separation Date, Employee
will be paid all unpaid base salary, unpaid bonuses earned, unreimbursed
business expenses, together with any accrued but unused vacation pay, less state
and federal taxes and other required withholding, for the period from the last
regular pay day through the Separation Date.&nbsp; Employee acknowledges and agrees
that upon the receipt of the foregoing payment, the Company will have paid to
him all salary, bonuses, benefits, accrued vacation pay, or other consideration
owed to him at any time and for any reason through the Separation Date.&nbsp;
Employee further represents and agrees that no further sums are or were due and
owing Employee either by the Company or by any individual or entity related to
the Company in any way, except as provided for in this Agreement.&nbsp; </h1>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'><b>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective Date</b>.&nbsp; The Effective Date of this Agreement shall be the eighth
day after Employee&#146;s dated execution of this Agreement, provided that Employee
has not revoked this Agreement pursuant to <u>Paragraph 13</u>.&nbsp; </h1>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<table border="0" cellpadding="0" style="border-collapse: collapse" width="100%" id="table1">
	<tr>
		<td width="33%">&nbsp;&nbsp; </td>
		<td width="34%">&nbsp;</td>
		<td width="33%">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";text-align:right'><font style="font-size: 11.0pt">Initials: ____</font></p>
  		</td>
	</tr>
	<tr>
		<td width="33%">&nbsp;</td>
		<td width="34%">
		<p align="center">-1-</td>
		<td width="33%">
		<p align="right"><font style="font-size: 11.0pt">____</font></td>
	</tr>
</table>
<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

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

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

</div>

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

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


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

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

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

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

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'><b>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Special Additional Compensation</b>.&nbsp;
In consideration of this Agreement, and provided that none of the provisions of
<u>Paragraph 4</u> has been violated, and that the revocation period referenced
in <u>Paragraph 13</u> shall have expired <u>without this Agreement having been
revoked</u>, the Company also will do the following:&nbsp; </h1>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;'>A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continue to pay Employee, over a period of six months from the
Separation Date, in regular installments on the Company&#146;s regular payroll pay
dates for exempt employees, a gross amount equal to Employee&#146;s last regular
bi-weekly salary until the total gross payments have reached the amount of Eighty-Five
Thousand Dollars ($85,000), less applicable legal deductions and withholdings
(the &#147;Separation Agreement Payment&#148;).&nbsp;&nbsp;&nbsp; </h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;'>B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As additional consideration for the promises and obligations contained
herein, and provided Employee elected coverage under the Company&#146;s group health
insurance program prior to the Separation Date and makes a timely election for
continued coverage pursuant to COBRA, the Company further agrees to pay the
Company&#146;s portion of the monthly premiums for such continued coverage under the
Company&#146;s group health insurance program for a period from the Separation Date
through April 30, 2011 (provided Employee remains eligible for COBRA
continuation coverage).&nbsp; Thereafter, if applicable, continuation coverage
pursuant to COBRA will be available to Employee at Employee&#146;s sole expense, and
Employee will be responsible for the full COBRA premium for any remaining
months of the COBRA coverage period made available pursuant to applicable law.</h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;'>C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provide Employee with an outplacement services package to assist with
Employee&#146;s transition into a new position.</h2>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'><b>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Return of Company Property</b>.&nbsp;
Employee understands that, except as otherwise
provided by this <u>Paragraph 4</u>, as of the Separation Date he was required
to return to the Company, and Employee represents that he has returned to the
Company, all tangible property and information belonging to the Company that is
within his possession or subject to his control, including but not limited to
any equipment, supplies, credit cards, and office machines, and also including
any electronic or tangible documents or files relating to the Company, except
for (i) such personnel and compensation records provided to Employee during the course of his employment, and
(ii) the following tangible items which were assigned for Employee&#146;s use prior
to the Separation Date, and which the Company has agreed Employee may retain thereafter:
cell phone and cell phone number, laptop computer and docking station (but
excluding Company data files and documents, which Company shall be entitled to
remove from the computer and any related storage devices).</h1>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'><b>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Health Insurance Benefits</b>. Employee is entitled to continue his health
insurance benefits at his own expense (except as otherwise provided in <u>Paragraph
3</u>) and for such period as may be permitted by law.</h1>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in;page-break-after:avoid'><b>6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Complete Release of Claims by Employee</b>.&nbsp;
</h1>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in;page-break-after:avoid'>&nbsp;</p>
<table border="0" cellpadding="0" style="border-collapse: collapse" width="100%" id="table2">
	<tr>
		<td width="33%">&nbsp;&nbsp; </td>
		<td width="34%">&nbsp;</td>
		<td width="33%">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";text-align:right'><font style="font-size: 11.0pt">Initials: ____</font></p>
  		</td>
	</tr>
	<tr>
		<td width="33%">&nbsp;</td>
		<td width="34%">
		<p align="center">-2-</td>
		<td width="33%">
		<p align="right"><font style="font-size: 11.0pt">____</font></td>
	</tr>
</table>

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

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

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

</div>

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

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


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

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

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

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

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;'>A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In consideration for this Agreement, and to the maximum extent permitted
by law, Employee, for himself, and his heirs, assigns, executors,
administrators, agents and successors (collectively, &#147;Employee&#146;s Affiliates&#148;)
hereby fully releases, covenants not to sue and forever discharges the Company
and each of its predecessors, successors, assigns, employees, officers,
directors, shareholders, agents, attorneys, subsidiaries, parent companies,
divisions or affiliated corporations or organizations, expressly including, but
not limited to, PRO-DEX, Inc., whether previously or hereafter affiliated in
any manner (collectively, &#147;Released Parties&#148;), from any and all claims,
demands, actions, causes of action, charges of discrimination, obligations,
damages, attorneys&#146; fees, costs, expenses, and liabilities of any nature
whatsoever, whether or not now known, suspected or claimed (the &#147;Claims&#148;), that
Employee or Employee&#146;s Affiliates ever had, now have, or may claim to have as
of the date of this Agreement against the Released Parties (whether directly or
indirectly), or any of them, by reason of any act or omission concerning any
matter, cause or thing occurring on or before the Effective Date of this
Agreement.&nbsp; This release includes, without limiting the generality of the
foregoing, the waiver of any claims related to or arising out of Employee&#146;s
employment with the Company or the separation of that employment. In giving
this release, Employee waives and releases any and all rights to employment or
re-employment with the Company.</h2>

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;'>B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Without limiting the generality of the foregoing, Employee understands
and agrees that the release provisions of this <u>Paragraph 6</u> apply to any
Claims that Employee or the Employee&#146;s Affiliates now have, or may ever have
had, against the Company or any of the other Released Parties occurring on or
before the Effective Date of this Agreement that arise out of or are in any
manner related to Employee&#146;s employment with the Company or with any of the
other Released Parties, as well as the separation of that employment, including
without limitation any Claims arising out of or related to violation of any
federal or state employment discrimination laws, including the California Fair
Employment and Housing Act; the California Family Rights Act; the Family and
Medical Leave Act; Title VII of the Civil Rights Act of 1964; the federal Age
Discrimination in Employment Act, as amended; the Americans With Disabilities
Act; the National Labor Relations Act; the Equal Pay Act; the Employee
Retirement Income Security Act of 1974; as well as all Claims arising out of or
related to violations of the provisions of the California Labor Code; the
California Government Code; the California Business &amp; Professions Code,
including Business &amp; Professions Code Section 17200, et seq.; state and
federal wage and hour laws, including the federal Fair Labor Standards Act;
breach of contract; fraud; misrepresentation; common counts; unfair
competition; unfair business practices; negligence; defamation; infliction of
emotional distress; invasion of privacy; assault; battery; false imprisonment;
wrongful termination; and any other state or federal law, rule, or regulation.</h2>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;'>&nbsp;</p>
<table border="0" cellpadding="0" style="border-collapse: collapse" width="100%" id="table4">
	<tr>
		<td width="33%">&nbsp;&nbsp; </td>
		<td width="34%">&nbsp;</td>
		<td width="33%">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";text-align:right'><font style="font-size: 11.0pt">Initials: ____</font></p>
  		</td>
	</tr>
	<tr>
		<td width="33%">&nbsp;</td>
		<td width="34%">
		<p align="center">-3-</td>
		<td width="33%">
		<p align="right"><font style="font-size: 11.0pt">____</font></td>
	</tr>
</table>

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

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

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

</div>

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

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


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

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

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

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

<h2 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;'>C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employee acknowledges and represents that he did not suffer any
work-related injuries while working for the Company.&nbsp; Employee acknowledges and
represents that he has no intention of filing any claim for workers&#146;
compensation benefits of any type against the Company, and that he will not
file or attempt to file any claims for workers&#146; compensation benefits of any
type against the Company.&nbsp; Employee acknowledges that the Company has relied
upon these representations, and that the Company would not have entered into
this Agreement but for these representations.&nbsp; As a result, Employee agrees,
covenants, and represents that the Company may, but is not obligated to, submit
this Agreement to the Workers&#146; Compensation Appeals Board for approval as a
compromise and release as to any workers&#146; compensation claim that Employee
files at any time against the Company.</h2>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'><b>7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Older Workers Benefit Protection
Act</b>.&nbsp; This Agreement is subject to the
terms of the Older Workers Benefit Protection Act of 1990 (the &#147;OWBPA&#148;).&nbsp; The
OWBPA provides that an individual cannot waive a right or claim under the Age
Discrimination in Employment Act (&#147;ADEA&#148;) unless the waiver is knowing and
voluntary. &nbsp;Pursuant to the terms of the OWBPA, Employee acknowledges and
agrees that he has executed this Agreement voluntarily, and with full knowledge
of its consequences.&nbsp; In addition, Employee hereby acknowledges and agrees
that: (a) this Agreement has been written in a manner that is calculated to be
understood, and is understood, by Employee; (b) the release provisions of this
Agreement apply to rights and claims that Employee may have under the ADEA,
including the right to file a lawsuit against the Released Parties for age
discrimination; (c) the release provisions of this Agreement do not apply to
any rights or claims that Employee may have under the ADEA that arise after the
date Employee executes this Agreement; and (d) the Company does not have a
preexisting duty to pay the special additional compensation identified in this
Agreement (except to the extent otherwise provided in the December 5, 2007
letter agreement).&nbsp; </h1>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'><b>8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General Nature of Release;
Claims Not Released.&nbsp;
</b>The Release set
forth above in <u>Paragraph 6</u> of this Agreement is a general release of all
claims, demands, causes of action, obligations, damages, and liabilities of any
nature whatsoever that are described in the Release and is intended to
encompass all known and unknown, foreseen and unforeseen claims that Employee
may have against the Released Parties, or any of them, except for any claims
that may arise from the terms of this Agreement, or any claims which may not be
released as a matter of law.&nbsp; It is further understood by the Parties that nothing
in this Agreement shall affect any rights Employee may have under any Pension
Plan and/or Savings Plan (i.e., 401(k) plan) provided by the Company as of the
Separation Date, such items to be governed exclusively by the terms of the
applicable plan documents.&nbsp; Employee covenants and agrees never to commence,
aid in any way, prosecute or cause to be commenced or prosecuted any action or
other proceeding based upon any claims, demands, causes of action, obligations,
damages or liabilities which are the subject of this Agreement; provided
however, that Employee does not relinquish any protected rights to file a
charge, testify, assist or participate in any manner in an investigation,
hearing or proceeding conducted by the Equal Employment Opportunity Commission,
the Office of Federal Contract Compliance or any similar state human rights
agency.&nbsp; However, Employee may not recover additional compensation or damages
as a result of any such action.</h1>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'><b>9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Release of Section 1542 Rights</b>.&nbsp;
Employee expressly waives and relinquishes all
rights and benefits he may have under Section&nbsp;1542 of the California Civil
Code.&nbsp; Section&nbsp;1542 is intended to protect against an inadvertent release
of unknown or unsuspected claims that would be material to this Agreement.&nbsp; This
<u>Paragraph 9</u> provides that Employee also
is releasing any such unknown or unsuspected claims.&nbsp; Section 1542 reads as
follows:</h1>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";margin-right:78.0pt;text-indent:.5in'>&#147;Section 1542.&nbsp; [General Release; extent.]&nbsp; A general
release does not extend to claims which the creditor does not know or suspect
to exist in his or her favor at the time of executing the release, which if
known by him or her must have materially affected his or her settlement with
the debtor.&#148;</p>
<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";margin-right:78.0pt;text-indent:.5in'>&nbsp;</p>
<table border="0" cellpadding="0" style="border-collapse: collapse" width="100%" id="table5">
	<tr>
		<td width="33%">&nbsp;&nbsp; </td>
		<td width="34%">&nbsp;</td>
		<td width="33%">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";text-align:right'><font style="font-size: 11.0pt">Initials: ____</font></p>
  		</td>
	</tr>
	<tr>
		<td width="33%">&nbsp;</td>
		<td width="34%">
		<p align="center">-4-</td>
		<td width="33%">
		<p align="right"><font style="font-size: 11.0pt">____</font></td>
	</tr>
</table>

