<SEC-DOCUMENT>0001534424-16-001107.txt : 20161017
<SEC-HEADER>0001534424-16-001107.hdr.sgml : 20161017
<ACCEPTANCE-DATETIME>20161017080031
ACCESSION NUMBER:		0001534424-16-001107
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20161129
FILED AS OF DATE:		20161017
DATE AS OF CHANGE:		20161017
EFFECTIVENESS DATE:		20161017

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PRO DEX INC
		CENTRAL INDEX KEY:			0000788920
		STANDARD INDUSTRIAL CLASSIFICATION:	SURGICAL & MEDICAL INSTRUMENTS & APPARATUS [3841]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			CA

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-14942
		FILM NUMBER:		161938015

	BUSINESS ADDRESS:	
		STREET 1:		2361 MCGAW AVENUE
		CITY:			IRVINE
		STATE:			CA
		ZIP:			92614
		BUSINESS PHONE:		949-769-3231

	MAIL ADDRESS:	
		STREET 1:		2361 MCGAW AVENUE
		CITY:			IRVINE
		STATE:			CA
		ZIP:			92614

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PRO-DEX, INC.
		DATE OF NAME CHANGE:	20151110

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CONTEXT CAPITAL FUNDS
		DATE OF NAME CHANGE:	20151104

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PRO DEX INC
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>f16-0867.htm
<DESCRIPTION>DEF 14A FILING
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="font: 4pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="margin-top: 0; text-align: center; margin-bottom: 0"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 10pt">&nbsp;<IMG SRC="prodex.jpg" ALT="(LOGO)"></FONT></P>

<P STYLE="margin: 0"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 10pt">To
Our Shareholders:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 10pt">Fiscal
2016 was a significant year for Pro-Dex, highlighted by our return to profitability driven by sales growth of over 50%. This marks
the first profitable year for the company since fiscal 2011.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 10pt">We
will continue to focus on our core Medical Device business in fiscal 2017, driven by our $18M backlog. We are pleased to have
recently signed a two-year contract worth $24M in sales with one of our large medical device customers. Our hand-held, battery
powered devices include proprietary sealing solutions and are autoclavable for extended use in various surgical applications.
An additional major development project is scheduled to be completed this fiscal year leading to the launch of another new product
into manufacturing. Our company is excited about our recently patented technologies relating to adaptive torque-limiting which controls
both the speed and cessation of driving medical screws. We appreciate the benefits this technology provides our customers and
end users, as well as the very positive reception these products have experienced in the marketplace. We are investing in appropriate
levels of research to expand our technology advantages.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 10pt">Pro-Dex
will also continue to look for smart investments to supplement our core business. While we will not lose sight of our core business,
we remain attentive to opportunities to increase shareholder value.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 10pt">We
enjoy a lean and collaborative environment, led by an active and cohesive management team. The organizational chemistry here is
the best in my experience with the company, which we believe provides a solid foundation for further growth and success.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 10pt">I
appreciate any comments or question that you might have. You can reach the Board or myself at (949) 769-3200 or email us at <U>investor.relations@pro-dex.com</U>.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 10pt">Sincerely,</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 10pt"><U>/s/&nbsp;Rick Van Kirk&nbsp;&nbsp;&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>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 10pt">Rick
Van Kirk&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 10pt">President
&amp; Chief Executive Officer</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 10pt">&nbsp;</FONT></P>

<!-- Field: Page; Sequence: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 10pt">&nbsp;</FONT></P>


<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 100%; border-bottom: Black 2px solid"><FONT STYLE="font-size: 1pt">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SCHEDULE 14A INFORMATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Proxy Statement Pursuant to Section
14(a) of the</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Securities Exchange Act of 1934</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Filed by the Registrant&nbsp;&nbsp; <FONT STYLE="font-family: Times New Roman, Times, Serif">&#9746;
</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Filed
by a Party other than the Registrant &nbsp;&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif">&#9744;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Check the appropriate box:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; padding-right: 0.8pt; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9744;</FONT></TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt; font-size: 10pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 96%; padding-right: 0.8pt; font-size: 10pt"><FONT STYLE="font-size: 10pt">Preliminary Proxy Statement</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9744;</FONT></TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 96%; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt"><B>Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))</B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9746;
</FONT></TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 96%; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">Definitive Proxy Statement</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9744;</FONT></TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 96%; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">Definitive Additional Materials</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9744;</FONT></TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 96%; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">Soliciting Material Pursuant to 240.14a-11(c) or 240.14a-12</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 24pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PRO-DEX, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Name of Registrant as Specified In
Its Charter)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Name of Person(s) Filing Proxy Statement
if other than the Registrant)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Payment of Filing Fee (Check the appropriate box):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9746;
</FONT></TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 96%; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">No fee required</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9744;</FONT></TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 96%; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR>
    <TD STYLE="width: 4%; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 4%; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">1.</FONT></TD>
    <TD STYLE="vertical-align: top; width: 92%; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">Title of each class of securities to which transaction applies:</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR>
    <TD STYLE="width: 4%; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 4%; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">2.</FONT></TD>
    <TD STYLE="vertical-align: top; width: 92%; padding-right: 0.8pt; border-top: Black 2px solid"><FONT STYLE="font-size: 10pt">Aggregate number of securities to which transaction applies:</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR>
    <TD STYLE="width: 4%; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 4%; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">3.</FONT></TD>
    <TD STYLE="vertical-align: top; width: 92%; padding-right: 0.8pt; border-top: Black 2px solid"><FONT STYLE="font-size: 10pt">Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR>
    <TD STYLE="width: 4%; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 4%; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">4.</FONT></TD>
    <TD STYLE="vertical-align: top; width: 92%; padding-right: 0.8pt; border-top: Black 2px solid"><FONT STYLE="font-size: 10pt">Proposed maximum aggregate value of transaction:</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR>
    <TD STYLE="width: 4%; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 4%; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">5.</FONT></TD>
    <TD STYLE="vertical-align: top; width: 92%; padding-right: 0.8pt; border-top: Black 2px solid"><FONT STYLE="font-size: 10pt">Total fee paid:</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; border-bottom: Black 2px solid">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9744;</FONT></TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 96%; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">Fees paid previously with preliminary materials.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; padding-right: 0.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9744;</FONT></TD>
    <TD STYLE="width: 1%; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 96%; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR>
    <TD STYLE="width: 4%; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 4%; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">1.</FONT></TD>
    <TD STYLE="vertical-align: top; width: 92%; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">Amount Previously Paid:</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR>
    <TD STYLE="width: 4%; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 4%; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">2.</FONT></TD>
    <TD STYLE="vertical-align: top; width: 92%; padding-right: 0.8pt; border-top: Black 2px solid"><FONT STYLE="font-size: 10pt">Form, Schedule or Registration Statement No.:</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR>
    <TD STYLE="width: 4%; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 4%; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">3.</FONT></TD>
    <TD STYLE="vertical-align: top; width: 92%; padding-right: 0.8pt; border-top: Black 2px solid"><FONT STYLE="font-size: 10pt">Filing Party:</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR>
    <TD STYLE="width: 4%; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 4%; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">4.</FONT></TD>
    <TD STYLE="vertical-align: top; width: 92%; padding-right: 0.8pt; border-top: Black 2px solid"><FONT STYLE="font-size: 10pt">Date Filed:</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-bottom: Black 2px solid; padding-right: 0.8pt">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 100%; border-bottom: Black 2px solid"><FONT STYLE="font-size: 1pt">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<!-- Field: Page; Sequence: 1; Options: NewSection -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%; text-align: center">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: normal 8pt Arial, Helvetica, Sans-Serif"><TR><TD STYLE="text-align: left; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 4pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><IMG SRC="prodex.jpg" ALT="(Pro Dex logo)">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">2361 McGaw Avenue</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Irvine, California 92614</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<!-- Field: Rule-Page --><DIV ALIGN="CENTER" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 2px solid; width: 20%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTICE OF ANNUAL MEETING OF SHAREHOLDERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>TO BE HELD <FONT STYLE="text-transform: uppercase">November
29</FONT>, 2016</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To the Shareholders of Pro-Dex, Inc.:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">The Annual Meeting of
Shareholders (&ldquo;Annual Meeting&rdquo;) of Pro-Dex, Inc. (&ldquo;Pro-Dex&rdquo;, the &ldquo;Company&rdquo;, &ldquo;we&rdquo;,
&ldquo;us&rdquo; or &ldquo;our&rdquo;) will be held at our headquarters, 2361 McGaw Avenue, Irvine, California, on November 29,
2016, at 9:00 a.m. Pacific Standard Time, for the following purposes:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">1.</TD><TD STYLE="text-align: justify; padding-right: 0.8pt">To elect five persons to serve as our directors for a term of one year each.
The nominees for election to our Board of Directors are named in the attached Proxy Statement, which is part of this Notice.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">2.</TD><TD STYLE="text-align: justify; padding-right: 0.8pt">To ratify the appointment of Moss Adams, LLP as our independent registered
public accounting firm for the fiscal year ending June 30, 2017.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">3.</TD><TD STYLE="text-align: justify; padding-right: 0.8pt">To ratify and approve the 2016 Equity Incentive Plan.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">4.</TD><TD STYLE="text-align: justify; padding-right: 0.8pt">To hold an advisory vote to approve the compensation of our Named Executive
Officers.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">5.</TD><TD STYLE="text-align: justify; padding-right: 0.8pt">To hold an advisory vote to approve the increase in compensation of our independent
directors.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">6.</TD><TD STYLE="text-align: justify; padding-right: 0.8pt">To transact such other business as may properly come before the Annual Meeting
or any adjournments or postponements thereof.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">Only shareholders of
record at the close of business on October 3, 2016, are entitled to notice of and to vote at the Annual Meeting and at any adjournments
or postponements of the Annual Meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt">All shareholders are
cordially invited to attend the Annual Meeting in person. Whether or not you plan to attend the Annual Meeting, your vote is important.
In an effort to facilitate the voting process, we are pleased to avail ourselves of Securities and Exchange Commission, or SEC,
rules that allow proxy materials to be furnished to shareholders on the Internet. You can vote by proxy over the Internet by following
the instructions provided in the Notice of Internet Availability of Proxy Materials that was mailed to you on or about October
17, 2016, or, if you request printed copies of the proxy materials by mail, you can also vote by mail or by telephone. Your promptness
in voting by proxy will assist in its expeditious and orderly processing and will assure that you are represented at the Annual
Meeting. If you vote by proxy, you may nevertheless attend the Annual Meeting and vote your shares in person.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt"><B>TO ENSURE YOUR REPRESENTATION
AT THE ANNUAL MEETING, YOU ARE URGED TO READ THIS PROXY STATEMENT AND SUBMIT YOUR PROXY OR VOTING INSTRUCTIONS AS SOON AS POSSIBLE
BY FOLLOWING THE INSTRUCTIONS IN THE NOTICE OF INTERNET AVAILABILITY OF PROXY MATERIALS, WHICH WAS MAILED TO YOU ON OR ABOUT OCTOBER
17, 2016, OR, IF YOU REQUEST PRINTED COPIES OF THE PROXY MATERIALS BY MAIL, YOU CAN ALSO VOTE BY MAIL OR BY TELEPHONE.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt"><B>OUR BOARD OF DIRECTORS
RECOMMENDS: A VOTE &ldquo;FOR&rdquo; EACH OF THE FIVE DIRECTOR NOMINEES NAMED IN THE PROXY STATEMENT; AND A VOTE &ldquo;FOR&rdquo;
EACH OF PROPOSALS 2 THROUGH 5.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 311pt; text-indent: -11.5pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 70%">&nbsp;</TD>
    <TD STYLE="width: 30%">By Order of the Board of Directors,</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>PRO-DEX, INC.</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>/s/ Alisha K. Charlton</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>Corporate Secretary</TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>