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

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

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

</div>

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

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


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

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

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

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

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'><b>10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-Admission of Liability</b>.&nbsp;
Employee and the Company acknowledge and agree
that this Agreement is a settlement agreement and shall not in any way be
construed as an admission by any of the Released Parties of any wrongful act
against, or any liability to, Employee or any
other person.</h1>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'><b>11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Protection of Trade Secrets</b>.&nbsp;
Employee agrees to keep in strict confidence
at all times, and that he will not at any time, either directly or indirectly,
make known, reveal, make available or use, any Trade Secrets as defined herein,
which Employee obtained during or by virtue of his employment with the
Company.&nbsp; The parties agree that &#147;Trade Secrets&#148; as used herein means all
confidential information which (i) has been the subject of reasonable efforts
by the Company to maintain as secret and confidential, (ii) pertains in any
manner to the business of the Company, including proprietary information
entrusted to the Company in confidence by its customers or suppliers (except to
the extent such information is generally known or made available to the public
or to the Company&#146;s competitors through lawful means), and (iii) has independent
economic value by virtue of not being generally known to other persons who
could obtain economic value from its disclosure or use.&nbsp; Employee acknowledges that all Trade Secrets, as
well as all other confidential information or data of the Company, are and
remain the exclusive property of the Company (or, in the case of proprietary
information belonging to a customer or supplier who has entrusted it to the
Company, the exclusive property of that person or entity).&nbsp; Employee and the
Company further agree that the following information constitutes a
non-exclusive listing of Trade Secrets coming within the terms of this
Agreement:&nbsp; the customer contacts and business requirements of the Company&#146;s
current customers with respect to the Company&#146;s products; the supplier contacts
and business requirements of the Company&#146;s suppliers with respect to the
Company&#146;s products; the specific nature and amount of business conducted by the
Company with its customers and suppliers; the product specifications required by
the Company&#146;s customers or required by the Company of its suppliers; customer
and supplier pricing information and discount schedules with respect to the
Company&#146;s products or supplies; and the Company&#146;s business plans and strategies
for acquiring new products, customers, or manufacturing sources or otherwise
expanding or improving its product offerings to customers.&nbsp; Employee further
agrees that he shall not directly or indirectly solicit business from or with
respect to any customers or suppliers of the Company through the use of any
Trade Secrets.&nbsp; To the maximum extent permitted by law, Employee further
covenants and agrees to observe and comply with all other agreements previously
made with the Company with respect to the protection of the Company&#146;s intellectual
property and confidential information, and that all such agreements shall
survive the parties&#146; entry into this Agreement to their maximum lawful extent
except as specifically superseded by this Agreement.&nbsp; </h1>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'><b>12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Twenty-One Day Consideration
Period</b>.&nbsp; This Agreement is being given to Employee
on October 7, 2010.&nbsp; Employee acknowledges
that he is entitled to take up to twenty-one (21) calendar days to consider
whether to accept this Agreement, and that if he signs this Agreement before
expiration of the 21-day period, he has done so voluntarily.&nbsp; Employee agrees
that any modifications, material or otherwise, made to this Agreement do not
restart or affect in any manner the original twenty-one (21) calendar day
consideration period.&nbsp; </h1>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<table border="0" cellpadding="0" style="border-collapse: collapse" width="100%" id="table6">
	<tr>
		<td width="33%">&nbsp;&nbsp; </td>
		<td width="34%">&nbsp;</td>
		<td width="33%">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";text-align:right'><font style="font-size: 11.0pt">Initials: ____</font></p>
  		</td>
	</tr>
	<tr>
		<td width="33%">&nbsp;</td>
		<td width="34%">
		<p align="center">-5-</td>
		<td width="33%">
		<p align="right"><font style="font-size: 11.0pt">____</font></td>
	</tr>
</table>
<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

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

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

</div>

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

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


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

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

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

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

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'><b>13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seven Day Revocation Period</b>.&nbsp;
After signing this Agreement, Employee shall
have a period of seven (7) calendar days to revoke the Agreement by providing
the Company with written notice of his revocation.&nbsp; To be effective, such
revocation must be in writing, must specifically revoke this Agreement, and
must be received by the Company prior to the eighth calendar day following Employee&#146;s execution of this Agreement. This
Agreement shall become effective, enforceable, and irrevocable on the eighth
calendar day following Employee&#146;s execution of
this Agreement.&nbsp; Any revocation of this Agreement, however, shall not affect
the finality of the separation of Employee&#146;s
employment with the Company on the Separation Date.</h1>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'><b>14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acknowledgment of Being Advised
to Consult Legal Counsel</b>.&nbsp; This Agreement is an important legal
document.&nbsp; Employee acknowledges that the
Company has advised him in writing to consult with an attorney of his choice
prior to signing this Agreement, and that he has had the opportunity to consult
with an attorney to the extent he so desires.</h1>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'><b>15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Confidentiality</b>.&nbsp; As
a material inducement to the Company to enter into this Agreement, Employee promises and agrees to maintain
confidentiality regarding this Agreement to the extent permitted by applicable
law, except to the extent the Company publicly discloses its terms in
accordance with public company disclosure requirements.&nbsp; Therefore, except to
the extent of any public disclosure by the Company, Employee
promises and covenants not to disclose, publicize, or cause to be
publicized any of the terms and conditions of this Agreement except to his
immediate family, and to his attorney or accountant to the extent reasonably
necessary to obtain professional advice with respect to the parties&#146; rights and
obligations as stated herein, or otherwise as permitted by law.&nbsp; Employee further promises and covenants to use his
best efforts to prevent any further disclosure of this Agreement by any such
persons to whom he does make disclosure.</h1>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'><b>16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ambiguities</b>.&nbsp; Employee and the Company agree that the general rule
that ambiguities shall be construed against the drafting party shall not apply
to any interpretation of this Agreement.</h1>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'><b>17.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interpretation</b>.&nbsp;
Whenever possible, each provision of this Agreement shall be interpreted in
such a manner as to be valid and effective under applicable law.&nbsp; If any
provision of this Agreement shall be unlawful, void or for any reason
unenforceable, it shall be deemed separable from, and shall in no way affect
the validity or enforceability of, the remaining provisions of this Agreement,
and the rights and obligations of the parties shall be enforced to the fullest
extent possible.&nbsp; All captions are for convenience of reference only and shall
be disregarded in interpreting this Agreement.</h1>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'><b>18.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Entire Agreement</b>.&nbsp; Employee acknowledges that he is not relying, and
has not relied, on any representation or statement by the Company with regard
to the subject matter or terms of this Agreement, except to the extent set
forth fully in this Agreement.&nbsp; This Agreement constitutes the entire agreement
between Employee and the Company with respect
to the subject matter of this Agreement, and supersedes any and all other
agreements, understandings or discussions between Employee
and the Company with respect to the subject matter of this Agreement
(specifically including the December 5, 2007 letter agreement between Employee
and the Company), other than (a) the Confidentiality, Unfair Competition,
Non-Recruiting, and Assignment of Inventions Agreement signed by Employee on
August 4, 2010, and (b) the Indemnification Agreement between the parties,
dated October 24, 2008, each of which agreements shall survive the execution of
this Agreement and the separation of Employee&#146;s employment. </h1>

<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<table border="0" cellpadding="0" style="border-collapse: collapse" width="100%" id="table7">
	<tr>
		<td width="33%">&nbsp;&nbsp; </td>
		<td width="34%">&nbsp;</td>
		<td width="33%">
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";text-align:right'><font style="font-size: 11.0pt">Initials: ____</font></p>
  		</td>
	</tr>
	<tr>
		<td width="33%">&nbsp;</td>
		<td width="34%">
		<p align="center">-6-</td>
		<td width="33%">
		<p align="right"><font style="font-size: 11.0pt">____</font></td>
	</tr>
</table>
<p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

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

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

</div>

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

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


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

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

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

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

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'><b>19.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk of New or Different Facts</b>.&nbsp;
Employee acknowledges that he may discover new
information different from or inconsistent with facts he presently believes to
be true, and expressly agrees to assume the risk of such new or different
information.</h1>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'><b>20.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acknowledgment by Company of No Known Claims Against Employee</b>.&nbsp;
The Company represents and acknowledges that it knows of no claims it has
against Employee, and hereby confirms that the Company has no present intention
of pursuing any claim or claims against Employee.&nbsp; </h1>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'><b>21.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Modification</b>.&nbsp; This
Agreement cannot be modified or terminated, except by a writing signed by the
party against whom enforcement of the modification or termination is sought.</h1>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'><b>22.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Voluntary Agreement</b>.&nbsp;
This Agreement in all respects has been voluntarily and knowingly executed by
the parties hereto.&nbsp; Employee specifically
represents that he has carefully read and fully understands all of the
provisions of this Agreement, and that he is voluntarily entering into this
Agreement.</h1>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'><b>23.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Execution in Counterparts</b>.&nbsp;
This Agreement may be executed in any number of counterparts, each of which
shall be deemed an original, but all of which shall constitute one and the same
instrument.</h1>

<h1 style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";font-weight:normal;margin-left:0in'><b>24.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Governing Law</b>.&nbsp; The
validity and effect of this Agreement shall be governed by and construed and
enforced in accordance with the laws of the State of California, without giving
effect to conflicts of laws principles.</h1>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";'>IN WITNESS WHEREOF, the parties hereto
have executed this Separation Agreement and General Release of All Claims, and
have initialed each page hereof, on the dates set forth below.</p>