<!-- Field: Page; Sequence: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%; text-align: center">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: normal 8pt Arial, Helvetica, Sans-Serif"><TR><TD STYLE="text-align: left; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 4pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.7pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><IMG SRC="prodex.jpg" ALT="(Pro Dex logo)">&nbsp;</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.7pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">2361 McGaw Avenue</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Irvine, California 92614</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<!-- Field: Rule-Page --><DIV ALIGN="CENTER" STYLE="margin-top: 0pt; margin-bottom: 0pt"><DIV STYLE="font-size: 1pt; border-top: Black 2px solid; width: 20%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ANNUAL MEETING OF SHAREHOLDERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>TO BE HELD NOVEMBER 29, 2016</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>


<!-- Field: Rule-Page --><DIV ALIGN="CENTER" STYLE="margin-top: 0pt; margin-bottom: 0pt"><DIV STYLE="font-size: 1pt; border-top: Black 2px solid; width: 20%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PROXY STATEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>


<!-- Field: Rule-Page --><DIV ALIGN="CENTER" STYLE="margin-top: 0pt; margin-bottom: 0pt"><DIV STYLE="font-size: 1pt; border-top: Black 2px solid; width: 20%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SOLICITATION OF PROXIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt">The Board of Directors
(&ldquo;Board&rdquo;) of Pro-Dex, Inc. (&ldquo;Pro-Dex&rdquo;, the &ldquo;Company&rdquo;, &ldquo;we&rdquo;, &ldquo;us&rdquo; or
&ldquo;our&rdquo;) has made these materials available to you on the Internet, or, upon your request, has delivered printed versions
of these materials to you by mail, in connection with the Board&rsquo;s solicitation of proxies for use at our Annual Meeting of
Shareholders (&ldquo;Annual Meeting&rdquo;) to be held at Pro-Dex&rsquo;s headquarters, 2361 McGaw Avenue, Irvine, California,
on Tuesday, November 29, 2016, at 9:00 a.m. Pacific Standard Time, and at any and all adjournments or postponements thereof. Shareholders
are requested to promptly vote by proxy over the Internet by following the instructions provided in the Notice of Internet Availability
of Proxy Materials, which was mailed to you on or about October 17, 2016. If you request printed copies of the proxy materials
by mail, you can also vote by mail or by telephone. All shares represented by each properly submitted and unrevoked proxy received
on the Internet or by telephone prior to 11:59 p.m. Eastern Standard Time on Monday, November 28, 2016, or by proxy card prior
to or at the Annual Meeting, will be voted in the manner specified therein, and if no direction is indicated (except in the case
of broker non-votes), &ldquo;for&rdquo; each of the five director nominees named under Proposal No. 1; and &ldquo;for&rdquo; each
of Proposal Nos. 2 through 5.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt">Any shareholder has
the power to revoke his or her proxy at any time before it is voted. A proxy may be revoked by delivering a written notice of revocation
to our Secretary prior to or at the Annual Meeting, by voting again on the Internet or by telephone (only your latest Internet
or telephone proxy submitted prior to 11:59 p.m. Eastern Standard Time on Monday, November 28, 2016, will be counted), by submitting
prior to or at the Annual Meeting a later dated proxy card executed by the person executing the prior proxy, or by attendance at
the Annual Meeting and voting in person by the person submitting the prior proxy.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt">Any shareholder who
owns shares in street name and would like to vote in person at the Annual Meeting should inform his or her broker of such plans
and request a legal proxy from the broker. Such shareholders will need to bring the legal proxy with them to the Annual Meeting
and valid picture identification, such as a driver&rsquo;s license or passport, in addition to documentation indicating share ownership.
Such shareholders who do not receive the legal proxy in time should bring with them to the Annual Meeting their most recent brokerage
account statement showing that they owned Pro-Dex stock as of the record date. Upon submission of proper identification and ownership
documentation, we will be able to admit the shareholder to the Annual Meeting; however, such shareholder will not be able to vote
his or her shares at the Annual Meeting without a legal proxy. Shareholders are advised that if they own shares in street name
and request a legal proxy, any previously executed proxy will be revoked, and such shareholder&rsquo;s vote will not be counted
unless he or she appears at the Annual Meeting and votes in person.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt">Our Board does not
presently intend to bring any business before the Annual Meeting other than the proposals referred to in this proxy statement and
specified in the accompanying Notice of Annual Meeting. So far as is known to our Board, no other matters are to be brought before
the Annual Meeting. However, if any other matters are presented properly for action at the Annual Meeting or at any adjournments
or postponements thereof, it is intended that the proxies will be voted with respect thereto by the proxy holders in accordance
with the instructions and at the discretion of our Board or a properly authorized committee thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt"><B>This proxy statement,
the accompanying shareholder letter, the accompanying proxy card and our Annual Report on Form 10-K are being made available to
our shareholders on the Internet at www.proxyvote.com through the notice and access process on or about October 17, 2016.</B> We
will bear the cost</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<!-- Field: Page; Sequence: 3; Options: NewSection; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%; text-align: center; font: normal 10pt Times New Roman, Times, Serif">-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->1<!-- Field: /Sequence -->-&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: normal 8pt Arial, Helvetica, Sans-Serif"><TR><TD STYLE="text-align: left; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">of soliciting proxies pursuant to this proxy statement. The solicitation will be made through the Internet and
expenses will include reimbursement paid to brokerage firms and others for their expenses in forwarding solicitation material regarding
the Annual Meeting to beneficial owners of our common stock, no par value per share (&ldquo;Common Stock&rdquo;). Further solicitation
of proxies may be made by mail upon request, and by telephone or oral communications with some shareholders. Our regular employees,
who will not receive additional compensation for the solicitation, or a compensated proxy solicitation firm, will make such further
solicitations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>OUTSTANDING SHARES AND VOTING RIGHTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">Only holders of record
of the 4,063,837 shares of our Common Stock outstanding at the close of business on October 3, 2016, are entitled to notice of
and to vote at the Annual Meeting or any adjournment or postponement thereof. Under Colorado law, our Articles of Incorporation
and our Bylaws, the holders of a majority of the total shares entitled to vote at the Annual Meeting, as of the record date, represented
in person or by proxy, will constitute a quorum for the transaction of business at the Annual Meeting. If a quorum is not present,
the Annual Meeting may be postponed or adjourned to allow additional time for obtaining additional proxies or votes. At any subsequent
reconvening of the Annual Meeting, all proxies will be voted in the same manner as the proxies would have been voted at the original
convening of the Annual Meeting, except for any proxies that have been effectively revoked or withdrawn prior to the reconvening
of the Annual Meeting. Shares of our Common Stock represented in person or by proxy (regardless of whether the proxy has authority
to vote on all matters), as well as abstentions and broker non-votes, will be counted for purposes of determining whether a quorum
is present at the Annual Meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt">An &ldquo;abstention&rdquo;
is the voluntary act of not voting by a shareholder who is represented in person or by proxy at a meeting and entitled to vote.
&ldquo;Broker non-votes&rdquo; are shares of voting stock held in record name by brokers and nominees concerning which: (i) the
broker or nominee does not have discretionary voting power under applicable rules or the instruments under which it serves in such
capacity and instructions have not been received from the beneficial owners or persons entitled to vote; or (ii) the record holder
has indicated on the proxy or has executed a proxy and otherwise notified us that it does not have authority to vote such shares
on that matter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">For Proposal No. 1 (the
election of directors), assuming that a quorum is present, the five nominees for director receiving the highest number of affirmative
votes will be elected; votes withheld and broker non-votes have no practical effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">For each of Proposal
No. 2 (to ratify the appointment of Moss Adams, LLP as our independent registered public accounting firm for the fiscal year ending
June 30, 2017), Proposal No. 3 (to approve the 2016 Equity Incentive Plan), Proposal No. 4 (advisory vote to approve the compensation
of our Named Executive Officers) and Proposal No. 5 (advisory vote to approve the increase in compensation of our independent directors),
assuming that a quorum is present, the matter will be approved if the votes cast in favor of the matter exceed the votes cast opposing
the matter. In such matters, abstentions and broker non-votes will not be included in the vote totals and, therefore, will have
no effect on the vote.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">Each shareholder will
be entitled to one vote, in person or by proxy, for each share of Common Stock held of record on the record date. Votes cast at
the Annual Meeting will be tabulated by the person or persons appointed by us to act as inspectors of election for the Annual Meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Recommendations of our Board</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">Our Board recommends
that our shareholders vote &ldquo;for&rdquo; each of the five director nominees named under Proposal No. 1; and &ldquo;for&rdquo;
each of Proposal Nos. 2 through 5.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt"><B>THE PROPOSALS TO
BE VOTED UPON AT THE ANNUAL MEETING ARE DISCUSSED IN DETAIL IN THIS PROXY STATEMENT. YOU ARE STRONGLY URGED TO READ AND CONSIDER
CAREFULLY THIS PROXY STATEMENT IN ITS ENTIRETY.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>


<!-- Field: Page; Sequence: 4; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%; text-align: center; font: normal 10pt Times New Roman, Times, Serif">-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->2<!-- Field: /Sequence -->-&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: normal 8pt Arial, Helvetica, Sans-Serif"><TR><TD STYLE="text-align: left; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
OWNERS AND MANAGEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.2in">The following table
sets forth information concerning the beneficial ownership of the Company&rsquo;s Common Stock as of October 3, 2016 by:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.2in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.2in"></TD><TD STYLE="width: 0.3in; text-align: left"><B><FONT STYLE="font-family: Symbol">&middot;</FONT></B></TD><TD>each member of the Board;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.2in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.2in"></TD><TD STYLE="width: 0.3in"><B><FONT STYLE="font-family: Symbol">&middot;</FONT></B></TD><TD>each of the Company&rsquo;s Named Executive Officers listed in the &ldquo;Summary Compensation Table&rdquo; included in the
&ldquo;Executive Compensation&rdquo; section of this proxy statement;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.2in"></TD><TD STYLE="width: 0.3in; text-align: left"><FONT STYLE="font-family: Symbol"><B>&middot;</B></FONT></TD><TD>all of the Company&rsquo;s directors and Named Executive
Officers as a group; and</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.2in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.2in"></TD><TD STYLE="width: 0.3in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>each person or entity known to the Company that beneficially owns more than five percent of the Company&rsquo;s Common Stock.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.2in">Beneficial ownership
is determined in accordance with the rules of the SEC. Unless otherwise indicated below, the address of each beneficial owner is
c/o Pro-Dex, Inc., 2361 McGaw Avenue, Irvine, California, 92614. Unless otherwise indicated below, the Company believes that each
of the persons listed in the table (subject to applicable community property laws) has the sole power to vote and to dispose of
the shares listed opposite the shareholder&rsquo;s name.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.2in">The percentages of
Common Stock beneficially owned are based on 4,063,837 shares of Common Stock outstanding at October 3, 2016.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.2in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 74%; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 12%; text-align: center"><FONT STYLE="font-size: 8pt"><B>Number of</B></FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: center"><FONT STYLE="font-size: 8pt"><B>Percent of</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 8pt"><B>Shares of Common</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 8pt"><B>Common Stock</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 8pt"><B>Stock Beneficially</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 8pt"><B>Beneficially</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 2px solid; text-align: left"><FONT STYLE="font-size: 8pt"><B>&#9;Name and Address of
    Beneficial Owner</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>Owned</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>Owned</B><SUP>(1)</SUP></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 5.05pt; padding-left: 0.25in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-size: 10pt">Nicholas
J. Swenson, AO Partners I, L.P.; and AO Partners, LLC<SUP>(2)<BR>
</SUP>5000 West 36<SUP>th</SUP> Street, Suite 130 <BR>
Minneapolis, MN 55416&#9;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; padding-right: 5pt"><FONT STYLE="font-size: 10pt">&#9;&#9;1,133,472</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#9;27.9%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-right: 5.05pt; padding-left: 0.25in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-size: 10pt">Raymond
E. Cabillot; Farnam Street Partners, L.P.; <BR>
Farnam Street Capital, Inc.; and Peter O. Haeg<SUP>(3)<BR>
</SUP>3033 Excelsior Blvd., Suite 320<BR>
Minneapolis, MN 55416&#9;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; padding-right: 5pt"><FONT STYLE="font-size: 10pt">&#9;&#9;565,923</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#9;13.9%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 5.05pt; padding-left: 5.05pt; text-align: justify; text-indent: -5.05pt"><FONT STYLE="font-size: 10pt">Richard L. Van Kirk<SUP>(4)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; padding-right: 5pt"><FONT STYLE="font-size: 10pt">&#9;&#9;70,226</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&#9;1.7%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-right: 5.05pt; padding-left: 5.05pt; text-align: justify; text-indent: -5.05pt"><FONT STYLE="font-size: 10pt">David C. Hovda<SUP>(4)</SUP>&#9;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; padding-right: 5pt"><FONT STYLE="font-size: 10pt">&#9;&#9;15,000</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">*&nbsp;&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 5.05pt; padding-left: 5.05pt; text-align: justify; text-indent: -5.05pt"><FONT STYLE="font-size: 10pt">William J. Farrell III&#9;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; padding-right: 5pt"><FONT STYLE="font-size: 10pt">6,200</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">*&nbsp;&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-right: 5.05pt; padding-left: 5.05pt; text-align: justify; text-indent: -5.05pt"><FONT STYLE="font-size: 10pt">Alisha K. Charlton&#9;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; padding-right: 5pt"><FONT STYLE="font-size: 10pt">&#9;&#9;1,579</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">*&nbsp;&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 5.05pt; padding-left: 5.05pt; text-align: justify; text-indent: -5.05pt"><FONT STYLE="font-size: 10pt">All Directors, Director Nominees and Named Executive Officers as a group (6 persons)<SUP>(4)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right; padding-right: 5pt"><FONT STYLE="font-size: 10pt">&#9;&nbsp;1,790,400</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">43.5%</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 0pt; margin-bottom: 0pt"><DIV STYLE="font-size: 1pt; border-top: Black 2px solid; width: 20%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.3in; text-align: left">*</TD><TD><FONT STYLE="font-size: 10pt">Indicates less than 1 percent
of the outstanding shares of common stock.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.3in; text-indent: 0in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.3in"><SUP>(1)</SUP></TD><TD STYLE="text-align: justify">Applicable percentage ownership is based on 4,063,837 shares of Common Stock outstanding as of
October 3, 2016. Any securities not outstanding but subject to options exercisable as of October 3, 2016, or exercisable within
60 days after such date, are deemed to be outstanding for the purpose of computing the percentage of outstanding Common Stock beneficially
owned by the person holding such options, but are not deemed to be outstanding for the purpose of computing the percentage of Common
Stock beneficially owned by any other person.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.3in"><SUP>(2)</SUP></TD><TD STYLE="text-align: justify">AO Partners, LLC is the General Partner of AO Partners I, L.P. Mr. Swenson is the Managing Member
of AO Partners, LLC, and, in such capacity, has the power to direct the affairs of AO Partners, LLC, including the voting and disposition
of shares of our Common Stock held by AO Partners I, L.P. As such, AO Partners I, L.P., AO Partners, LLC and Mr. Swenson may be
deemed to share voting and dispositive power with regard to the 1,037,984 shares of our Common Stock held by AO Partners I, L.P.
The remaining 95,488 shares are owned by Nicholas J. Swenson directly.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

<!-- Field: Page; Sequence: 5; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%; text-align: center; font: normal 10pt Times New Roman, Times, Serif">-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->3<!-- Field: /Sequence -->-&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: normal 8pt Arial, Helvetica, Sans-Serif"><TR><TD STYLE="text-align: left; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.3in"><SUP>(3)</SUP></TD><TD STYLE="text-align: justify; padding-right: 0.8pt">Farnam Street Partners, L.P., Farnam Street Capital, Inc., Raymond E. Cabillot,
and Peter O. Haeg claim shared voting power and shared dispositive power of 565,923 shares of our Common Stock held by Farnam Street
Partners, L.P.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><SUP>(4)</SUP></TD><TD STYLE="text-align: justify; padding-right: 0.8pt">Includes shares of Common Stock issuable upon the exercise of options that
were exercisable as of October 3, 2016, or exercisable within 60 days after October 3, 2016, as follows: Mr. Van Kirk, 53,334 shares;
Mr. Hovda, 7,500 shares; and all directors, director nominees and Named Executive Officers as a group, 60,834 shares.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Proposal No. 1</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ELECTION OF DIRECTORS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Current Board Structure and Director Terms</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">Our Board is currently
composed of five members. All directors or their successor nominees stand for election each year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">Certain information
with respect to each of the nominees who will be presented at the Annual Meeting by our Board for election as a director is set
forth below. Although it is anticipated that each nominee will be available to serve as a director, should a nominee become unavailable
to serve, proxies will be voted for such other person as may be designated by our Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">Unless the authority
to vote for directors has been withheld in the proxy, the person named in the accompanying proxy intends to vote at the Annual
Meeting for the election of each of the nominees presented below. In the election of directors, assuming a quorum is present, the
five nominees for director receiving the highest number of votes cast at the Annual Meeting will be elected as our directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DIRECTORS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">Set forth below is certain
information with respect to our directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: bottom; width: 22%;  text-align: center"><FONT STYLE="font-size: 10pt"><U>Name</U></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 2%;  text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 5%; text-align: center"><FONT STYLE="font-size: 10pt"><U>Age</U></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 2%;  text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 31%;  text-align: center"><FONT STYLE="font-size: 10pt"><U>Position With Company</U></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 2%;  text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 7%;  text-align: center"><FONT STYLE="font-size: 10pt"><U>Audit</U></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 2%;  text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 13%;  text-align: center"><FONT STYLE="font-size: 10pt"><U>Compensation</U></FONT></TD>
    <TD STYLE="vertical-align: top; width: 2%;  text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 12%;  text-align: center"><FONT STYLE="font-size: 10pt"><U>Nominating and Governance</U></FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">Raymond E. Cabillot</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">53</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Director</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">C</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">William J. Farrell III</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">43</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Director</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">David C. Hovda</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">54</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Director</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">C</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">Richard L. Van Kirk</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">56</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Director, Chief Executive Officer, and President</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">Nicholas J. Swenson</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">48</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Director, Chairman of the Board</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">C</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">X</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 0pt; margin-bottom: 0pt"><DIV STYLE="font-size: 1pt; border-top: Black 2px solid; width: 20%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%; padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">(X)</FONT></TD>
    <TD STYLE="width: 97%; padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-size: 10pt">Member of the Committee</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">(C)</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: justify"><FONT STYLE="font-size: 10pt">Chairman of the Committee</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">Messrs. Cabillot, Farrell,
Hovda and Swenson currently each qualify as an &ldquo;independent director&rdquo; as such term is defined in Rule 5605(a)(2) of
the Nasdaq Listing Rules and we expect that each will continue to qualify as an &ldquo;independent director&rdquo; if elected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">Our Board is of the
opinion that the election to our Board of the director nominees identified herein, each of whom has consented to serve if elected,
would be in our shareholders&rsquo; best interests.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>


<!-- Field: Page; Sequence: 6; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%; text-align: center; font: normal 10pt Times New Roman, Times, Serif">-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->4<!-- Field: /Sequence -->-&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: normal 8pt Arial, Helvetica, Sans-Serif"><TR><TD STYLE="text-align: left; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>OUR BOARD RECOMMENDS THAT YOU VOTE &ldquo;FOR&rdquo;
THE ELECTION OF THE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOMINEES NAMED BELOW.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt">Raymond E. Cabillot
(53), current director and nominee, has, from January 1998 until the present, served as Chief Executive Officer and a director
of Farnam Street Capital, Inc., the General Partner of Farnam Street Partners L.P., a private investment partnership located in
Minneapolis, MN. He was a Senior Research Analyst at Piper Jaffray, Inc. from 1990 to 1998. Prior to that, he worked for Prudential
Capital Corporation from 1987 to 1990 as an Associate Investment Manager and as an Investment Manager. Mr. Cabillot serves as a
director of several private companies. He was a director of O.I. Corporation, a Nasdaq listed company (OICO), from 2006 to 2010.
He served as Chairman of the Board of O.I. Corporation from 2007 through 2010 and during 2010 served as Co-Chairman of the Board
of O.I. Corporation. Mr. Cabillot has a B.A. degree with a double major in Economics and Chemistry from Saint Olaf College and
an M.B.A. from the University of Minnesota. Mr. Cabillot has been a director of ours since January 2013.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 22.5pt">Mr. Cabillot brings the following experience,
qualifications, attributes and skills to our Board:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 22.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.35in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>More than 25 years of experience as a financial analyst and investment manager;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.35in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>Four years of prior public company board experience, including three years as Chairman and one year as Co-Chairman; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.35in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>Independent of our management.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23.05pt">William J. Farrell
III (43), current director and nominee, is co-founder and Chief Operating Officer, since January 2013, of FreshRealm, LLC, a developer
of new technologies to streamline fresh food distribution. In addition, from January 2011 until the present, he has served as Chief
Executive Officer of Viszy Inc., a start-up company developing software and services for the consumer market. Mr. Farrell is also
Chief Executive Officer of B &#333; biam, LLC, a company that turns youth art into apparel and other products, which it merchandises
through its retail store and wholesale channels. From April 1998 to January 2011, Mr. Farrell held various senior management roles
at Medtronic, Inc. (NYSE: MDT), a multi-national medical technology company. His engineering career began with eight years in production
support, process development and operations. He then worked 10 years in product development for Medtronic, during which time he
led management teams in program, product and process development. At the end of his tenure with Medtronic, he was Senior Director
of Product Development and led corporate-wide initiatives to improve design, reliability and manufacturability practices. Mr. Farrell
has a B.S. degree in Mechanical Engineering from the University of Minnesota (1996). Mr. Farrell has been a director of ours since
January 2013.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23.05pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23.05pt">Mr. Farrell brings
the following experience, qualifications, attributes and skills to our Board:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23.05pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.35in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Current senior-level management, operating and board experience;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.35in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">More than 12 years of experience in engineering and management roles in the medical device industry,
our primary target market; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.35in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Independent of our management.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23.05pt">David C. Hovda (54),
current director and nominee, has served as President, Chief Executive Officer and a member of the Board of Directors of Simplify
Medical, Inc., a privately held medical device company that has developed a cervical artificial disc replacement optimized for
MRI imaging, since 2013. Prior to his tenure with Simplify Medical, he was President, Chief Executive Officer and a member of the
Board of Directors of SpinalMotion, Inc., a privately held medical device company that designed, developed and marketed artificial
discs for use in the spine, from 2004 to 2013. Prior to joining Spinal Motion, he held leadership positions with Arthrocare, Inc.
(Nasdaq: ARTC), a developer and manufacturer of surgical devices, instruments, and implants focused on enhancing surgical techniques
and patient outcomes, serving as the Vice President/General Manager of its Spine Division from 1999 to 2004, and as the Managing
Director of its ENT Division from 1997 to 1999. From 1992 to 1997, Mr. Hovda served in financial analysis and product management
positions with Medtronic, Inc. (NYSE: MDT), a multi-national medical technology company, which culminated in his service as the
European Business Manager of its Upper Airway Venture from 1995 to 1997. He holds more than 40 patents related to radio frequency</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23.05pt">&nbsp;</P>