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

<table class=MsoNormalTable border=0 cellpadding=0
 style='border-collapse:collapse' width="100%">
 <tr style='height:10.35pt'>
  <td width=287 valign=top style='width:215.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:10.35pt'>
  <p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";text-indent:0in'>Dated:
	October 7, 2010</p>
  </td>
  <td width=351 valign=top style='width:263.4pt;padding:0in 5.4pt 0in 5.4pt;
  height:10.35pt'>
  <p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";'>
	<u>/s/ Jeffrey
  J. Ritchey&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	</u></p>
  <p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";margin-top:0in;text-indent:0in'>Jeffrey
  J. Ritchey</p>
  <p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";margin-top:0in;text-indent:0in'>
	Employee</p>
  </td>
 </tr>
 <tr>
  <td width=287 valign=top style='width:215.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";text-indent:0in'>&nbsp;</p>
  <p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:12.0pt;font-family:"Times New Roman";text-indent:0in'>Dated:
  October 7, 2010</p>
  </td>
  <td width=351 valign=top style='width:263.4pt;padding:0in 5.4pt 0in 5.4pt'>
  <p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";text-align:left'>PRO-DEX, INC. </p>
  <p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";'>
	<u>/s/ Mark P. Murphy&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	<br>
	</u>By: Mark P. Murphy&nbsp; <br>
	<br>
	Its: <u>Chief
  Executive Officer</u></p>
  </td>
 </tr>
 <tr>
  <td style='border:none;padding:0in 0in 0in 0in' width=5><p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</td>
 </tr>
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 </tr>
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<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>es10-2.htm
<TEXT>
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<head>
<!-- Document Prepared With IDEAxfiler Software-->
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<title>EXHIBIT 10.2</title>



</head>

<body lang=EN-US>

<div style='page:Section1;'>

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

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

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

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

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

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

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:12.0pt;page-break-after:avoid'><b>EXHIBIT
10.2</b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:12.0pt;text-align:center;
page-break-after:avoid'><b>Offer Letter to Mr. Hurwitz</b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'><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";'><font style="font-size: 11.0pt">August 23, 2010</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'><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";'><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";page-break-after:avoid'><b><font style="font-size: 11.0pt">Mr. Harold (Hal) Hurwitz</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'><font style="font-size: 11.0pt">21 Lexington<br>
  Irvine, CA&nbsp; 92620</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'><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";'><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";'><b><font style="font-size: 11.0pt">Dear Hal:</font></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'><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";text-align:justify'><font style="font-size: 11.0pt">On
behalf of Pro-Dex, Inc., I am</font><font style="font-size: 11.0pt"> pleased to
extend our offer of employment to you for the position of Vice President and
Chief Financial Officer under the terms and conditions described in this
letter.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'><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";'><b><u><font style="font-size: 11.0pt">Date of Hire</font></u></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'><font style="font-size: 11.0pt">Your
employment with Pro-Dex, Inc. will begin on a date to be mutually determined,
but no later than September 30, 2010.&nbsp; Should your start date occur later than
September 15, 2010, we will enter a consulting arrangement with you at the same
base salary from September 15<sup>th </sup>through your start date, but no
later than September 30th.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'><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";'><b><u><font style="font-size: 11.0pt">Base Compensation</font></u></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'><font style="font-size: 11.0pt">Your
rate of pay will be $7,115.38, payable bi-weekly on every other Thursday, for
an annual compensation of $185,000.&nbsp; This is a full-time, exempt position.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'><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";'><b><u><font style="font-size: 11.0pt">Bonus Compensation</font></u></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'><font style="font-size: 11.0pt">You,
will be eligible to participate in the Annual Incentive Plan which is the
company&#146;s executive performance bonus program..&nbsp; Your initial target bonus
award under this plan will be 25% of your base salary.&nbsp; Your actual incentive
under this plan is dependent upon achievement of the Company operating income
targets and your individual goals and the terms of the plan. Upon its
implementation, you will also be eligible to participate in the Company&#146;s Long
Term Incentive Plan with a target award that has not yet been determined.&nbsp; You
will not be eligible to participate in the company wide bonus plan.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'><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";'><b><u><font style="font-size: 11.0pt">Equity Grants</font></u></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";' align="justify"><font style="font-size: 11.0pt">You will be eligible to
participate in any program of stock option or other equity grants which the
Company may f<a name=Verdatum></a>rom time to time provide key employees.&nbsp; Such
grants are made under the terms and provisions of the First Amended and
Restated 2004 Stock Option Plan in varying amounts to individual participants
based upon their perceived impact upon the long term success of the Company and
are made at the sole and absolute discretion of the Board, generally at the
first Board meeting following the filing of the Company&#146;s Form 10-K for the
previous fiscal year.&nbsp;&nbsp; Subject to the foregoing, your initial grant under this
program will be 20,000 options to purchase the Company&#146;s common shares at the
average of the high and low prices for the Company&#146;s shares on the grant date
and which will vest ratably over the 36 month period following the grant
date.&nbsp;&nbsp; The options will have a term of ten years from the grant date and to
the maximum extent permissible under the relevant Internal Revenue Service
regulations, will be made as Incentive Stock Options.&nbsp; </font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'><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";'><b><u><font style="font-size: 11.0pt">Associate Benefits</font></u></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";' align="justify"><font style="font-size: 11.0pt">You
will be eligible for health benefits the first of the month following one (1)
month of full-time active employment.&nbsp; Assuming a September 18<sup>th</sup>
start date, you will become eligible to participate in health benefit programs
starting November 1, 2010.&nbsp; These benefits include health, dental, vision, and
life insurance.&nbsp; Optional benefits include supplemental insurance products,
flexible medical and dependent care savings plans, and health savings accounts.</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

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

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

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

</div>

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

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


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

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

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'><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";text-align:justify'><font style="font-size: 11.0pt">In
addition, associates may enroll in the Company&#146;s 401(k) program quarterly,
beginning January 1, April 1, July 1 and October 1.&nbsp; Following the completion
of six months of employment, Pro-Dex matches associate 401(k) contributions at
a rate of $0.25 per dollar up to a total employee contribution of 5% of an
associate&#146;s base salary.&nbsp; Further details of such benefits will be explained in
your Orientation Meeting on your first day of employment.&nbsp; </font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'><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";text-align:justify'><font style="font-size: 11.0pt">You
should note that, if you were previously covered for medical insurance and you
obtain a certificate of insurance from your previous employer, HIPAA
regulations prohibit restrictions of pre-existing conditions when you enroll
with a new employer provided that you attach a copy of the certificate to your
enrollment form.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'><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";text-align:justify'><font style="font-size: 11.0pt">You
will receive Paid Time Off (PTO) in accordance with the plan applicable to
other senior executives in the company.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'><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";'><b><u><font style="font-size: 11.0pt">Reporting Relationship</font></u></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'><font style="font-size: 11.0pt">This
position is based in Irvine, California and reports to the Chief Executive
Officer. </font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'><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";page-break-after:avoid'><b><u><font style="font-size: 11.0pt">Employment Relationship</font></u></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;page-break-after:avoid'><font style="font-size: 11.0pt">Your employment will be &#147;at-will.&#148;&nbsp; This means that
you or Pro-Dex, Inc. may decide to change the status of your employment or
terminate the employment relationship at any time, for any reason or no reason,
with or without cause or prior notice.&nbsp; Your &#147;at-will&#148; employment relationship
may not be changed except in writing signed by the CEO of Pro-Dex, Inc. with
the approval of the Board of Directors.</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;page-break-after:avoid'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'><b><u><font style="font-size: 11.0pt">Employment Contingency</font></u></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;page-break-after:avoid'><font style="font-size: 11.0pt">This offer of employment and/or your employment by Pro-Dex,
Inc. is contingent upon the fulfillment of items listed in Exhibit A.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'><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";page-break-after:avoid'><b><u><font style="font-size: 11.0pt">Agreements with Prior Employers</font></u></b></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'><font style="font-size: 11.0pt">By
your signature below, you represent to us that, as of such signature date, you
are not bound by any proprietary or confidentiality agreements or covenants
with any prior employers, customers, clients, etc. that would have a bearing on
or create a conflict of interest with the position you are being offered with
our Company.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify'><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";text-align:justify'><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";text-align:center'><font style="font-size: 11.0pt">* * * * * * * * * * * * * * *</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'><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";text-align:justify'><font style="font-size: 11.0pt">Hal,
I want you to know how excited I am to have you join the Pro-Dex team.&nbsp; I am
confident that we will enjoy a mutually rewarding relationship.&nbsp; If you have
any questions, please let me know.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'><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";text-align:justify'><font style="font-size: 11.0pt">If
the terms of this letter are agreeable to you, please sign in the space
provided below indicating your understanding of and agreement to the provisions
of this offer of employment and return it to me as soon as possible.</font></p>

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

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'><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";' align="center">
- -2-</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";' align="center">&nbsp;</p>

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

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

</div>

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

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


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

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

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'><font style="font-size: 11.0pt">Sincerely,</font></p>

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

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'><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";'><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";'><font style="font-size: 11.0pt">Mark P. Murphy</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'><font style="font-size: 11.0pt">Chief Executive Officer</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'><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";'><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";text-align:justify'><font style="font-size: 11.0pt">I
have read the above terms of this offer of employment and I accept and agree to
them.</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'><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";'><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";'><font style="font-size: 11.0pt">
<u>/s/ Harold (Hal) Hurwitz</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; ________________</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'><font style="font-size: 11.0pt">Harold (Hal) Hurwitz&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Date</font></p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'><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";'><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";'><font style="font-size: 11.0pt">Enclosures</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
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<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>es10-3.htm
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<head>
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<title>EXHIBIT 10.3</title>