<!-- Field: Page; Sequence: 7; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%; text-align: center; font: normal 10pt Times New Roman, Times, Serif">-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->5<!-- Field: /Sequence -->-&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: normal 8pt Arial, Helvetica, Sans-Serif"><TR><TD STYLE="text-align: left; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">ablation technology, specific clinical applications, and artificial disc replacement designs and implantation methods. Mr. Hovda
served for five years with the United States Navy, achieving the rank of Lieutenant. He received a Bachelor of Science degree in
Civil Engineering from Northwestern University and an M.B.A. from the Harvard Graduate School of Business Administration. Mr. Hovda
has been a director of ours since January 2013.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23.05pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">Mr. Hovda brings the
following experience, qualifications, attributes and skills to our Board:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.35in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>Current senior-level management, operating and board experience based on more than 20 years of participation in the medical
device industry, our primary target market, twelve years of which are specifically with medical devices to treat disorders of the
spine, a sector within the medical device industry that we believe represents potential for future revenue growth;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.35in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>Core management and leadership skills gained through experience overseeing and managing operations at the manager and chief
executive officer levels, including experience in medical device intellectual property, product development, clinical testing and
marketing;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.35in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>Experience in financial analysis, including operational restructuring, acquisition opportunities, raising capital, budgeting
and forecasting, and market entry feasibility; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.35in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>Independent of our management.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">Richard L. Van Kirk
(56), has served as our Chief Executive Officer and President since January 2015 in addition to his position as Chief Operating
Officer which he has held since April, 2013. Mr. Van Kirk joined the Company as Director of Manufacturing in 2006, and was subsequently
promoted to Vice President of Operations in 2007. Prior to joining the Company, Mr. Van Kirk served as Manufacturing Manager and
Manager of Product Development for the ChargeSource division of Comarco, Inc., a provider of power and charging functionality for
popular electronic devices and wireless accessories, and as General Manager at Dynacast, a leader in precision die casting. Mr.
Van Kirk holds a BA in Business Administration from California State University, Fullerton and an MBA from Claremont Graduate School.
Mr. Van Kirk has been a director of ours since January 2015.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">Mr. Van Kirk brings
the following experience, qualifications, attributes and skills to our Board:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.35in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Current senior-level management experience as our Chief Executive Officer; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.35in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Over 15 years of senior-level management in the areas of manufacturing, operations, supply chain,
distribution and logistics including nearly 10 years of experience in our operations management.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">Nicholas J. Swenson
(48), current director and nominee, is an executive, investor and research analyst. He has served as the managing partner of AO
Partners, LLC since January 2012. He has also served as President and Chief Executive Officer of Air T, Inc. (AIRT), a Nasdaq listed
company, since October 2013, as Chairman of the Board since August 2013 and as a member of the Board of Directors since August
2012. Mr. Swenson serves as a director of several private companies as well. Also, since March 2009, Mr. Swenson has been the Portfolio
Manager of Groveland Capital, LLC. Prior to forming Groveland Capital, Mr. Swenson was a Portfolio Manager and Partner at Whitebox
Advisors, LLC, a multi-strategy hedge fund, from 2001 to 2009. From 1999 to 2001 he was a research analyst at Varde Partners, LLC,
a partnership that specializes in distressed debt investing. He was an Associate in Corporate Finance at Piper Jaffray, Inc. from
1996 to 1999. Mr. Swenson has a B.A. degree in History from Middlebury College (1991) and an M.B.A. from the University of Chicago
(1996). Mr. Swenson has been a director of ours since January 2013.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">Mr. Swenson brings
the following experience, qualifications, attributes and skills to our Board:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.35in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">20 years of experience as a financial analyst and investment manager;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.35in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Public company senior-level management, operating and board experience; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.35in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Independent of our management</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

<!-- Field: Page; Sequence: 8; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%; text-align: center; font: normal 10pt Times New Roman, Times, Serif">-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->6<!-- Field: /Sequence -->-&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: normal 8pt Arial, Helvetica, Sans-Serif"><TR><TD STYLE="text-align: left; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>BUSINESS EXPERIENCE OF KEY MANAGEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">Set forth below is information
concerning our other non-director key management personnel.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23.05pt">Alisha Charlton (47)
was appointed our Chief Financial Officer in January 2015. She joined the Company in January 2014 as Senior Director of Finance.
Prior to joining the Company, Ms. Charlton held various accounting positions at Comarco, Inc. from October 2000 to January 2014
culminating in her appointment as Chief Accounting Officer in April 2011. Prior to her 13 year tenure at Comarco, Ms. Charlton
held various accounting and finance positions with CKE Restaurants, Inc. from February 1995 to October 2000. Ms. Charlton began
her career in July 1991 with KPMG Peat Marwick (now KPMG LLP) and was formerly a certified public accountant. Ms. Charlton holds
a B.A. in Business Economics from the University of California, Santa Barbara and a CPA license (inactive) from the California
State Board of Accountancy.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23.05pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>BOARD MEETINGS AND RELATED MATTERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">During the fiscal year
ended June 30, 2016, our Board held four meetings and acted four times by unanimous written consent. The independent members did
not have any executive sessions during the meetings held during the fiscal year ended June 30, 2016. The &ldquo;independent directors&rdquo;
consist of all non-employee, &ldquo;independent directors&rdquo; (as defined in Rule 5605(a)(2) of the Nasdaq Listing Rules). No
director attended less than 75% of the aggregate of all meetings of our Board and all meetings of committees of our Board upon
which he served.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt"><B>Audit Committee</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">Our
Board has an Audit Committee that consists of three Board members, Messrs. Hovda (Chairman), Cabillot and Swenson. The Audit Committee
is comprised entirely of non-employee, &ldquo;independent directors&rdquo; (as defined in Rule 5605(a)(2) of the Nasdaq Listing
Rules) and operates under a written charter adopted by our Board. The duties of the Audit Committee include meeting with our independent
registered public accounting firm to review the scope of the annual audit and to review our quarterly and annual financial statements
before the statements are released to our shareholders. The Audit Committee also evaluates the independent public accounting firm&rsquo;s
performance and&nbsp;appoints or replaces the independent public accounting firm subject, if applicable, to the consideration of shareholder
ratification for&nbsp;the&nbsp;ensuing fiscal year. A copy of the Audit Committee&rsquo;s current charter may be found at <U>http://www.pro-dex.com/wp-content/uploads/2016/06/Audit-Committee-Charter-Final-06.16-1.pdf</U>.
The Audit Committee and Board have confirmed that the Audit Committee does and will continue to
include at least three independent directors and has confirmed that Messrs. Hovda, Cabillot and Swenson each meet applicable SEC
regulations for designation as an &ldquo;Audit Committee Financial Expert&rdquo; based upon their respective experience noted
elsewhere in this proxy statement. The Audit Committee held six meetings during the fiscal year ended June 30, 2016 and acted
once by unanimous written consent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt"><B>Nominating/Corporate
Governance Committee</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt"><FONT STYLE="font-size: 10pt">Our
Board has a Nominating/Corporate Governance Committee (&ldquo;Nominating Committee&rdquo;) that consists of four Board members,
Messrs. Cabillot (Chairman), Farrell, Hovda and Swenson. The Nominating Committee is comprised entirely of non-employee, &ldquo;independent
directors&rdquo; (as defined in Rule 5605(a)(2) of the Nasdaq Listing Rules) and operates under a written charter adopted by our
Board, a copy of which may be found at </FONT><U>http://www.pro-dex.com/media/23113/prodex_gov_committee_charter.pdf</U>. <FONT STYLE="font-size: 10pt">In
such capacity, the Nominating Committee identifies and reviews the qualifications of candidate nominees to our Board. During the
fiscal year ended June 30, 2016, the Nominating Committee held two meetings during the fiscal year ended June 30, 2016.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">The Nominating Committee
works with our Board to determine the appropriate characteristics, skills and experiences for our Board as a whole and its individual
members with the objective of having a Board with diverse experience. The Nominating Committee believes that it is desirable that
directors possess an understanding of our business environment and have the requisite ethical standards, knowledge, skills, expertise
and diversity of experience such that our Board&rsquo;s ability to manage and direct our affairs and business is enhanced. Additional
considerations may include an individual&rsquo;s capacity to enhance the ability of committees of our Board to fulfill their duties
and/or satisfy any independence requirements imposed by law, regulation or listing requirements. The Nominating Committee may receive
candidate nomination suggestions from current Board members, our executive officers, our shareholders or other sources, which may
be either unsolicited or in response to requests from our Board for such candidates. The Nominating Committee may also, from time
to time, engage firms that specialize in identifying director candidates. Once a person has been identified by the Nominating Committee
as a potential candidate, the Nominating Committee may collect and review publicly available information regarding the person to</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<!-- Field: Page; Sequence: 9; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%; text-align: center; font: normal 10pt Times New Roman, Times, Serif">-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->7<!-- Field: /Sequence -->-&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: normal 8pt Arial, Helvetica, Sans-Serif"><TR><TD STYLE="text-align: left; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">assess whether the person should be considered further. If the Nominating Committee determines that the candidate warrants further
consideration, a member of the Nominating Committee may contact the person. Generally, if the person expresses a willingness to
be considered and to serve on our Board, the Nominating Committee may request information from the candidate, review the person&rsquo;s
accomplishments and qualifications and may conduct one or more interviews with the candidate. The Nominating Committee may consider
all such information in light of information regarding any other candidates that it might be evaluating for nomination to our Board.
The Nominating Committee or other Board members may also contact one or more references provided by the candidate or may contact
other members of the business community or other persons that may have greater first-hand knowledge of the candidate&rsquo;s qualifications
and accomplishments. With the candidate&rsquo;s consent, the Nominating Committee may also engage an outside firm to conduct background
checks on the candidate as part of the evaluation process. The Nominating Committee&rsquo;s evaluation process does not vary based
on the source of the recommendation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">Shareholder nominations
for director should be sent to our Secretary and should include the candidate&rsquo;s name and qualifications and a statement from
the candidate that he or she consents to being named in the proxy statement and will serve as a director if elected. In order for
any such candidate to be considered for nomination and, if nominated, to be included in the proxy statement, such recommendation
must satisfy the requirements discussed later in this proxy statement under the heading &ldquo;Proposals of Shareholders.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">In compiling the list
of our Board nominees appearing in this proxy statement, nominee referrals as well as nominee recommendations were received from
existing directors and members of management&mdash;both solicited and unsolicited. No paid consultants were engaged by us, our
Board or any of our Board&rsquo;s committees for the purposes of identifying qualified, interested Board candidates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt"><B>Compensation Committee</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">Our Board has a Compensation
Committee that consists of three Board members, Messrs. Swenson (Chairman), Cabillot and Farrell. The Compensation Committee is
comprised entirely of non-employee, &ldquo;independent directors&rdquo; (as defined in Rule 5605(a)(2) of the Nasdaq Listing Rules)
and operates under a written charter adopted by our Board. A copy of the Compensation Committee&rsquo;s current charter may be
found at <U>http://www.pro-dex.com/media/23092/compensation_committee_charter.pdf</U>. The Compensation Committee establishes
compensation policies applicable to our executive officers and directors. During the fiscal year ended June 30, 2016, the full
Board carried out the duties typically ascribed to the Compensation Committee. As such, the Compensation Committee held no separate
meetings during the fiscal year ended June 30, 2016. The committee did act once by unanimous written consent during the fiscal
year ended June 30, 2016.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">From time to time, various
members of management and other employees, as well as outside advisors or consultants, may be invited by the Compensation Committee
to make presentations, provide financial or other background information or advice, or otherwise participate in Compensation Committee
meetings or executive sessions of the Board. Among other things, the charter of the Compensation Committee grants the Compensation
Committee authority to obtain, at our expense, advice and assistance from internal and external legal, accounting or other advisors
and consultants and other external resources that the Compensation Committee considers necessary or appropriate in the performance
of its duties. In particular, the Compensation Committee has the sole authority to retain compensation consultants to assist in
its evaluation of executive and director compensation, including the authority to approve the consultant&rsquo;s reasonable fees
and other retention terms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Investment Committee</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">The Investment Committee
was formed in April 2013 and is currently comprised of one management director, Mr. Van Kirk, and two non-management directors,
Mr. Cabillot and Mr. Swenson, who chairs the committee. The purpose of the Investment Committee is to administer and invest surplus
capital from time to time, in such amounts as approved by the board, in authorized investments. The investment committee acted
twice by unanimous written consent during fiscal 2016.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FAMILY RELATIONSHIPS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">There are no family
relationships among our executive officers and directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>


<!-- Field: Page; Sequence: 10; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 100%; text-align: center; font: normal 10pt Times New Roman, Times, Serif">-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->8<!-- Field: /Sequence -->-&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: normal 8pt Arial, Helvetica, Sans-Serif"><TR><TD STYLE="text-align: left; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->


<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>BOARD LEADERSHIP STRUCTURE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">Our Board has separated
the roles of Chairman of the Board and Chief Executive Officer. Mr. Swenson, an independent director, serves as Chairman of our
Board and presides at all Board and shareholder meetings. Mr. Van Kirk, our Chief Executive Officer, serves as our primary spokesperson
and supervises our business, subject to the direction of our Board. The independent Board members annually assess Mr. Van Kirk&rsquo;s
performance as Chief Executive Officer. We believe that an independent Chairman of the Board is better able to provide oversight
and guidance to management, especially in relation to the Board&rsquo;s essential role in risk management oversight, and to ensure
the efficient use and accountability of resources. Furthermore, this separation provides for focused engagement between these two
roles in their respective areas of responsibility, while still providing for collaborative participation. The separation of the
Chairman of the Board and Chief Executive Officer roles, together with our other comprehensive corporate governance practices,
are designed to establish and preserve management accountability, provide a structure that allows the Board to set objectives and
monitor performance, and enhance shareholder value.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>BOARD&rsquo;S ROLE IN RISK OVERSIGHT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">Our Board has an active
role, as a whole and also at the committee level, in overseeing management of our risks. Our Board regularly reviews information
regarding our credit, liquidity and operations, as well as the risks associated with each. The Compensation Committee is responsible
for overseeing the management of risks relating to our executive compensation plans and arrangements. The Audit Committee oversees
management of financial risks. The Nominating Committee manages risks associated with the independence of our Board and potential
conflicts of interest. While each committee is responsible for evaluating certain risks and overseeing the management of such risks,
the entire Board is regularly informed through committee and management reports about such risks and their mitigation. Our Board
believes the division of risk management responsibilities described above is an effective approach for evaluating and addressing
the risks we face and that the structure allows our Board to exercise effective oversight of the actions of management.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>COMPENSATION OF EXECUTIVE OFFICERS AND
MANAGEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Compensation Committee Procedures</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">The Compensation Committee
makes its most significant determinations with respect to annual compensation, bonus awards, and new financial and other corporate
performance objectives for executive compensation purposes, at one or more meetings held during the fiscal year for which the targets
and compensation levels are applicable. At various meetings throughout the year, the Compensation Committee also considers matters
related to individual compensation, such as compensation for new executive hires, as well as high-level strategic issues, such
as the efficacy of, and any risks relating to, our compensation strategies, policies and practices, potential modifications to
those strategies, policies and practices, and new trends, plans or approaches to compensation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">Generally, the Compensation
Committee&rsquo;s process consists of two related elements: (i) the determination of compensation levels and (ii) the establishment
of financial and other corporate performance objectives in connection with our Annual Incentive Plan. Our Annual Incentive Plan
provides for payment of cash bonuses to participants following the completion of a fiscal year subject to the attainment of certain
performance goals. For executive officers other than our CEO, the Compensation Committee solicits and considers evaluations and
recommendations submitted to the Compensation Committee by our CEO. In the case of our CEO, the evaluation of his performance is
conducted by the Compensation Committee, which determines any adjustments to his compensation. Our CEO may not participate in,
or be present during, any deliberations or determinations of the Compensation Committee regarding his compensation. For all executive
officers and directors, as part of its deliberations, the Compensation Committee may review and consider, as appropriate, materials
such as financial reports and projections, operational data, tax and accounting information, tally sheets that set forth the total
compensation that may become payable to executive officers in various hypothetical scenarios, our stock performance data, and analyses
of historical executive compensation levels and our current compensation levels. Periodically, the Compensation Committee reviews
all of our incentive compensation plans in order to evaluate the level of risk that such plans may encourage and, along with management&rsquo;s
report concerning such matters and their mitigation, to ensure that each plan is properly monitored and evaluated. The specific
determinations of the Compensation Committee with respect to executive compensation for the fiscal year ended June 30, 2016 are
described herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt"></P>

<!-- Field: Page; Sequence: 1; Options: NewSection; Value: 9 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->9<!-- Field: /Sequence -->-</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt">&nbsp;</DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Compensation Committee Philosophy</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 25pt">Our compensation
philosophy is predicated upon the following concepts:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.35in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">We pay competitively. We are committed to providing a pay program that helps attract and retain
highly qualified people in the industry. To ensure that pay is competitive, we compare our pay practices with those of other leading
companies of similar size and location(s) and set our pay parameters based on this review.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.35in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">We pay for sustained performance. Executive officers are rewarded based upon corporate performance
and individual performance. Corporate performance is evaluated by the Compensation Committee by reviewing the extent to which strategic
and business plan goals are met, including such factors as revenues, operating profit and cash flow.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.35in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">We strive for fairness in the administration of pay and to achieve a balance of the compensation
paid to a particular individual as compared to the compensation paid to both our executives and executives at comparable companies.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.35in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">We believe that employees should understand the performance evaluation and pay administration process.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 25pt">The Compensation Committee
believes that it is important that our executives be compensated in a manner that closely links compensation with performance and
yet does not incent excessive risk-taking. To that end, the Compensation Committee has developed a comprehensive and balanced compensation
plan that includes a base salary; annual and multi-year cash incentives based upon our Annual Incentive Plan; and, a package of
benefits similar in scope and nature to those offered to all our other employees. The Compensation Committee believes that equity-based
incentives are an integral component of a competitive compensation plan. Accordingly, in September 2016, our Board approved the
2016 Equity Incentive Plan, included herein as Appendix A, and for which the Board is seeking shareholder approval in Proposal
No. 3. Additionally, in September 2014 our Board approved the 2014 Employee Stock Purchase Plan (the &ldquo;ESPP&rdquo;) which
was approved by our shareholders in December 2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 25pt">The Compensation Committee
believes that there are no risks related to our compensation plans that would result in a material adverse impact on us. This conclusion
is based upon management&rsquo;s risk analysis and the Compensation Committee&rsquo;s belief that the following mitigating factors
also serve to reduce such risks:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.35in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Incentives are capped at a maximum amount regardless of the degree to which objectives may be exceeded.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.35in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Payments are based upon audited year end results.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.35in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Multiple objectives are used as performance targets.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.35in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Computations are reviewed at regular intervals during the year and are subject to multiple levels
of review at the management, committee, and full Board level.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.35in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">All incentives are based upon pre-established objective criteria as approved by our Board.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

<!-- Field: Page; Sequence: 2; Value: 9 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->10<!-- Field: /Sequence -->-</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt">&nbsp;</DIV>
    <!-- Field: /Page -->