</head>

<body lang=EN-US>

<div style='page:Section1;'>

<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-top:9.0pt;text-autospace:none; margin-left:0in; margin-right:0.05in'>
<b>&nbsp;</b></p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-top:9.0pt;text-autospace:none; margin-left:0in; margin-right:0.05in'>
<b>&nbsp;</b></p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-top:9.0pt;text-autospace:none; margin-left:0in; margin-right:0.05in'>
<b>EXHIBIT 10.3</b></p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-top:9.0pt;text-align:center;
text-autospace:none; margin-left:0in; margin-right:0.05in'><b>PRO-DEX INC.<br>AMENDED AND RESTATED<br>LONG-TERM INCENTIVE PLAN</b></p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-top:.15in;text-autospace:none; margin-left:0in; margin-right:0.05in'>INTRODUCTION</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:1.8pt;margin-right:0.05in;margin-bottom:
0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.25in;
text-autospace:none'>The
Pro-Dex, Inc. Long-Term Incentive Plan (the &quot;Plan&quot;) is a long-term
incentive plan for eligible employees of the Company. The Plan<font size="3"> is intended to
provide equity-based incentive opportunities to executives and other key
employees of the Company. Plan payments, if any, will be conditioned on
attainment of certain Performance Goals for one or more fiscal years as
approved by the Committee and ratified by its Board of Directors.</font></p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-top:.35in;text-autospace:none; margin-left:0in; margin-right:0.05in'>I.&nbsp; PURPOSE</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:1.8pt;margin-right:.05in;margin-bottom:
0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.25in;
text-autospace:none'>The
purpose of the Plan is to allow the Company to attract, motivate and retain
highly qualified employees; to obtain from each employee the best possible<font size="3"> performance; to
establish Performance Measures that support the Company's long-term business
strategies; and to provide consistency in and alignment with the
Company's approach to performance-based pay and overall executive compensation
strategy.</font></p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-top:1.8pt;margin-right:.05in;margin-bottom:
0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.25in;
text-autospace:none'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-top:1.8pt;margin-right:.05in;margin-bottom:
0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.25in;
text-autospace:none'>The Plan is established
under, and constitutes part of, the First Amended and Restated 2004 Stock
Option Plan (the &#147;2004 Plan&#148;) adopted by the Company and approved by the
shareholders.&nbsp; In the event of any conflict between the Plan and the 2004 Plan,
the provisions of the 2004 Plan shall govern.</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-top:.35in;text-autospace:none; margin-left:0in; margin-right:0.05in'>II. DEFINITIONS</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:1.8pt;margin-right:0.05in;margin-bottom:0in;
margin-left:.25in;margin-bottom:.0001pt;text-align:justify;text-autospace:none'>For
purposes of the Plan, the following terms shall have the following meanings:<br>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:0in;margin-right:0.05in;margin-bottom:0in;
margin-left:.25in;margin-bottom:.0001pt;text-align:justify;text-autospace:none'>
<b><font size="3">AWARD PARAMETERS DESCRIPTION</font></b><font size="3">. A document or compilation of documents approved by
the Committee and ratified by the Board of Directors,
in writing, to set forth the parameters necessary for determining a Long-Term
Incentive Compensation Award, including the (i) Award Period, (ii) the Performance Measures, (iii) the Performance Goals
and (iv) the amount of Long-Term Incentive Compensation Award payable with
respect to the achievement of each Performance Goal. The award
parameters described in the Award Parameters Description need not be identical
for all the Participants.<br>
&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:.05in;margin-right:0.05in;margin-bottom:
0in;margin-left:.25in;margin-bottom:.0001pt;text-align:justify;text-autospace:
none'><b>AWARD<font size="3"> PERIOD. </font></b>Unless otherwise provided by the
Committee and ratified by the Board of Directors, the Award Period to which a
Long-Term<font size="3"> Incentive Compensation Award
relates shall encompass three (3) consecutive fiscal years.</font></p>
<p style="margin-left: 0.25in; margin-right: 0.05in" align="justify"><b><font size="3">BOARD OF DIRECTORS</font></b><font size="3">.
The Board of Directors of Pro-Dex, Inc.; provided that, with respect to any
Long-Term Incentive Compensation Awards of the Chief Executive Officer of
Pro-Dex, Inc. , &quot;Board of Directors&quot; shall mean only the members of
the Board of Directors who qualify as &quot;outside directors&quot; under
Section 162(m) of the Code and who meet the independence requirements of
applicable law and the NASDAQ Listing Rule 5605(a)(2) (or any such comparable
provision of any other primary exchange on which the company's
shares are listed).</font></p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-left:.25in;text-align:justify;text-autospace:
none; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>
	<hr size=2 width="100%" noshade color=navy align=center></div>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<font face="Times New Roman"><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";margin-top:.05in;margin-right:.05in;margin-bottom:
0in;margin-left:.25in;margin-bottom:.0001pt;text-align:justify;text-autospace:
none'><b>CAUSE</b>. Cause has the meaning given to
such term in any employment agreement with the Company to which the Participant
is a party and in the absence<font size="3"> of such agreements (and not intended to modify or
add to any such existing agreement terms), it shall mean: (i) conviction for
the commission of a felony or a crime involving moral turpitude or the
commission of any other act or omission involving dishonesty, disloyalty
or fraud; (ii) conduct that brings or is reasonably likely to bring the Company
into public disgrace or disrepute, (iii) repeated failure to perform duties as
reasonably directed by the Company; (iv) gross negligence or willful misconduct
with respect to the Company; and/or (v)
habitual insobriety, or use of illicit drugs or other controlled substances
following one medically supervised course of treatment for such drug or
alcohol use or upon refusal to participate in such course of treatment.</font></p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-top:1.8pt;margin-right:0.05in;
margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;text-align:right;
text-autospace:none'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:1.8pt;margin-right:0.05in;margin-bottom:0in;
margin-left:.25in;margin-bottom:.0001pt;text-align:justify;text-autospace:none'>
<b><font size="3">CHANGE IN CONTROL</font></b><font size="3">. &quot;Change in the ownership or effective control of the
corporation&quot; or &quot;change in the ownership of a substantial portion of
the assets of the corporation&quot;, as such terms are defined in Section
1.409A-3(i)(5) of the final regulations and other applicable guidance
promulgated under Section 409A of the Code.</font></p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:0in;margin-right:0.05in;margin-bottom:0in;
margin-left:.25in;margin-bottom:.0001pt;text-align:justify;text-autospace:none'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.25in;text-align:justify;text-autospace:
none; margin-right:0.05in; margin-top:0in'><b>CODE</b>. The Internal Revenue Code of
1986, as amended, and any regulations thereunder, and any successors thereto.</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.25in;text-align:justify;text-autospace:none; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.25in;text-align:justify;text-autospace:none; margin-right:0.05in; margin-top:0in'>
<b>COMMITTEE</b>. The Compensation Committee of the
Board of Directors.</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-left:.25in;text-align:justify;text-autospace:
none; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.25in;text-align:justify;text-autospace:
none; margin-right:0.05in; margin-top:0in'><b><font size="3">COMPANY</font></b><font size="3">. Pro-Dex Inc., its subsidiaries and any other entity
which is a &quot;service recipient&quot; (as such term is defined in Section
1.409A1(g) of the final regulations and other applicable guidance promulgated
under Section 409A of the Code) with respect to persons performing services for
the Company.</font></p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-left:.25in;text-align:justify;text-autospace:
none; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.25in;text-align:justify;text-autospace:
none; margin-right:0.05in; margin-top:0in'><b><font size="3">DISABILITY</font></b><font size="3">. &quot;Disability&quot;, as such term is defined in
Section 1.409A-3(i)(4) of the final regulations and other applicable guidance
promulgated under Section 409A of the Code.</font></p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-left:.25in;text-align:justify;text-autospace:
none; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:1.8pt;margin-right:0.05in;margin-bottom:
0in;margin-left:.25in;margin-bottom:.0001pt;text-align:justify;text-autospace:
none'><b><font size="3">LONG-TERM INCENTIVE COMPENSATION AWARD</font></b><font size="3">. Any award paid pursuant to the Plan. A Long-Term
Incentive Compensation Award shall be determined by the Committee and ratified
by the Board of Directors, in its sole and absolute discretion. Unless
otherwise specified by the Committee and
ratified by the Board of Directors, with respect to any Performance Measure:
(i) the Long-Term Incentive Compensation Award payable with respect to the maximum Performance Goal shall not exceed
one hundred and fifty percent (150%) of the Long-Term Incentive Compensation
Award payable with respect to the target Performance Goal; and (ii) the
Long-Term Incentive Compensation Award payable with respect to a minimum
Performance Goal shall not be less than fifty percent (50%) of the Long-Term
Incentive Compensation Award payable with respect to the target Performance Goal. The Long-Term Incentive
Compensation Award payable to any individual Participant with respect to any
particular Award Period shall not exceed $1,000,000. (one million
dollars).</font></p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-top:1.8pt;margin-right:0.05in;margin-bottom:
0in;margin-left:.25in;margin-bottom:.0001pt;text-align:justify;text-autospace:
none'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:1.8pt;margin-right:0.05in;margin-bottom:
0in;margin-left:.25in;margin-bottom:.0001pt;text-align:justify;text-autospace:
none'><b>PARTICIPANT</b>. An executive or other key
employee of the Company, or a person who has agreed to commence serving in any
of such capacities, and<font size="3"> who is designated
by the Committee to participate in the Plan. No person shall be a Participant
in the Plan prior to the execution by such person of the Participation
Agreement.</font></p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-top:1.8pt;margin-right:0.05in;margin-bottom:
0in;margin-left:.25in;margin-bottom:.0001pt;text-align:justify;text-autospace:
none'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in' align="center">-2-</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in' align="center">&nbsp;</p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>
	<hr size=2 width="100%" noshade color=navy align=center></div>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<font face="Times New Roman"><br clear=all
style='page-break-before:always'></font>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:0in;margin-right:0.05in;margin-bottom:0in;
margin-left:.25in;margin-bottom:.0001pt;text-align:justify;text-autospace:none'>
<b><font size="3">PARTICIPATION AGREEMENT</font></b><font size="3">. An agreement executed by the Participant in
substantially the form attached hereto as <b><u>Exhibit A</u></b>. Executed Participation Agreements are incorporated into the
Plan by reference and made a part thereof to the same extent and with the same
force and effect as if fully set forth therein.</font></p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-top:0in;margin-right:0.05in;margin-bottom:0in;
margin-left:.25in;margin-bottom:.0001pt;text-align:justify;text-autospace:none'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:0in;margin-right:0.05in;margin-bottom:0in;
margin-left:.25in;margin-bottom:.0001pt;text-align:justify;text-autospace:none'>
<b><font size="3">PERFORMANCE GOAL</font></b><font size="3">. Performance Goal means, with respect to a Performance Measure, a
measure of achievement of such Performance Measure, approved by the Committee
and ratified by the Board of Directors and set forth in the Award Parameters
Description. Unless otherwise provided by the Committee and ratified by the
Board of Directors, there shall be three (3) Performance Goals with
respect to each Performance Measure &#150; (i) minimum Performance Goal, (ii) target
Performance Goal and (iii) maximum Performance Goal. Performance Goals shall be
deemed to be achieved only if achieved in the course of the applicable Award
Period.</font></p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-left:.25in;text-align:justify;text-autospace:
none; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.25in;text-align:justify;text-autospace:
none; margin-right:0.05in; margin-top:0in'><b><font size="3">PERFORMANCE MEASURES</font></b><font size="3">. Certain performance categories set forth in
<u>Section