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Compensation of Executive Officers</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">The following table
sets forth certain compensation information for the fiscal years ended June 30, 2016 and 2015, for our Chief Executive Officer
and our Chief Financial Officer who were the only executive officers whose compensation exceeded $100,000 during the fiscal year
ended June 30, 2016 (collectively, the &ldquo;Named Executive Officers&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>Summary Compensation Table</I></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt"><B>Name
                                         and</B></FONT></P></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt"><B>Salary</B></FONT></P></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt"><B>All
                                         Other</B><BR>
                                         <B>Compensation<SUP>(3)</SUP></B></FONT></P></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt"><B>Total</B></FONT></P></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 2px solid"><FONT STYLE="font-size: 8pt">Principal Position</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 2px solid"><FONT STYLE="font-size: 8pt">Year</FONT></TD><TD STYLE="padding-bottom: 1pt; font-weight: bold; border-bottom: Black 2px solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 2px solid"><FONT STYLE="font-size: 8pt">($)</FONT></TD><TD STYLE="padding-bottom: 1pt; font-weight: bold; border-bottom: Black 2px solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 2px solid"><FONT STYLE="font-size: 8pt">($)</FONT></TD><TD STYLE="padding-bottom: 1pt; font-weight: bold; border-bottom: Black 2px solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 2px solid"><FONT STYLE="font-size: 8pt">($)</FONT></TD><TD STYLE="padding-bottom: 1pt; font-weight: bold; border-bottom: Black 2px solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 36%; text-align: justify; text-indent: -5.05pt; padding-left: 5.05pt"><FONT STYLE="font-size: 10pt">Richard
    L. Van Kirk<FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>(1)</SUP></FONT></FONT></TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: center">2016</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">205,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">36,609</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">241,609</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-left: 10.35pt; background-color: rgb(204,238,255)">Director, CEO, President and COO</TD><TD STYLE="background-color: rgb(204,238,255)">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,238,255)">&nbsp;</TD><TD STYLE="text-align: center; background-color: rgb(204,238,255)">2015</TD><TD STYLE="text-align: left; background-color: rgb(204,238,255)">&nbsp;</TD><TD STYLE="background-color: rgb(204,238,255)">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,238,255)">$</TD><TD STYLE="text-align: right; background-color: rgb(204,238,255)">191,539</TD><TD STYLE="text-align: left; background-color: rgb(204,238,255)">&nbsp;</TD><TD STYLE="background-color: rgb(204,238,255)">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,238,255)">$</TD><TD STYLE="text-align: right; background-color: rgb(204,238,255)">19,802</TD><TD STYLE="text-align: left; background-color: rgb(204,238,255)">&nbsp;</TD><TD STYLE="background-color: rgb(204,238,255)">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: rgb(204,238,255)">$</TD><TD STYLE="text-align: right; background-color: rgb(204,238,255)">211,341</TD><TD STYLE="text-align: left; background-color: rgb(204,238,255)">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; text-indent: -5.05pt; padding-left: 5.05pt; background-color: White"><FONT STYLE="font-size: 10pt">Alisha K. Charlton<FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>(2)</SUP></FONT></FONT></TD><TD STYLE="background-color: White">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: White">&nbsp;</TD><TD STYLE="text-align: center; background-color: White">2016</TD><TD STYLE="text-align: left; background-color: White">&nbsp;</TD><TD STYLE="background-color: White">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: White">$</TD><TD STYLE="text-align: right; background-color: White">165,000</TD><TD STYLE="text-align: left; background-color: White">&nbsp;</TD><TD STYLE="background-color: White">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: White">$</TD><TD STYLE="text-align: right; background-color: White">5,299</TD><TD STYLE="text-align: left; background-color: White">&nbsp;</TD><TD STYLE="background-color: White">&nbsp;</TD>
    <TD STYLE="text-align: left; background-color: White">$</TD><TD STYLE="text-align: right; background-color: White">170,299</TD><TD STYLE="text-align: left; background-color: White">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-left: 10.35pt">Chief Financial Officer</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">2015</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">158,673</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3,225</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">161,898</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 15.95pt"><SUP>(1)</SUP></TD><TD STYLE="text-align: justify">Mr. Van Kirk was appointed our Chief Executive Officer, President and Director on January 12, 2015,
in addition to continuing his position as COO.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0%"></TD><TD STYLE="width: 15.95pt"><SUP>(2)</SUP></TD><TD STYLE="text-align: justify">Ms. Charlton joined Pro-Dex on January 29, 2014 and was appointed our Chief Financial Officer on
January 12, 2015.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0%"></TD><TD STYLE="width: 15.95pt; text-align: left"><SUP>(3)</SUP></TD><TD STYLE="text-align: justify">The amounts reported above under the heading &ldquo;All
Other Compensation&rdquo; consist of the following:</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center; text-indent: -5.05pt; padding-left: 5.05pt; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: bottom; border-bottom: Black 2px solid">&nbsp;</TD><TD COLSPAN="21" STYLE="font-size: 10pt; text-align: center; vertical-align: bottom; border-bottom: Black 2px solid"><FONT STYLE="font-size: 8pt"><B>All
                                         Other Compensation ($)</B></FONT></TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: bottom; border-bottom: Black 2px solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center; text-indent: -5.05pt; padding-left: 5.05pt; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt"><B>Insurance</B></FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt"><B>401K Matching</B></FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt"><B>AIP &amp; Other</B></FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt"><B>Separation</B></FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; text-indent: -5.05pt; padding-left: 5.05pt; vertical-align: bottom"><FONT STYLE="font-size: 8pt">Name
    and</FONT></TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt"><B>Premiums</B></FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt"><B>Contributions</B></FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt"><B>Awards</B></FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt"><B>Payments</B></FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt"><B>Total</B></FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; text-indent: -5.05pt; padding-left: 5.05pt; vertical-align: bottom; border-bottom: Black 2px solid"><FONT STYLE="font-size: 8pt">Principal
    Position</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom; border-bottom: Black 2px solid"><FONT STYLE="font-size: 8pt"><B>Year</B></FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom; border-bottom: Black 2px solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom; border-bottom: Black 2px solid"><FONT STYLE="font-size: 8pt"><B>($)</B></FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom; border-bottom: Black 2px solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom; border-bottom: Black 2px solid"><FONT STYLE="font-size: 8pt"><B>($)</B></FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom; border-bottom: Black 2px solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom; border-bottom: Black 2px solid"><FONT STYLE="font-size: 8pt"><B>($)</B></FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom; border-bottom: Black 2px solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom; border-bottom: Black 2px solid"><FONT STYLE="font-size: 8pt"><B>($)</B></FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom; border-bottom: Black 2px solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom; border-bottom: Black 2px solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom; border-bottom: Black 2px solid"><FONT STYLE="font-size: 8pt"><B>($)</B></FONT></TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom; border-bottom: Black 2px solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 27%; font-size: 10pt; text-align: justify; text-indent: -5.05pt; padding-left: 5.05pt">Richard L. Van Kirk</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; font-size: 10pt; text-align: center; vertical-align: bottom">2016</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 9%; font-size: 10pt; text-align: right">18,066</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 9%; font-size: 10pt; text-align: right">2,633</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 9%; font-size: 10pt; text-align: right">15,910</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 9%; font-size: 10pt; text-align: right">36,609</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: justify; padding-left: 10.35pt; background-color: rgb(204,238,255)">Director, CEO, President and COO</TD><TD STYLE="font-size: 10pt; background-color: rgb(204,238,255)">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; background-color: rgb(204,238,255)">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: bottom; background-color: rgb(204,238,255)">2015</TD><TD STYLE="font-size: 10pt; text-align: left; background-color: rgb(204,238,255)">&nbsp;</TD><TD STYLE="font-size: 10pt; background-color: rgb(204,238,255)">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; background-color: rgb(204,238,255)">$</TD><TD STYLE="font-size: 10pt; text-align: right; background-color: rgb(204,238,255)">17,887</TD><TD STYLE="font-size: 10pt; text-align: left; background-color: rgb(204,238,255)">&nbsp;</TD><TD STYLE="font-size: 10pt; background-color: rgb(204,238,255)">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; background-color: rgb(204,238,255)">$</TD><TD STYLE="font-size: 10pt; text-align: right; background-color: rgb(204,238,255)">1,915</TD><TD STYLE="font-size: 10pt; text-align: left; background-color: rgb(204,238,255)">&nbsp;</TD><TD STYLE="font-size: 10pt; background-color: rgb(204,238,255)">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; background-color: rgb(204,238,255)">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; background-color: rgb(204,238,255)">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left; background-color: rgb(204,238,255)">&nbsp;</TD><TD STYLE="font-size: 10pt; background-color: rgb(204,238,255)">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; background-color: rgb(204,238,255)">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; background-color: rgb(204,238,255)">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left; background-color: rgb(204,238,255)">&nbsp;</TD><TD STYLE="font-size: 10pt; background-color: rgb(204,238,255)">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; background-color: rgb(204,238,255)">$</TD><TD STYLE="font-size: 10pt; text-align: right; background-color: rgb(204,238,255)">19,802</TD><TD STYLE="font-size: 10pt; text-align: left; background-color: rgb(204,238,255)">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: justify; text-indent: -5.05pt; padding-left: 5.05pt; background-color: White">Alisha K. Charlton</TD><TD STYLE="font-size: 10pt; background-color: White">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; background-color: White">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: bottom; background-color: White">2016</TD><TD STYLE="font-size: 10pt; text-align: left; background-color: White">&nbsp;</TD><TD STYLE="font-size: 10pt; background-color: White">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; background-color: White">$</TD><TD STYLE="font-size: 10pt; text-align: right; background-color: White">3,515</TD><TD STYLE="font-size: 10pt; text-align: left; background-color: White">&nbsp;</TD><TD STYLE="font-size: 10pt; background-color: White">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; background-color: White">$</TD><TD STYLE="font-size: 10pt; text-align: right; background-color: White">1,666</TD><TD STYLE="font-size: 10pt; text-align: left; background-color: White">&nbsp;</TD><TD STYLE="font-size: 10pt; background-color: White">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; background-color: White">$</TD><TD STYLE="font-size: 10pt; text-align: right; background-color: White">118</TD><TD STYLE="font-size: 10pt; text-align: left; background-color: White">&nbsp;</TD><TD STYLE="font-size: 10pt; background-color: White">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; background-color: White">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; background-color: White">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left; background-color: White">&nbsp;</TD><TD STYLE="font-size: 10pt; background-color: White">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; background-color: White">$</TD><TD STYLE="font-size: 10pt; text-align: right; background-color: White">5,299</TD><TD STYLE="font-size: 10pt; text-align: left; background-color: White">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: justify; padding-left: 10.35pt">Chief Financial Officer</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: bottom">2015</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">1,524</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">1,701</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">3,225</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Employment Agreements with Named Executive
Officers</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 23pt"><B>Employment Arrangement with Richard L. Van Kirk</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">On January 12, 2015,
Mr. Van Kirk began service as our Chief Executive Officer, President and Director, in addition to continuing to serve as our Chief
Operating Officer, a position he has held since April 23, 2013. In connection with his 2013 appointment as Chief Operating Officer,
Mr. Van Kirk entered into an at-will employment arrangement (the &ldquo;April 2013 Employment Arrangement&rdquo;), which incorporates
certain terms of Mr. Van Kirk&rsquo;s prior at-will employment arrangement dated January 6, 2006. Pursuant to the April 2013 Employment
Arrangement, Mr. Van Kirk&rsquo;s compensation consists of the following which are pursuant to the April 2013 Employment arrangement
(except for the base compensation which amount was increased upon his appointment as Chief Executive Officer):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.35in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>A base salary at an annualized rate of $205,000.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.35in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>Participation in our Annual Incentive Plan and our prior Long Term Incentive Plan, the latter of which was terminated by our
Board on June 26, 2014.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.35in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Mr. Van Kirk was permitted to participate in any program of stock options or other equity grants
that we provided key employees from time to time. Such grants were made under the terms and provisions of the Second Amended and
Restated 2004 Stock Option Plan, which was terminated by our Board on June 26, 2014. Mr. Van Kirk is permitted to participate in
the ESPP on the same terms as other employees, which was approved by our Board in September, 2014 and our shareholders in December,
2014.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.35in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Health, dental, disability and life insurance, qualified retirement plans, and optional employee
benefits on the same terms as other employees.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

<!-- Field: Page; Sequence: 3; Value: 9 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->11<!-- Field: /Sequence -->-</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt">&nbsp;</DIV>
    <!-- Field: /Page -->

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 23pt"><B>Employment Arrangement with Alisha K.
Charlton</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">On January 12, 2015,
Ms. Charlton began service as our Chief Financial Officer. In connection with that appointment, Ms. Charlton continued her at-will
employment arrangement. Ms. Charlton&rsquo;s compensation consists of the following which are pursuant to her at-will employment
upon her hire date of January 29, 2014 (except for the base compensation which amount was increased upon her appointment as Chief
Financial Officer):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.35in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>A base salary at an annualized rate of $165,000, such amount was increased to $177,500 effective September 11, 2016.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.35in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Ms. Charlton is permitted to participate in the ESPP on the same terms as other employees, which was approved by our Board
in September, 2014 and by our shareholders in December, 2014.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.35in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Health, dental, disability and life insurance, qualified retirement plans, and optional employee
benefits on the same terms as other employees.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Annual Incentive Awards</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23.05pt">There were no AIP
awards accrued in fiscal years 2016 or 2015.Mr.Van Kirk&rsquo;s 2016 AIP award consisted of a cash distribution in the amount of
$11,925 accrued for in a previous fiscal year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23.05pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Outstanding Equity Awards at Fiscal Year End</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">The following table
sets forth information about outstanding equity awards held by our Named Executive Officers as of June 30, 2016.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 70%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="13" STYLE="font-weight: bold; text-align: center; border-bottom: Black 2px solid"><FONT STYLE="font-size: 8pt">Option Awards</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="6" STYLE="text-align: center; vertical-align: bottom; border-bottom: Black 2px solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 8pt"><B>Number
                                         of Securities Underlying</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 8pt"><B>Unexercised
                                 Options</B></FONT></P></TD><TD STYLE="text-align: center; vertical-align: bottom"></TD><TD STYLE="text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center; vertical-align: bottom"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P></TD><TD STYLE="text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: bottom"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; vertical-align: bottom; border-bottom: Black 2px solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt"><FONT STYLE="font-size: 8pt"><B>Name</B></FONT></P></TD><TD STYLE="text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center; vertical-align: bottom; border-bottom: Black 2px solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 8pt"><B>Exercisable</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 8pt"><B>&#9;(#)&#9;</B></FONT></P></TD><TD STYLE="text-align: center; vertical-align: bottom; border-bottom: Black 2px solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center; vertical-align: bottom; border-bottom: Black 2px solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 8pt"><B>Unexercisable</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 8pt"><B>&#9;(#)&#9;</B></FONT></P></TD><TD STYLE="text-align: center; vertical-align: bottom; border-bottom: Black 2px solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center; vertical-align: bottom; border-bottom: Black 2px solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt"><B>Option</B><BR>
<B>Exercise
                                         Price</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt"><B>($)</B></FONT></P></TD><TD STYLE="text-align: center; vertical-align: bottom; border-bottom: Black 2px solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: bottom; border-bottom: Black 2px solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt"><B>Option</B><BR>
<B>Expiration</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt"><B>Date</B></FONT></P></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 30%; text-align: justify; text-indent: -5.05pt; padding-left: 5.05pt">Richard L. Van Kirk&#9;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 16%; text-align: right">3,334</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 17%; text-align: center; vertical-align: bottom">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">4.38</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 15%; text-align: right; vertical-align: bottom">05/18/2017</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; text-indent: -5.05pt; padding-left: 5.05pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center; vertical-align: bottom">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1.97</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">10/07/2020</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; text-indent: -5.05pt; padding-left: 5.05pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">25,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center; vertical-align: bottom">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1.80</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">09/12/2021</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; text-indent: -5.05pt; padding-left: 5.05pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center; vertical-align: bottom">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1.73</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">09/11/2022</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Compensation of Directors</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 22.5pt"><U>2013 Directors&rsquo; Compensation Plan</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt">In May 2, 2013, our
Board created the 2013 Directors&rsquo; Compensation Plan that provides for the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 22.5pt"></TD><TD STYLE="width: 13.5pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Fees of $200 for participation in Board or Committee meetings, to a maximum of $2,000 per fiscal
year; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 22.5pt"></TD><TD STYLE="width: 13.5pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">An annual retainer of $23,000 for the Audit Committee Chair (which may be modified in compensating
any future Audit Committee Chair).</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt">The 2013 Directors&rsquo;
Compensation Plan has no provision for (a) retainers other than that described above, or (b) grants of options, restricted stock
or other forms of equity compensation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt">The following table
details the cash retainers and fees, as well as equity compensation in the form of stock awards, earned by our non-employee directors
during fiscal 2016:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 2px solid"><FONT STYLE="font-size: 8pt">Name</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: left; border-bottom: Black 2px solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt"><B>Fees</B><BR> <B>Paid in Cash<FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>(1)</SUP></FONT></B><BR> <B>($)</B></FONT></P>

</TD><TD STYLE="font-weight: bold; text-align: left; border-bottom: Black 2px solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: left; border-bottom: Black 2px solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt"><B>Option Awards</B><BR> <B>($)</B></FONT></P>