V</u> of the Plan. Performance Measures shall be set forth by the Committee in
the Award Parameters Description.</font></p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-left:.25in;text-align:justify;text-autospace:
none; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:1.8pt;margin-right:0.05in;margin-bottom:
0in;margin-left:.25in;margin-bottom:.0001pt;text-align:justify;text-autospace:
none'><b><font size="3">PRO-DEX, INC. </font></b><font size="3">Pro-Dex, Inc., a Colorado corporation.</font></p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-top:1.8pt;margin-right:0.05in;margin-bottom:
0in;margin-left:.25in;margin-bottom:.0001pt;text-align:justify;text-autospace:
none'><b>&nbsp;</b></p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:1.8pt;margin-right:0.05in;margin-bottom:
0in;margin-left:.25in;margin-bottom:.0001pt;text-align:justify;text-autospace:
none'><b><font size="3">SEPERATION FROM SERVICE</font></b><font size="3">. &quot;Separation from service&quot;, as
such term is defined in Section 1.409A-1(h) of the final regulations and other
applicable guidance promulgated under Section 409A of the Code.</font></p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-top:1.8pt;margin-right:0.05in;margin-bottom:
0in;margin-left:.25in;margin-bottom:.0001pt;text-align:justify;text-autospace:
none'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:1.8pt;margin-right:.05in;margin-bottom:
0in;margin-left:.25in;margin-bottom:.0001pt;text-align:justify;text-autospace:
none'><b>TSR</b>. TSR (total shareholder return)
shall mean A minus B expressed as a percentage of B<font size="3"> (A-B)/x100)], where
A is the per-share price of a Company's common stock at the end of the
applicable Award Period and B is the average per-share price of the Company's
common stock at the beginning of the applicable Award Period. For purposes of
calculations of TSR, cash dividends paid on a share of common stock shall be
deemed to be reinvested in the Company's common stock on the day they are paid
at the average of the high and the low per-share price of that Company's common
stock on that day, as quoted on the primary exchange on which the Company's
shares are listed. The value at the end of the applicable Award Period of such
common stock deemed purchased with cash dividends shall be added to A (above)
for purposes of calculation of TSR. If in the course of the Award Period the
outstanding shares of common stock of the Company are increased or decreased or
changed into or exchanged for a different number or kind of shares or other
securities of the Company by reason of any recapitalization, reclassification,
reorganization, stock split, reverse split, combination of shares, exchange of
shares, stock dividend or other distribution payable in capital stock of the
Company or other increase or decrease in such shares effected without receipt of consideration by the Company,
an appropriate and proportionate adjustment approved by the Committee shall be
made to the calculation of TSR set
forth above. For purposes of determining TSR, the stock price at the beginning
date and end date of an Award Period shall be the average of the closing
stock prices for the ninety (90) days immediately preceding such dates as
quoted on the primary exchange on which the company's shares are listed.</font></p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-top:23.4pt;text-align:justify;text-autospace:
none; margin-left:0in; margin-right:0.05in'>III. EFFECTIVE DATE</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:.05in;margin-right:0.05in;margin-bottom:0in;
margin-left:.25in;margin-bottom:.0001pt;text-align:justify;text-autospace:none'>The Plan
is effective as of July 1, 2010.</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:.05in;margin-right:0.05in;margin-bottom:0in;
margin-left:.25in;margin-bottom:.0001pt;text-align:justify;text-autospace:none'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-left:.25in;text-align:justify;text-indent:
- -.25in;text-autospace:none; margin-right:0.05in; margin-top:0in'>IV. DETERMINATION OF
AMOUNTS OF AND ELIGIBILITY FOR LONG-TERM INCENTIVE COMPENSATION AWARDS</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-right:.05in;text-align:justify;text-indent:
..25in;text-autospace:none; margin-left:0in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in' align="center">-3-</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in' align="center">&nbsp;</p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>
	<hr size=2 width="100%" noshade color=navy align=center></div>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<font face="Times New Roman"><br clear=all
style='page-break-before:always'></font>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-right:.05in;text-align:justify;text-indent:
..25in;text-autospace:none; margin-left:0in; margin-top:0in'>Unless otherwise
provided in the Plan, if the Performance Goals are achieved in the course of
the applicable Award Period and such achievements are certified by the
Committee based upon the audited financial statements for the last fiscal year
of the Award Period contained in the Company's annual report filed with the Securities and Exchange Commission,
then Long-Term Incentive Compensation Awards will be paid in amounts determined
by the Committee and ratified by the Board of Directors pursuant to the
Plan and the Award Parameters Description. Unless otherwise set forth in the
Award Parameters Description with respect to
any Participant: (i) the amount of the Long-Term Incentive Compensation Award
payable in connection with achieving any Performance Goal of TSR shall
not exceed fifty percent (50%) of the maximum Long-Term Incentive Compensation
Award that can be made under the Plan in connection with the applicable Award Period; and (ii) the amount of
the Long-Term Incentive Compensation Award payable in connection with achieving
any Performance Goal(s) other than
TSR shall not exceed fifty percent (50%) of the maximum Long-Term Incentive
Compensation Award that can be made under the Plan in connection with
the applicable Award Period.</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-top:23.4pt;text-align:justify;text-autospace:
none; margin-left:0in; margin-right:0.05in'>V. PERFORMANCE MEASURES</p>
<p align="justify" style="margin-right: 0.05in">A. <u>Generally.</u> Unless otherwise
provided in the Plan, payment of Long-Term Incentive Compensation Awards is
conditioned on the attainment in the course
of the Award Period of Performance Goals set with respect to Performance Measures.
The Performance Goals and Performance Measures need not be identical
with respect to all the Participants. Performance Goals may be established
based upon the Company's performance in isolation or by judging the
Company's performance relative to one or more comparator companies or upon the
performance of one or more of the Company's subsidiaries or
divisions. Performance Goals and the amount of Long-Term Incentive Compensation
Award payable with respect to the achievement of any Performance Goal for any
Long-Term Incentive Award that is
intended to qualify as &quot;performance-based compensation&quot; under Section 162(m) of the Code must be
established in writing no later than September 13 (i.e. 75 days) following the
beginning of the applicable Award Period and may be based on one or more
of the following objective criteria (the &quot;Performance Measures&quot;):</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-top:.05in;margin-right:.05in;margin-bottom:
0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:
none'>&nbsp;</p>
<table border="0" style="border-collapse: collapse" width="100%" id="table1">
	<tr>
		<td style="width: 0.5in">&nbsp;</td>
		<td width="71" nowrap>
		<p style="margin-top: 0; margin-bottom: 0; margin-right:0.05in"><font face="Times New Roman">(1)</font></td>
		<td width="1275">
		<p style='margin-bottom:0;font-family:"Times New Roman";text-align:justify;text-autospace:none; margin-top:0; margin-right:0.05in'>TSR, including its components of stock price
appreciation, dividends and/or dividend yield;</p></td>
	</tr>
	<tr>
		<td style="width: 0.5in">&nbsp;</td>
		<td width="71" nowrap>&nbsp;</td>
		<td width="1275">&nbsp;</td>
	</tr>
	<tr>
		<td style="width: 0.5in">&nbsp;</td>
		<td width="71" nowrap>
		<p style="margin-top: 0; margin-bottom: 0; margin-right:0.05in"><font face="Times New Roman">(2)</font></td>
		<td width="1275">
		<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:0;margin-bottom:0in;
margin-bottom:0;text-align:justify;text-autospace:none; margin-right:0.05in'>Return on assets,
equity, invested capital, cash flow, investment, or sales;</p></td>
	</tr>
	<tr>
		<td style="width: 0.5in">&nbsp;</td>
		<td width="71" nowrap>&nbsp;</td>
		<td width="1275">&nbsp;</td>
	</tr>
	<tr>
		<td style="width: 0.5in">&nbsp;</td>
		<td width="71" nowrap>
		<p style="margin-top: 0; margin-bottom: 0; margin-right:0.05in"><font face="Times New Roman">(3)</font></td>
		<td width="1275">
		<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:0;margin-bottom:
0in;margin-bottom:0;text-align:justify;text-autospace:none; margin-right:0.05in'>Sales, including
gross margin;</p></td>
	</tr>
	<tr>
		<td style="width: 0.5in">&nbsp;</td>
		<td width="71" nowrap>&nbsp;</td>
		<td width="1275">&nbsp;</td>
	</tr>
	<tr>
		<td style="width: 0.5in">&nbsp;</td>
		<td width="71" nowrap>
		<p style="margin-top: 0; margin-bottom: 0; margin-right:0.05in"><font face="Times New Roman">(4)</font></td>
		<td width="1275">
		<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-top:0;margin-bottom:
0in;margin-bottom:0;text-align:justify;text-autospace:none; margin-right:0.05in'>Pre-tax or after-tax profit
levels, including: earnings per share; earnings before interest and taxes;
earnings before interest, taxes, depreciation and amortization; net operating
profits after tax, and net income;</p></td>
	</tr>
	<tr>
		<td style="width: 0.5in">&nbsp;</td>
		<td width="71" nowrap>&nbsp;</td>
		<td width="1275">&nbsp;</td>
	</tr>
	<tr>
		<td style="width: 0.5in">
		<p style="margin-top: 0; margin-bottom: 0; margin-right:0.05in"><font face="Times New Roman">&nbsp;&nbsp;
		</font></td>
		<td width="71" nowrap>
		<p style="margin-top: 0; margin-bottom: 0; margin-right:0.05in"><font face="Times New Roman">(5)</font></td>
		<td width="1275">
		<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:0;margin-bottom:
0in;margin-bottom:0;text-align:justify;text-autospace:none; margin-right:0.05in'>Cash flow and
cash flow return on investment;</p></td>
	</tr>
	<tr>
		<td style="width: 0.5in">&nbsp;</td>
		<td width="71" nowrap>&nbsp;</td>
		<td width="1275">&nbsp;</td>
	</tr>
	<tr>
		<td style="width: 0.5in">&nbsp;</td>
		<td width="71" nowrap>
		<p style="margin-top: 0; margin-bottom: 0; margin-right:0.05in"><font face="Times New Roman">(6)</font></td>
		<td width="1275">
		<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:0;margin-bottom:0in;
margin-bottom:0;text-align:justify;text-autospace:none; margin-right:0.05in'>Economic profit
and/or cost of capital;</p></td>
	</tr>
	<tr>
		<td style="width: 0.5in">&nbsp;</td>
		<td width="71" nowrap>&nbsp;</td>
		<td width="1275">&nbsp;</td>
	</tr>
	<tr>
		<td style="width: 0.5in">&nbsp;</td>
		<td width="71" nowrap>
		<p style="margin-top: 0; margin-bottom: 0; margin-right:0.05in"><font face="Times New Roman">(7)</font></td>
		<td width="1275">
		<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:0;margin-bottom:0in;
margin-bottom:0;text-align:justify;text-autospace:none; margin-right:0.05in'>Turnover of
assets, capital, or inventory;</p></td>
	</tr>
	<tr>
		<td style="width: 0.5in">&nbsp;</td>
		<td width="71" nowrap>&nbsp;</td>
		<td width="1275">&nbsp;</td>
	</tr>
	<tr>
		<td style="width: 0.5in">&nbsp;</td>
		<td width="71" nowrap>
		<p style="margin-top: 0; margin-bottom: 0; margin-right:0.05in"><font face="Times New Roman">(8)</font></td>
		<td width="1275">
		<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-top:0;margin-bottom:0in;
margin-bottom:0;text-align:justify;text-autospace:none; margin-right:0.05in'>Levels of operating expense or
other expense items as reported on the income statement, including operating
and maintenance expense;</p></td>
	</tr>
	<tr>
		<td style="width: 0.5in">&nbsp;</td>
		<td width="71" nowrap>&nbsp;</td>
		<td width="1275">&nbsp;</td>
	</tr>
	<tr>
		<td style="width: 0.5in">&nbsp;</td>
		<td width="71" nowrap>
		<p style="margin-top: 0; margin-bottom: 0; margin-right:0.05in"><font face="Times New Roman">(9)</font></td>
		<td width="1275">
		<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-top:0;margin-bottom:0in;
margin-bottom:0;text-align:justify;text-autospace:none; margin-right:0.05in'>Measures of customer satisfaction
and customer service, including the relative improvement therein; and</p></td>
	</tr>
	<tr>
		<td style="width: 0.5in">&nbsp;</td>
		<td width="71" nowrap>&nbsp;</td>
		<td width="1275">&nbsp;</td>
	</tr>
	<tr>
		<td style="width: 0.5in">&nbsp;</td>
		<td width="71" nowrap>
		<p style="margin-top: 0; margin-bottom: 0; margin-right:0.05in"><font face="Times New Roman">(10)</font></td>
		<td width="1275">
		<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:0;margin-bottom:0in;
margin-bottom:0;text-align:justify;text-autospace:none; margin-right:0.05in'>Market share,
including by product line or geographic market or submarkets.</p></td>
	</tr>
</table>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:.1in;margin-right:0.05in;margin-bottom:0in;
margin-left:.6in;margin-bottom:.0001pt;text-align:justify;text-indent:0in;
text-autospace:none'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:.1in;margin-right:0.05in;margin-bottom:0in;
margin-left:.6in;margin-bottom:.0001pt;text-align:justify;text-indent:0in;