</TD><TD STYLE="font-weight: bold; text-align: left; border-bottom: Black 2px solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: left; border-bottom: Black 2px solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt"><B>Total</B><BR> <B>($)</B></FONT></P>

</TD><TD STYLE="font-weight: bold; text-align: left; border-bottom: Black 2px solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 46%; text-align: justify">David C. Hovda</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">25,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">25,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">William J. Farrell III</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3,800</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3,800</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Nicholas J. Swenson</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">5,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">5,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Raymond E. Cabillot</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">5,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">5,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.35in"></TD><TD STYLE="width: 0.25in">(1)</TD><TD STYLE="text-align: justify">The cash amount reported in this column represents amounts earned during fiscal 2016. All amounts
were paid in the current fiscal year accept for the 4<SUP>th</SUP> quarter accrual, which was paid in fiscal 2017.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<!-- Field: Page; Sequence: 4; Value: 9 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->12<!-- Field: /Sequence -->-</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt">&nbsp;</DIV>
    <!-- Field: /Page -->

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">Effective May 1, 2016
the Board acted by unanimous written consent to increase each non-employee director&rsquo;s compensation to $18,000 annually, paid
quarterly in arrears and to maintain the audit committee chairman&rsquo;s compensation at $25,000 annually, paid quarterly in arrears.
Accordingly, we are asking our shareholders to vote to approve, on a nonbinding, advisory basis, the compensation of each on our
non-employee directors in Proposal No. 5.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>EQUITY COMPENSATION PLAN INFORMATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 23pt">The following table provides information
as of June 30, 2016 with respect to shares of Common Stock that may be issued under the Company&rsquo;s equity compensation plans.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; background-color: White">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 35%; border-bottom: Black 2px solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>Plan
    Category</B></FONT></TD>
    <TD STYLE="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 20%; border-bottom: Black 2px solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>Number
    of Securities to be Issued Upon Exercise of Outstanding Options Warrants and Rights</B></FONT></TD>
    <TD STYLE="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 18%; border-bottom: Black 2px solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>Weighted-Average
    Exercise Price of Outstanding Options, Warrants and Rights</B></FONT></TD>
    <TD STYLE="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 21%; border-bottom: Black 2px solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>Number
    of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (excluding securities reflected in the
    first column)</B></FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.25in; text-align: left; text-indent: -0.25in"><FONT STYLE="font-size: 10pt">Equity compensation plans approved by Stockholders:</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-bottom: 2pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-bottom: 2pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-bottom: 2pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="padding-left: 0.25in; text-align: left; text-indent: -0.25in"><FONT STYLE="font-size: 10pt">Second Amended and Restated 2004 Stock Option Plan<SUP>(1)</SUP></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-bottom: 2pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">83,334</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-bottom: 2pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">$&nbsp;&nbsp;&nbsp; 1.93</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-bottom: 2pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.25in; text-align: left; text-indent: -0.25in"><FONT STYLE="font-size: 10pt">Amended and Restated 2004 Directors&rsquo; Stock Option Plan<SUP>(2)</SUP></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-bottom: 2pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">7,500</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-bottom: 2pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">$&nbsp;&nbsp;&nbsp; 2.14</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-bottom: 2pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.35in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>(1)</SUP></FONT></TD><TD STYLE="text-align: justify">The Second Amended and Restated 2004 Stock Option Plan was terminated by our Board on June 26, 2014 and, as a result, no further
options may be granted under such plan.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.35in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>(2)</SUP></FONT></TD><TD STYLE="text-align: justify">The Amended and Restated 2004 Directors&rsquo; Stock Option Plan was terminated by our Board on
June 26, 2014 and by our shareholders on December 3, 2014 and as a result, no further options may be granted under this plan.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Options and Restricted Stock Generally</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">Our Board, as the administrator
of each of the plans listed above, has the discretion to accelerate the vesting of any outstanding options held by the employees
and directors in the event of an acquisition of us by a merger or asset sale in which the outstanding options under each such plan
are not to be assumed by the successor corporation or substituted with options to purchase shares of such corporation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">In the event of a change
of control (as such term is defined in the stock option plans listed in the table above, which definition includes, among other
items, (a) conditions under which a person or group becomes a beneficial owner of 50% or more of the voting power of our outstanding
stock, or (b) a change in the composition of our Board occurring within a one-year period of 60% or more), the Board has the discretion
to accelerate the vesting of any outstanding options or shares of restricted stock held by employees. Vesting of outstanding options
held by members of our Board would be automatically accelerated as a result of a change of control.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>AUDIT COMMITTEE REPORT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">The Audit Committee
reports to and acts on behalf of our Board in providing oversight to our financial management, independent registered public accounting
firm, and financial reporting procedures. Our management is responsible for preparing our financial statements and the independent
registered public accounting firm is responsible for auditing those statements. In this context, the Audit Committee has reviewed
and discussed the audited financial statements contained in our 2016 Annual Report on Form 10-K with management and Moss Adams,
LLP, the independent registered public accounting firm engaged to audit such financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">The Audit Committee
has discussed with Moss Adams, LLP the matters required to be discussed by Auditing Standard No. 16 (&ldquo;Communications with
Audit Committees&rdquo;). The Audit Committee has received the written disclosures and the letter from Moss Adams, LLP required
by applicable requirements of the Public Company</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<!-- Field: Page; Sequence: 5; Value: 9 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->13<!-- Field: /Sequence -->-</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt">&nbsp;</DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Accounting Oversight Board regarding the independent registered public accounting
firm&rsquo;s communications with the audit committee concerning independence and has discussed with Moss Adams, LLP its independence.
In concluding that Moss Adams, LLP is independent, the Audit Committee considered, among other factors, whether the non-audit services
provided by Moss Adams, LLP were compatible with maintaining its independence.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">In reliance on the reviews
and discussions referred to above, the Audit Committee recommended to our Board that the audited financial statements be included
in our Annual Report on Form 10-K for the fiscal year ended June 30, 2016, and be filed with the SEC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">The Audit Committee
has appointed Moss Adams, LLP to serve as our independent auditors for the fiscal year ending June 30, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>AUDIT COMMITTEE</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR>
    <TD STYLE="width: 33%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 32%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 33%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 0.75pt; text-align: center"><FONT STYLE="font-size: 10pt">David C. Hovda</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font-size: 10pt">Raymond E. Cabillot</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font-size: 10pt">Nicholas J. Swenson</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CODE OF BUSINESS CONDUCT AND ETHICS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 23pt; text-align: justify">Our code of business conduct and ethics,
as approved by our Board, can be obtained from http://www.pro-dex.com/media/23086/prodex_code_of_conduct.pdf.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">We intend to satisfy
the disclosure requirement under Item 5.05 of Form 8-K relating to amendments to or waivers from provisions of the code that relate
to one of more of the items set forth in Item 406(b) of Regulation S-K and its successor regulation, by describing on our Internet
website, within four business days following the date of a waiver or a substantive amendment, the date of the waiver or amendment,
the nature of the amendment or waiver, and the name of the person to whom the waiver was granted. There have been no waivers of
the ethics policy granted during the fiscal year ended June 30, 2016 and through the date of this proxy statement, nor have there
been any requests for such waivers during that period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">Information on our Internet
site is not, and shall not be deemed to be, a part of this proxy statement or incorporated into any other filings we make with
the SEC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING
COMPLIANCE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">Under Section 16(a)
of the Securities Exchange Act of 1934, as amended (the &ldquo;Exchange Act&rdquo;), our directors and officers and any person
who owns more than ten percent of our Common Stock are required to report their initial ownership of our Common Stock and any subsequent
changes in that ownership to the SEC and the Nasdaq Capital Market. Officers, directors and greater than 10% shareholders are required
by SEC regulations to furnish us with copies of all forms they file in accordance with Section 16(a). To our knowledge, based solely
on our review of the copies of such reports furnished to us or filed with the SEC and written representations that no other reports
were required, for the fiscal year ended June 30, 2016, all Section 16(a) reports required to be filed by our officers directors
and greater than 10% shareholders were properly and timely filed, with the exception of one late report for each of Mr. Swenson
and Farnam Street Partners. In each case the reports were related to stock purchases under Rule 10b5-1 purchase programs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>POLICIES AND PROCEDURES FOR APPROVAL
OF RELATED PARTY TRANSACTIONS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">Our Board has the
responsibility to review and discuss with management and approve, and has adopted written policies and procedures relating to approval
or ratification of, interested transactions with related parties. During this process, the material facts as to the related party&rsquo;s
interest in a transaction are disclosed to all Board members or an applicable committee. Under the policies and procedures, the
Board is to review each interested transaction with a related party that requires approval and either approve or disapprove of
the entry into the interested transaction. An &ldquo;interested transaction&rdquo; is any transaction in which we are a participant
and any related party has or will have a direct or indirect interest. Transactions that are in the ordinary course of business
and would not require either disclosure pursuant to Item 404(a) of Regulation S-K under the Securities Act or approval of the Board
or an independent committee of the Board pursuant to applicable Nasdaq rules would not be deemed interested transactions. No director
may participate in any approval of an interested transaction with respect to which he or she</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt">&nbsp;</P>

<!-- Field: Page; Sequence: 6; Value: 9 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->14<!-- Field: /Sequence -->-</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt">&nbsp;</DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">is a related party. Our Board intends
to approve only those related party transactions that are in the best interests of the Company and our shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">Since July 1, 2015,
the beginning of our fiscal year 2016, there has not been a transaction or series of related transactions to which we were or are
a party, or in which any director, executive officer, holder of more than 5% of any class of our voting securities, or any member
of the immediate family of any of the foregoing persons, had or will have a direct or indirect material interest.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Certain Relationships and Related Transactions</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">We have entered into
indemnification agreements with each of our directors and executive officers. The indemnification agreements and our certificate
of incorporation and bylaws require us to indemnify our directors and officers to the fullest extent permitted by Colorado law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Director Independence</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">Our corporate governance
guidelines provide that a majority of the Board and all members of the Audit, Compensation and Nominating Committees of the Board
will be independent. On an annual basis, each director and executive officer is obligated to complete a Director and Officer Questionnaire
that requires disclosure of any transactions with us in which a director or executive officer, or any member of his or her immediate
family, have a direct or indirect material interest. Following completion of these questionnaires, the Board, with the assistance
of the Nominating Committee, makes an annual determination as to the independence of each director using the current standards
for &ldquo;independence&rdquo; established by the SEC and Nasdaq, additional criteria set forth in our corporate governance guidelines
and consideration of any other material relationship a director may have with us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">The Board has determined
that all of its directors are independent under these standards, except for Mr. Van Kirk, our Chief Executive Officer and President,
who was appointed to our Board on January 12, 2015.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>COMMUNICATIONS WITH DIRECTORS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">Our Board has established
a process to receive communications from shareholders. Shareholders and other interested parties may contact any member (or all
members) of our Board, or the independent directors as a group, any Board committee or any Chair of any such committee by mail
or electronically. To communicate with our Board, any individual directors or any group or committee of directors, correspondence
should be addressed to our Board or any such individual directors or group or committee of directors by either name or title. All
such correspondence should be sent &ldquo;c/o Corporate Secretary&rdquo; at 2361 McGaw Avenue, Irvine, California 92614. To communicate
with any of our directors electronically, a shareholder should send an email to our Secretary: alisha.charlton@pro-dex.com.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">All communications received
as set forth in the preceding paragraph will be opened by the Company&rsquo;s Secretary for the sole purpose of determining whether
the contents represent a message to one or more of the directors. Any contents that are not in the nature of advertising, promotions
of a product or service or patently offensive material will be forwarded promptly to the addressee. In the case of communications
to the Board or any group or committee of directors, the Company&rsquo;s Secretary will make sufficient copies (or forward such
information in the case of e-mail) of the contents to send to each director who is a member of the group or committee to which
the envelope or e-mail is addressed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">It is our policy
that our directors are invited and encouraged to attend all of our annual meetings of shareholders. All of our directors were in
attendance at the 2015 Annual Meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Proposal No. 2</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>RATIFICATION OF APPOINTMENT OF INDEPENDENT
PUBLIC ACCOUNTANTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">The Audit Committee
has appointed the firm of Moss Adams, LLP as our independent registered public accounting firm for the fiscal year ending June
30, 2017, and requests our shareholders to ratify this appointment. In the event that our shareholders do not ratify the selection
of Moss Adams, LLP as our independent public accountants, our Board will consider the selection of another independent public accounting
firm. Even if the appointment is ratified, the Audit Committee in its discretion may direct the appointment of a different independent
registered public accounting firm at any time during the year if it determines that such a change would be in our best interest
and the best interest of our shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt"></P>