text-autospace:none'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in' align="center">-4-</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in' align="center">&nbsp;</p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>
	<hr size=2 width="100%" noshade color=navy align=center></div>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<font face="Times New Roman"><br clear=all
style='page-break-before:always'></font>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:1.8pt;margin-right:0.05in;margin-bottom:
0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.25in;
text-autospace:none'>Performance
Goals may be determined by reference to levels of and/or growth in a
Performance Measure. Performance Goals with respect to Performance<font size="3"> Measures shall be objectively measurable and
established for a period coinciding with or ending within the Award Period.</font></p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-top:1.8pt;margin-right:0.05in;margin-bottom:
0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.25in;
text-autospace:none'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:.05in;margin-right:0.05in;margin-bottom:0in;
margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.25in;
text-autospace:none'>B.<font size="3"> <u>Certain Factors and Events Excluded.</u> In establishing Performance Goals and Performance
Measures for Participants and in certifying the achievement of Performance
Goals as the end of an Award Period, the Committee may include or exclude the
impact of specified objective events, including any of the following: expenses as a result of restructuring
or productivity initiatives, non-operating items; acquisition expenses; and any
other items of gain, loss or expense that are determined to be
extraordinary or unusual in nature or infrequent in occurrence or related to
the disposal of a segment of a business or to a change of accounting
principles.</font></p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-top:.05in;text-align:justify;text-autospace:
none; margin-left:0in; margin-right:0.05in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:.05in;margin-right:0.05in;margin-bottom:
0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.25in;
text-autospace:none'>C.<font size="3"> <u>Default Performance Measures.</u> Unless otherwise specified by the Committee and
ratified by the Board of Directors, the Performance Measures shall consist of:
(i) TSR relative to a group of comparator companies; and (ii) one or more
Performance Goals other than TSR.</font></p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:.35in;margin-right:0.05in;margin-bottom:0in;
margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:0in;
text-autospace:none'>VI.&nbsp;&nbsp;&nbsp;&nbsp;
PAYMENT OF
LONG-TERM INCENTIVE COMPENSATION AWARDS</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:.3in;text-autospace:
none; margin-left:0in; margin-right:0.05in; margin-top:0in'>A.&nbsp; <u>Type of
Payment.</u>&nbsp; Unless otherwise provided in the Plan, the payment of a Long-Term
Incentive Compensation Award shall be made on the first day following the
approval of such award by the Committee and the filing of the fiscal year end
Form 10-K for the<font size="3"> final year of the Award
Period to which it relates; provided that, subject to Section VII, the
Participant is actively employed with the Company on such date. Unless
otherwise provided in the Plan, Long-Term Incentive Compensation Awards shall
be paid in shares of Company restricted stock valued at the closing price of
the Company&#146;s shares on the day preceding such payment.&nbsp; For the purposes of
this Section VI, payment within 75 days following a specified payment date
shall be deemed to constitute payment on the specified payment date.</font></p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:justify;text-indent:.3in;text-autospace:
none; margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:justify;text-indent:.3in;text-autospace:
none; margin-left:0in; margin-right:0.05in; margin-top:0in'>B.&nbsp; <u>Restriction</u>.&nbsp; Unless otherwise
specified by the Committee and ratified by the Board of Directors, no restricted
stock awarded under the Plan may be sold, transferred, assigned, pledged or
otherwise encumbered or disposed of by the Participant receiving such restricted
stock until 30 days after its payment to Participant as described in subsection
A of Section VI herein.&nbsp; The restrictions described herein shall be evidenced
by a certificate, which certificate shall be held in such form and manner as
determined by the Committee and shall contain an appropriate legend clearly
stating the restricted stock represented by the certificate is restricted according
to the terms of the Plan.</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:justify;text-indent:.3in;text-autospace:
none; margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:justify;text-indent:.3in;text-autospace:
none; margin-left:0in; margin-right:0.05in; margin-top:0in'>C.&nbsp; <u>Source of Long-Term Incentive
Compensation Awards</u>.&nbsp; In the case of a Long-Term Incentive Compensation
Award under the Plan that is paid in shares of restricted Company stock, such
shares shall be distributed as part of and in accordance with the 2004 Plan as
amended from time to time.&nbsp; The aggregate number of shares of restricted stock issued
under the Plan, when combined with all other shares issued by the Company under
the 2004 Plan, shall not exceed the number of shares authorized under the 2004
Plan.&nbsp; Furthermore, any Long-Term Incentive Compensation Award shall be of the
same type of awards authorized under the 2004 Plan.</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:.3in;margin-right:0.05in;margin-bottom:0in;
margin-left:0in;margin-bottom:.0001pt;text-indent:0in;text-autospace:none'>VII.&nbsp; TERMINATION OF SERVICE, SPIN-OFFS AND
SIMILAR TRANSACTIONS DURING THE AWARD PERIOD</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in' align="center">-5-</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in' align="center">&nbsp;</p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>
	<hr size=2 width="100%" noshade color=navy align=center></div>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<font face="Times New Roman"><u><br clear=all
style='page-break-before:always'></u></font>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:0in;text-align:justify;text-indent:.3in;
text-autospace:none; margin-right:0.05in; margin-top:0in'>A. <u><font size="3">Involuntary Separation from Service, Death or
Disability.</font></u><font size="3"> Subject to Section VII.
C., if before the end of an Award Period a Participant experiences a Separation
from Service with the Company by virtue of termination of the Participant's
service by the Company, other than for Cause, or if a Participant experiences
Separation from Service with the Company due to death or Disability, the
Participant's Long-Term Incentive Compensation Awards for any Award Period in
effect at the time of such Separation from Service will be prorated on the
basis of the ratio of the number of days of Participant's service during such
Award Period prior to such Separation from Service to the total number of days
in such Award Period. The determination of such prorated Long-Term Compensation
Awards will be based on the attainment of the Performance Goals with respect to
the applicable Performance Measure(s) and will be paid on the date the Participant would have received payments
with respect to such Long-Term Compensation Awards had the Participant not
experienced a Separation from Service with the Company.</font></p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-top:5.4pt;text-align:justify;text-autospace:
none; text-indent:0.3in; margin-left:0in; margin-right:0.05in'>B. <u>Termination by the
Company for Cause, Voluntary Separation from Service.</u> In the event a
Participant experiences a Separation from Service with the Company by virtue of
termination of the Participant's service by the Company for Cause,
or by virtue of voluntary termination of
service by the Participant, the Participant shall have no rights whatsoever to
any unpaid Long-Term Compensation Awards and no payments with respect to
any unpaid Long-Term Compensation Awards shall be made to the Participant.</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:9.0pt;margin-right:0.05in;margin-bottom:0in;
margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.3in;
text-autospace:none'><font size="3">C. <u>Termination Close In Time To the Change in Control of
Pro-Dex, Inc.</u> In the event the
Participant experiences a Separation from Service with the Company (not
including separation caused by death or Disability) by virtue of termination of
the Participant's service by the Company less than six (6) months following a
Change in Control of Pro-Dex, Inc., and such Separation from Service occurs
prior to the end of the Award Period, then upon the Participant's Separation from Service, all Performance Goals
with respect to Performance Measures shall be deemed to have been met with
respect to such Participant and any applicable Long-Term Incentive
Compensation Awards shall be paid to such Participant on the date of Separation
from Service. This Section VII. C. shall not apply if the Participant's
service with the Company is terminated by the Company for Cause. Additionally,
this Section VII. C. shall not apply unless at the time of Change in Control of
Pro-Dex, Inc., the entity for whom the Participant is performing services is
Pro-Dex, Inc. or Pro-Dex, Inc. is the &quot;majority shareholder&quot;
(as such term is defined in Section 1.409A-3(i)(5)(ii)(3) of the final
regulations promulgated under Section 409A of the Internal Revenue Code) of
such entity.</font></p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:5.4pt;margin-right:0.05in;margin-bottom:0in;
margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.3in;
text-autospace:none'>D. <u><font size="3">Spin-Offs and Similar Transactions.</font></u><font size="3"> In the event an entity (&quot;Departed Entity&quot;)
that is a part of the Company ceases to be a part of the Company (the &quot;Departure&quot;), a Participant
who at the time of the Departure is performing services for the Departed
Entity, shall be considered, for purposes of Section VII. A.., to have experienced a Separation from Service with
the Company by virtue of termination of the Participant's
service by the Company without Cause; provided that such Participant
does not perform any services for the Company immediately after the Departure.
Such Separation from Service with the Company will be deemed to have occurred
at the time of the Departure.</font></p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-top:5.4pt;text-align:justify;text-autospace:
none; margin-left:0in; margin-right:0.05in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in' align="center">-6-</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in' align="center">&nbsp;</p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>
	<hr size=2 width="100%" noshade color=navy align=center></div>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<font face="Times New Roman"><u><br clear=all
style='page-break-before:always'></u></font>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:1.8pt;margin-right:0.05in;margin-bottom:0in;
margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.3in;
text-autospace:none'>E. <u><font size="3">Specified Employees.</font></u><font size="3">
Notwithstanding anything in the Plan to the contrary, if as of the date of
Participant's Separation from Service, Participant is a
&quot;specified employee&quot;, as defined under Section 409A of the
Internal Revenue Code of 1986, as amended (&quot;Section 409A&quot;)
or any regulations or Treasury guidance promulgated thereunder (&quot;Section
409A Guidance&quot;), Participant shall not be entitled to any
payments paid upon such Separation from Service until the earlier of (i) the
date which is six months after his Separation from Service for any reason other
than death or (ii) the date of his death. The provisions of this Section VII.
E. shall apply solely to payments made pursuant to a plan that provides for
deferral of compensation. Whether a plan provides for deferral of compensation
shall be determined pursuant to Section 409A or Section 409A Guidance. Any
payments that would have been paid to Participant prior to the earlier of (i)
the date which is six months after his separation from service for any reason
other than death or (ii) the date of his death, were it not for this Section
VII. E., shall be accumulated and paid to Participant on the first day of the
7th month following Participant's Separation from Service.
Notwithstanding the foregoing, the provisions of this Section VII. E. shall not
</font>apply to payments
made under the circumstances described in Section 1.409A-3(j)(4)(ii) (domestic
relations order), 1.409A-3 (j)(4)(iii) (conflicts of interest) or<font size="3"> 1.409A-3 (j)(4)(vi) (payment of employment taxes) of
the final Treasury Department regulations issued pursuant to Section 409A.</font></p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-right:.05in;text-align:justify;text-autospace:
none; margin-left:0in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:0in;margin-right:0.05in;margin-bottom:0in;
margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.3in;
text-autospace:none'>F. <u>Timing of Payments.</u> For the purposes of this Section
VII, payment within 75 days following a specified payment date shall be deemed
to constitute<font size="3"> payment on the specified
payment date.</font></p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-right:0.05in;text-align:justify;text-autospace:
none; margin-left:0in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-right:0.05in;text-align:justify;text-autospace:
none; margin-left:0in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:.2in;text-align:justify;text-autospace:none; margin-left:0in; margin-right:0.05in'>VIII.
RETURN OF OR REDUCTION IN THE LONG-TERM INCENTIVE COMPENSATION AWARD</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:.2in;text-align:justify;text-autospace:none; margin-left:0in; margin-right:0.05in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:justify;text-indent:.3in;text-autospace:
none; margin-left:0in; margin-right:0.05in; margin-top:0in'>In the event that following the end of the
Award Period, it is determined by the Committee and ratified by the Board of
Directors that a Long-Term Incentive
Compensation Award was, in whole or in part, based on incorrect data (including
financial results which pursuant to applicable laws, roles, regulations
or applicable accounting principles are required to be restated), the
Participant shall return to the Company the Overpayment Amount, where the
Overpayment Amount shall be equal to the Long-Term Incentive Compensation Award
distributed to the Participant, reduced by the Long-Term Incentive Compensation
Award the Participant would have received
had the correct data been used in the calculation of the Long-Term Incentive
Compensation Award, as determined by the Committee in good faith. The
determinations made by the Committee and ratified by the Board of Directors
pursuant to this Section shall be conclusive and binding on the Participant
unless reached in an arbitrary and capricious manner.</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:9.0pt;text-align:justify;text-autospace:none; margin-left:0in; margin-right:0.05in'>IX.
SPECIAL AWARDS AND OTHER PLANS</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:9.0pt;text-align:justify;text-autospace:none; margin-left:0in; margin-right:0.05in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:justify;text-indent:.3in;text-autospace:
none; margin-left:0in; margin-right:0.05in; margin-top:0in'>Nothing contained in the Plan shall
prohibit the Company or any of its subsidiaries from granting special
performance or recognition awards, under such conditions
and in such form and manner as it sees fit, to employees (including
Participants) for meritorious service of any nature. In addition, nothing
contained in the Plan shall prohibit the Company or any of its
subsidiaries from establishing other incentive compensation plans providing for
the payment of incentive</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-top:1.8pt;text-align:justify;text-autospace:
none; margin-left:0in; margin-right:0.05in'>compensation to employees (including
Participants).</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-top:1.8pt;margin-right:0.05in;margin-bottom:
0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.25in;
text-autospace:none'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-autospace:
none; margin-left:0in; margin-right:0.05in; margin-top:0in'>X. ADMINISTRATION,
AMENDMENT AND INTERPRETATION OF THE PLAN</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-autospace:
none; margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-left:.3in;text-align:justify;text-autospace:
none; margin-right:0.05in; margin-top:0in'>A.&nbsp; <u>Amendment and Termination</u>.&nbsp; The
Board of Directors shall have the right to amend the Plan from time to time or
to repeal it entirely or to direct the discontinuance of Long-Term Incentive
Compensation Awards either temporarily or permanently; provided, however, that
no amendment of the Plan shall operate to annul a Long-Term Incentive
Compensation Award with respect to an Award Period in effect at the time of the
amendment. Notwithstanding the foregoing,
and subject to Section VII. C., in the event this Plan is terminated before the
last day of an Award Period, Long-Term Incentive Compensation Awards
payable for such Award Period will be prorated on the basis of the ratio of the
number of weeks in such Award Period prior to such termination to the aggregate
number of weeks in such Award Period and will be based on the attainment of
Performance Goals with respect to the applicable Performance Measures and paid only after the end of such Award Period in
accordance with Section VI above which will be deemed to continue until the
expiration thereof as if this Plan had not been terminated. .</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-top:1.8pt;text-align:justify;text-autospace:
none; margin-left:0in; margin-right:0.05in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in' align="center">-7-</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in' align="center">&nbsp;</p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>
	<hr size=2 width="100%" noshade color=navy align=center></div>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<font face="Times New Roman"><br clear=all
style='page-break-before:always'></font>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-top:.05in;margin-right:0.05in;margin-bottom:
0in;margin-left:.3in;margin-bottom:.0001pt;text-align:justify;text-autospace:
none'>&nbsp;B. <u>Administration</u>. The Committee
shall determine the parameters necessary to grant Long-Term Incentive
Compensation Awards, including Award Periods,
Performance Measures, Performance Goals and the amounts of Long-Term Incentive
Compensation Awards with respect to each Performance Goal. The Committee
shall have full authority to administer the Plan, including authority to
interpret and construe any provision of the Plan and the terms of any Long-Term
Incentive Compensation Awards issued under it and to adopt such rules and
regulations for administering the Plan as it may deem necessary. Decisions of
the Committee shall be final and binding on all parties and all decisions,
determinations, selections and other actions permitted or required to be taken
or made by the Committee with respect to the Plan shall be subject to the
absolute discretion of the Committee.</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-top:.05in;margin-right:0.05in;margin-bottom:
0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:
none'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-top:1.8pt;margin-right:0.05in;margin-bottom:0in;
margin-left:.3in;margin-bottom:.0001pt;text-align:justify;text-autospace:none'>C.
<u>Delegation to Officers or Employees</u>.&nbsp; The
Board of Directors and the Committee, as applicable, may designate officers or
employees of the Company to assist the Committee in the administration of the
Plan.</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-top:.25in;text-align:justify;text-autospace:
none; margin-left:0in; margin-right:0.05in'>M. MISCELLANEOUS</p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-top:.25in;text-align:justify;text-autospace:
none; margin-left:0in; margin-right:0.05in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:27.0pt;
text-autospace:none; margin-top:0in; margin-right:0.05in'>A.&nbsp;&nbsp;<u><font size="3">Expenses.</font></u><font size="3"> All expenses and costs in connection with the
operation of the Plan shall be borne by the Company (including any employment
taxes which applicable law requires the Company to pay).</font></p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:27.0pt;
text-autospace:none; margin-top:0in; margin-right:0.05in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:27.0pt;
text-autospace:none; margin-top:0in; margin-right:0.05in'>B.&nbsp;&nbsp;<u><font size="3">Taxes.</font></u><font size="3"> All Long-Term Incentive Compensation Awards under the
Plan are subject to withholding, where applicable, for federal, state and local
taxes.</font></p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:27.0pt;
text-autospace:none; margin-top:0in; margin-right:0.05in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:27.0pt;
text-autospace:none; margin-top:0in; margin-right:0.05in'>C.&nbsp; <u><font size="3">Unsecured Obligation.</font></u><font size="3"> Unless otherwise determined by the Committee, all Long-Term
Incentive Compensation Awards will be paid from the Company's
general assets, and nothing contained in this Plan will require the Company to
set aside or hold in trust any funds for the benefit of any Participant, who
will have the status of a general unsecured creditor of the Company.<a
name=Verdatum></a></font></p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:27.0pt;
text-autospace:none; margin-top:0in; margin-right:0.05in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:1.8pt;margin-bottom:0in;
margin-bottom:.0001pt;text-align:justify;text-indent:27.0pt;
text-autospace:none; margin-right:0.05in'>D.&nbsp; <u><font size="3">No Right to Employment.</font></u><font size="3"> This Plan will not confer upon any Participant any
right with respect to continuance of employment or other service with the Company or any subsidiary, nor will it interfere
in any way with any right the Company or any subsidiary would otherwise have to
terminate or modify the terms of such Participant's
employment or other service at any time.</font></p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:1.8pt;margin-bottom:0in;
margin-bottom:.0001pt;text-align:justify;text-indent:27.0pt;
text-autospace:none; margin-right:0.05in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:5.4pt;margin-bottom:0in;
margin-bottom:.0001pt;text-align:justify;text-indent:27.0pt;
text-autospace:none; margin-right:0.05in'>E.&nbsp;&nbsp; <font size="3"><u>No Assignment, Alienation.</u>
Except as otherwise provided in this Plan, no right or benefit under this Plan
will be subject to anticipation, alienation, sale, assignment, pledge,
encumbrance, or charge, and any attempt to anticipate, alienate, sell, assign,
pledge, encumber, or charge such right or benefit will be void. No such right
or benefit will in any manner be liable for or subject to the debts,
liabilities, or torts of a Participant.</font></p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:5.4pt;margin-bottom:0in;
margin-bottom:.0001pt;text-align:justify;text-autospace:
none; text-indent:27pt; margin-right:0.05in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:27.0pt;
text-autospace:none; margin-top:0in; margin-right:0.05in'>F.&nbsp;&nbsp;&nbsp;
<font size="3"><u>Separate
Provisions.</u> If any provision in this Plan is held to be invalid or
unenforceable, no other provision of this Plan will be affected thereby.</font></p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:justify;text-autospace:
none; text-indent:27pt; margin-top:0in; margin-right:0.05in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:27.0pt;
text-autospace:none; margin-top:0in; margin-right:0.05in'>G.&nbsp;&nbsp; <u><font size="3">Applicable Law.</font></u><font size="3"> This Plan will be governed by and construed in
accordance with applicable United States Federal law and, to the extent not
preempted by such Federal law, in accordance with the laws of the State of
California, without giving effect to the principles of conflict of laws
thereof.</font></p>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";text-align:justify;text-autospace:none; text-indent:27pt; margin-top:0in; margin-right:0.05in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-top:.1in;margin-bottom:0in;
margin-bottom:.0001pt;text-align:justify;text-indent:27.0pt;
text-autospace:none; margin-right:0.05in'>H.&nbsp;&nbsp; <u><font size="3">Liability for the Long-Term
Incentive Compensation Awards.</font></u><font size="3"> Only
the entity for which the Participant performs services at the commencement of
the Award Period shall be liable with respect to the Long-Term Incentive
Compensation Award which relates to an Award Period.</font></p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in' align="center">-8-</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in' align="center">&nbsp;</p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>
	<hr size=2 width="100%" noshade color=navy align=center></div>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<font face="Times New Roman"><br clear=all
style='page-break-before:always'></font>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none; margin-left:0in; margin-right:0.05in; margin-top:0in'>
<b>EXHIBIT
A</b></p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none; margin-left:0in; margin-right:0.05in; margin-top:0in'>
<b>&nbsp;</b></p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none; margin-left:0in; margin-right:0.05in; margin-top:0in'>
<b>Participation Agreement for
____________________ for the award dated ____________</b></p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-autospace:none; margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.25in;text-indent:-.25in;text-autospace:
none; margin-right:0.05in; margin-top:0in'><b>A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Total Shareholder Return (TSR):&nbsp;
(50% of Award)</b></p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in'>
<b>&nbsp;</b></p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in'>The TSR
will be measured against the comparator companies as set forth in the Long-Term
Incentive Plan.</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in'>
<b>TSR
Award will be based as follows:</b></p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in'>
<b>&nbsp;</b></p>
<table class=MsoNormalTable border=1 cellspacing=0 cellpadding=0
 style='border-collapse:collapse;border:none' width="100%">
	<tr>
		<td valign=top style='border:1.0pt solid black;
  padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in'>Minimum</p>
		</td>
		<td valign=top style='border-right:1.0pt solid black; border-top:1.0pt solid black; border-bottom:1.0pt solid black; border-left:medium none; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0.05in; margin-top:0in'>Company TSR must be at the 40th
  percentile of comparator companies</p></td>
		<td valign=top style='border-right:1.0pt solid black; border-top:1.0pt solid black; border-bottom:1.0pt solid black; border-left:medium none; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0.05in; margin-top:0in'>12.5% of Annual Base Pay at the
  end of fiscal year</p></td>
	</tr>
	<tr>
		<td valign=top style='border-left:1.0pt solid black; border-right:1.0pt solid black; border-bottom:1.0pt solid black; border-top:medium none; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in'>Target</p>
		</td>
		<td valign=top style='border-top:medium none;border-left:
  medium none;border-bottom:1.0pt solid black;border-right:1.0pt solid black;
  padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0.05in; margin-top:0in'>Company TSR must be at the 60th
  percentile of comparator companies</p></td>
		<td valign=top style='border-top:medium none;border-left:medium none;
  border-bottom:1.0pt solid black;border-right:1.0pt solid black;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0.05in; margin-top:0in'>25.0% of Annual Base Pay at the
  end of fiscal year</p></td>
	</tr>
	<tr>
		<td valign=top style='border-left:1.0pt solid black; border-right:1.0pt solid black; border-bottom:1.0pt solid black; border-top:medium none; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in'>Maximum</p>
		</td>
		<td valign=top style='border-top:medium none;border-left:
  medium none;border-bottom:1.0pt solid black;border-right:1.0pt solid black;
  padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0.05in; margin-top:0in'>Company TSR must be at the 75th
  percentile of comparator companies.</p></td>
		<td valign=top style='border-top:medium none;border-left:medium none;
  border-bottom:1.0pt solid black;border-right:1.0pt solid black;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0.05in; margin-top:0in'>37.5% of Annual Base Pay at the
  end of the fiscal year</p></td>
	</tr>
</table>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-left:.25in;text-align:justify; margin-right:0.05in; margin-top:0in'>
<font size="2">If the minimum Performance Goal of 40th
percentile is not met, the amount payable is $0.00.&nbsp; If the maximum Performance
Goal is exceeded, the amount payable will not exceed the amount set forth
above.&nbsp; For performance between minimum and target Performance Goals and
between target and maximum Performance goals, the amount payable will be
determined based upon straight-line interpolation.</font></p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in'>
<b>&nbsp;</b></p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.25in;text-align:justify;text-indent:
- -.25in;text-autospace:none; margin-right:0.05in; margin-top:0in'><b>B.&nbsp;&nbsp;&nbsp;Strategic Objectives <i>(note &#150; the objectives reflected
below are only examples and are not intended to be indicative of objectives for
each participant)</i>:&nbsp; </b></p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify; margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify;text-indent:-.25in;
text-autospace:none; margin-right:0.05in; margin-top:0in'>1.&nbsp;&nbsp;(Example) Turn around our Program
into a profitable business by achieving $3.0M Operating Income by end of fiscal
2013.</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify; margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<div align=center>
	<table class=MsoNormalTable border=1 cellspacing=0 cellpadding=0
 style='margin-left:-15.05pt;border-collapse:collapse;border:none'>
		<tr>
			<td width=140 valign=top style='width:104.9pt;border:solid black 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
			<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify; margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
			</td>
			<td width=95 valign=top style='width:71.05pt;border:solid black 1.0pt;
  border-left:none;padding:0in 5.4pt 0in 5.4pt'>
			<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0.05in; margin-top:0in'>2010</p>
			</td>
			<td width=93 valign=top style='width:70.0pt;border:solid black 1.0pt;
  border-left:none;padding:0in 5.4pt 0in 5.4pt'>
			<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0.05in; margin-top:0in'>2013</p>
			</td>
		</tr>
		<tr>
			<td width=140 valign=top style='width:104.9pt;border:solid black 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
			<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify; margin-left:0in; margin-right:0.05in; margin-top:0in'>Operating Income</p>
			</td>
			<td width=95 valign=top style='width:71.05pt;border-top:none;border-left:
  none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
			<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0.05in; margin-top:0in'>$1.2M</p>
			</td>
			<td width=93 valign=top style='width:70.0pt;border-top:none;border-left:none;
  border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
			<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0.05in; margin-top:0in'>$3.0M</p>
			</td>
		</tr>
		<tr>
			<td width=140 valign=top style='width:104.9pt;border:solid black 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt'>
			<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify; margin-left:0in; margin-right:0.05in; margin-top:0in'>Net Sales</p>
			</td>
			<td width=95 valign=top style='width:71.05pt;border-top:none;border-left:
  none;border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;
  padding:0in 5.4pt 0in 5.4pt'>
			<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0.05in; margin-top:0in'>$18.4M</p>
			</td>
			<td width=93 valign=top style='width:70.0pt;border-top:none;border-left:none;
  border-bottom:solid black 1.0pt;border-right:solid black 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
			<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0.05in; margin-top:0in'>$25.0M</p>
			</td>
		</tr>
	</table></div>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.25in;text-align:justify; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify; margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify;text-indent:-.25in;
text-autospace:none; margin-right:0.05in; margin-top:0in'>2.&nbsp;&nbsp;(Example) Achieve customer
satisfaction rating of 95% based on a third party survey.</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify; margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.5in;text-align:justify;text-indent:-.25in;
text-autospace:none; margin-right:0.05in; margin-top:0in'>3.&nbsp;&nbsp;(Example) Achieve Net Sales of $30M
by the end of 2013.&nbsp; Currently it is $18M.&nbsp; This is an increase of 66% from
2010 year end results.</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify; margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify; margin-left:0in; margin-right:0.05in; margin-top:0in'>
<b>Award for strategic goals will be based on the following:
(50% of Award)</b></p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify; margin-left:0in; margin-right:0.05in; margin-top:0in'>
<b>&nbsp;</b></p>
<table class=MsoNormalTable border=1 cellspacing=0 cellpadding=0 width=590
 style='width:100%;border-collapse:collapse;border:medium none; '>
	<tr>
		<td valign=top style='border:1.0pt solid black;
  padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify; margin-left:0in; margin-right:0.05in; margin-top:0in'>Minimum</p>
		</td>
		<td valign=top style='border-right:1.0pt solid black; border-top:1.0pt solid black; border-bottom:1.0pt solid black; border-left:medium none; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify; margin-left:0in; margin-right:0.05in; margin-top:0in'>Must meet at least 80% of established goals</p>
		</td>
		<td valign=top style='border-right:1.0pt solid black; border-top:1.0pt solid black; border-bottom:1.0pt solid black; border-left:medium none; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0.05in; margin-top:0in'>12.5% of Annual Base Pay at the
  end of fiscal year</p></td>
	</tr>
	<tr>
		<td valign=top style='border-left:1.0pt solid black; border-right:1.0pt solid black; border-bottom:1.0pt solid black; border-top:medium none; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in'>Target
  &amp; Maximum</p></td>
		<td valign=top style='border-top:medium none;border-left:
  medium none;border-bottom:1.0pt solid black;border-right:1.0pt solid black;
  padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify; margin-left:0in; margin-right:0.05in; margin-top:0in'>Based on 100% achievement of established goals</p>
		</td>
		<td valign=top style='border-top:medium none;border-left:medium none;
  border-bottom:1.0pt solid black;border-right:1.0pt solid black;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0.05in; margin-top:0in'>25.0% of Annual Base Pay at the
  end of fiscal year</p></td>
	</tr>
	<tr>
		<td valign=top style='border-left:1.0pt solid black; border-right:1.0pt solid black; border-bottom:1.0pt solid black; border-top:medium none; padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in'>Maximum</p>
		</td>
		<td valign=top style='border-top:medium none;border-left:
  medium none;border-bottom:1.0pt solid black;border-right:1.0pt solid black;
  padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify; margin-left:0in; margin-right:0.05in; margin-top:0in'>Based on 150% achievement of established goals</p>
		</td>
		<td valign=top style='border-top:medium none;border-left:medium none;
  border-bottom:1.0pt solid black;border-right:1.0pt solid black;padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
		<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center; margin-left:0in; margin-right:0.05in; margin-top:0in'>37.5% of Annual Base Pay at the
  end of the fiscal year</p></td>
	</tr>
</table>
<p style='margin-bottom:.0001pt;font-family:"Times New Roman";margin-left:.25in;text-align:justify; margin-right:0.05in; margin-top:0in'>
<font size="2">If the minimum Performance Goal of
80% is not met, the amount payable is $0.00.&nbsp; If the maximum Performance Goal
is exceeded, the amount payable will not exceed the amount set forth above.&nbsp;
For performance between minimum and target Performance
Goals and between target and maximum Performance goals, the amount payable will
be determined based upon straight-line interpolation.</font></p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in' align="center">-9-</p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>
	<hr size=2 width="100%" noshade color=navy align=center></div>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<font face="Times New Roman"><br clear=all
style='page-break-before:always'></font>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.25in;text-align:justify; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify; margin-left:0in; margin-right:0.05in; margin-top:0in'>Any amount payable as a Long-Term Incentive Compensation
Award pursuant to this Participation Agreement will be determined and paid
pursuant to, and subject to, the terms and conditions set forth herein and in
the Plan.&nbsp; All terms and provisions of the Plan are incorporated herein and
made part hereof as if stated herein.&nbsp; If any provision hereof and of the Plan
shall be in conflict, the terms of the Plan shall govern.&nbsp; All capitalized
terms used herein and not defined shall have the meanings assigned to them in
the Plan.</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:.25in;text-align:justify; margin-right:0.05in; margin-top:0in'>
<b>&nbsp;</b></p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:justify; margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<table class=MsoNormalTable border=1 cellspacing=0 cellpadding=0
 style='margin-left:.2in;border-collapse:collapse;border:none' width="100%">
	<tr style='height:133.6pt'>
		<td width=584 valign=top style='width:438.2pt;border:solid windowtext 1.0pt;
  padding:0in 5.4pt 0in 5.4pt;height:133.6pt'>
		<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
		<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in'>I agree and understand these long term performance
  objectives.&nbsp; </p>
		<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
		<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
		<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
		<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
		<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
		<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
		<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in'>Signature (Key Executive)</p>
		<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
		</td>
	</tr>
	<tr style='height:26.5pt'>
		<td width=584 valign=top style='width:438.2pt;border:solid windowtext 1.0pt;
  border-top:none;padding:0in 5.4pt 0in 5.4pt;height:26.5pt'>
		<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
		<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in'>Date:</p>
		</td>
	</tr>
</table>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none; margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none; margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none; margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none; margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none; margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none; margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none; margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center;text-autospace:none; margin-left:0in; margin-right:0.05in; margin-top:0in'>-10-</p>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"; margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";text-align:center'>
	<hr size=2 width="100%" noshade color=navy align=center></div>
<p style='margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";margin-left:0in; margin-right:0.05in; margin-top:0in'>&nbsp;</p>
<p style='margin-top:12.0pt;margin-right:0.05in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman"'>&nbsp;</p>

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