<!-- Field: Page; Sequence: 7; Value: 9 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->15<!-- Field: /Sequence -->-</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt">&nbsp;</DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23pt">&nbsp;</P>


<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
representative of Moss Adams, LLP is expected to be present at the Annual Meeting. He or she will have the opportunity to make
a statement if such representative desires to do so and will be available to respond to appropriate questions.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>ACCOUNTING
FEES</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Audit Committee&rsquo;s policy is to pre-approve all auditing services and permitted non-audit services (including the fees and
terms thereof) to be performed for us by our independent registered public accounting firm, subject to the de minimis exceptions
for non-audit services described in Section&nbsp;10A(i)(1)(B) of the Exchange Act, which are approved by the Audit Committee prior
to the completion of the audit. The Audit Committee considers whether the performance of any service by our independent registered
public accounting firm is compatible with maintaining such firm&rsquo;s independence.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table sets forth the aggregate fees billed to us for during the fiscal years ended June 30, 2016 and 2015 by our independent
registered public accounting firm, Moss Adam, LLP, all of which were preapproved by the Audit Committee.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 27pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 2px solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Years
    Ended June 30,</FONT></TD><TD STYLE="padding-bottom: 1pt; font-weight: bold; border-bottom: Black 2px solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 2px solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2016</FONT></TD><TD STYLE="padding-bottom: 1pt; font-weight: bold; border-bottom: Black 2px solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 2px solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2015</FONT></TD><TD STYLE="padding-bottom: 1pt; font-weight: bold; border-bottom: Black 2px solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 60%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Audit Fees<SUP>(1)</SUP>&#9;</FONT></TD><TD STYLE="width: 8%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="width: 12%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">191,000</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 4%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="width: 12%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">146,580</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Audit-Related Fees<SUP>(2)</SUP><SUP>&#9;</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5,950</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Tax
Fees<SUP>(3)</SUP>&#9;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2px solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10,900</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2px solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 2px solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">15,050</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total&#9;</FONT></TD><TD STYLE="padding-bottom: 2pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 4px double; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="border-bottom: Black 4px double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">201,900</FONT></TD><TD STYLE="padding-bottom: 2pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 4px double; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="border-bottom: Black 4px double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">167,580</FONT></TD><TD STYLE="padding-bottom: 2pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 27pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.35in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(1)</SUP></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Audit
                                         Fees</I> consist of fees billed for professional services rendered for the audit of our
                                         consolidated annual financial statements and review of the interim consolidated financial
                                         statements included in quarterly reports and services that are normally provided in connection
                                         with statutory and regulatory filings or engagements.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.35in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(2)</SUP></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Audit-Related
                                         Fees</I> consist of fees billed for assurance and related services that are reasonably
                                         related to the performance of the audit or review of our consolidated financial statements
                                         and are not reported under &ldquo;Audit Fees.&rdquo;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.35in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(3)</SUP></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Tax
                                         Fees</I> consist of fees billed for professional services rendered for tax compliance,
                                         tax advice and tax planning. These services include assistance regarding federal state
                                         and local tax compliance, planning and advice.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Required
Vote and Board Recommendation</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Although
shareholder ratification is not required for the appointment of Moss Adams, LLP as our independent registered public accounting
firm for the fiscal year ending June&nbsp;30, 2017, our Board has directed that this appointment be submitted to our shareholders
for ratification at the Annual Meeting. Assuming a quorum is present at the Annual Meeting, this proposal will be ratified and
approved if the votes cast in favor of this proposal exceed the votes cast opposing this proposal.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>OUR
BOARD RECOMMENDS THAT OUR SHAREHOLDERS VOTE &ldquo;FOR&rdquo; THE RATIFICATION OF THE APPOINTMENT OF MOSS ADAMS, LLP TO SERVE
AS OUR INDEPENDENT PUBLIC ACCOUNTING FIRM FOR THE FISCAL YEAR ENDING JUNE&nbsp;30,&nbsp;2017.</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Proposal
No. 3</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>RATIFICATION
AND APPROVAL OF 2016 EQUITY INCENTIVE PLAN</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>General</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
described above under the heading &ldquo;Equity Compensation Plan Information,&rdquo; the Company&rsquo;s most recent stock option
plans, were both terminated in 2014 with the provision that any outstanding awards under either plan remain outstanding in accordance
with their respective terms. Effective as of September 29, 2016, the Company&rsquo;s Board of Directors approved the Company&rsquo;s
2016 Equity Incentive Plan (the &ldquo;2016 Plan&rdquo;), subject to shareholder ratification and approval of the 2016 Equity
Incentive Plan. The Board of Directors believes the</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 1; Options: NewSection; Value: 16 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt; font: normal 10pt Times New Roman, Times, Serif">&nbsp;-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->16<!-- Field: /Sequence -->-</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">adoption
of the 2016 Plan is appropriate in order to grant additional equity incentives in the future and to ensure that the Company continues
to meet its retention and hiring needs and maintain alignment with the Company&rsquo;s shareholders&rsquo; interests.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
purpose of the 2016 Plan is to promote the interests of the Company and its shareholders by providing incentives to motivate selected
employees, directors and consultants of the Company to achieve long-term corporate objectives and to enable stock-based incentive
awards to qualify as performance-based compensation for purposes of the tax deduction limitations under Section&nbsp;162(m) of
the Code. In order to more closely align the interests of the awardees of incentive stock awards, the Board of Directors believes
it is necessary to adopt and approve the Plan in order to accomplish the purposes of the Plan and enable the Company to attract,
hire, retain and motivate the skilled employees the Company needs to be successful, especially in the competitive labor markets
in which the Company competes. If the shareholders do not approve the Plan, the Plan will not be adopted and no awards will be
granted under the Plan.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Shares
Subject to the 2016 Plan</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
date, no awards of common stock have been issued under the 2016 Plan, and 1,500,000 shares are available for issuance under the
2016 Plan. The 2016 Plan provides for the grant of ISOs, Nonstatutory Stock Options (&ldquo;NSOs&rdquo;), Stock Appreciation Rights
(&ldquo;SARs&rdquo;), Restricted Shares, Restricted Stock Units (&ldquo;RSUs&rdquo;), Performance Awards, and other stock-based
awards. Any shares of common stock that are subject to an award but are not used because the terms and conditions of the award
are not met, or any shares that are used by participants to pay all or part of the purchase price of any option, may again be
used for awards under the 2016 Plan.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
soon as practicable following shareholder approval of this proposal, the Company intends to register on Form S-8 under the Securities
Act of 1933 the issuance of the Company&rsquo;s securities under the 2016 Equity Incentive Plan. A copy of the 2016 Equity Incentive
Plan is attached as <I>Appendix A</I> to this proxy statement and is described below.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Administration</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
compensation committee of the Board of Directors will administer the 2016 Plan. All awards are approved by the compensation committee.
With respect to the participation of individuals whose transactions in the Company&rsquo;s equity securities are subject to Section&nbsp;16
of the Exchange Act, the Plan must be administered in compliance with the requirements, if any, of Rule&nbsp;16b-3 under the Exchange
Act. Subject to the provisions of the Plan, the compensation committee determines the persons to whom awards are to be granted,
the number of shares to be covered by each award, whether an option is to be an ISO or a NSO, the terms of vesting and exercisability
of each option or other award, including the effect thereon of an optionee&rsquo;s termination of service, the type of consideration
to be paid to the Company upon exercise of an option, the duration of each award, and all other terms and conditions of the awards,
subject to the policy that neither the Board of Directors nor the compensation committee may reprice stock options.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/115% Times New Roman; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Eligibility</B></FONT></P>

<P STYLE="font: 10pt/115% Times New Roman; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Generally,
all employees, directors and consultants of the Company or of any present or future parent or subsidiary corporations of the Company
are eligible to participate in the Plan. Any person eligible under the Plan may be granted a NSO. However, only employees may
be granted ISOs.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/115% Times New Roman; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Terms
and conditions of awards</B>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt/115% Times New Roman; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/115% Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Each
award granted under the Plan will be evidenced by a written agreement between the Company and the participant specifying the number
of shares subject to the award and the other terms and conditions of the award, consistent with the requirements of the Plan.
The purchase price per share subject to an option (or the exercise price per share in the case of a SAR) must equal at least the
fair market value of a share of the Company&rsquo;s common stock on the date of grant. The purchase price of any ISO granted to
a person who at the time of grant owns stock possessing more than 10% of the total combined voting power of all classes of stock
of the Company or any parent or subsidiary corporation of the Company, referred to as a 10% Stockholder, must be at least 110%
of the fair</FONT></P>

<P STYLE="font: 10pt/115% Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 0.55in"></P>

<!-- Field: Page; Sequence: 2; Value: 16 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt; font: normal 10pt Times New Roman, Times, Serif">&nbsp;-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->17<!-- Field: /Sequence -->-</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt/115% Times New Roman; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/115% Times New Roman; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">market
value of a share of the Company&rsquo;s common stock on the date of grant. The term of any award under the Plan may not be for
more than ten years or five years in the case of ISOs awarded to any 10% Stockholder. To the extent that the aggregate fair market
value of shares of the Company&rsquo;s common stock subject to options designated as ISOs that become exercisable for the first
time by a participant during any calendar year exceeds $100,000, such excess options shall be treated as NSOs.</FONT></P>

<P STYLE="font: 10pt/115% Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 0.55in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/115% Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Generally,
an option&rsquo;s purchase price may be paid in cash, by check, or in cash equivalent, or if permitted by the compensation committee,
by tender of shares of the Company&rsquo;s common stock owned by the optionee having a fair market value not less than the exercise
price, or by any lawful method approved by the board or by any combination of these. The compensation committee may nevertheless
restrict the forms of payment permitted in connection with any option grant.</FONT></P>

<P STYLE="font: 10pt/115% Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 0.55in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
compensation committee will specify when options granted under the Plan will become exercisable and vested. Shares subject to
options generally vest and become exercisable in installments, subject to the optionee&rsquo;s continued employment or service
or achievement of specified milestones.&nbsp; Unless otherwise provided in the grant documents, options and SARs will be granted
with a minimum vesting period of at least one year.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Awards
of Restricted Shares consist of a specified number of shares of common stock subject to such terms, conditions and transfer restrictions
based on performance standards, periods of service, retention by the participant of a specified number of shares of common stock
or other criteria. Awards of RSUs give participants a right to receive shares of common stock in the future subject to such terms,
conditions and restrictions as established by the compensation committee. RSUs will be settled for common stock, cash or a combination
of both as soon as practicable after the compensation committee has determined that the terms and conditions of the RSU has been
satisfied (or at a later date if the distribution has been deferred).</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Performance
Awards consist of the right to receive a payment contingent on the extent to which predetermined performance targets have been
met during an award period, which shall be two or more fiscal or calendar years. In the compensation committee&rsquo;s discretion,
newly hired or eligible participants may be allowed to receive Performance Awards after an award period has commenced. Payments
of earned Performance Awards will be made in cash, common stock, or a combination of cash and common stock, in the discretion
of the compensation committee.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other
stock-based awards such as stock purchase rights (with or without loans to participants by the Company), awards of common stock,
or awards valued in whole or in part by reference to common stock or dividends on common stock may be granted either alone or
in addition to other awards under the Plan. If specified by the compensation committee in the award agreement, the recipient of
a stock-based award may be entitled to receive, currently or on a deferred basis, interest, dividends or dividend equivalents
with respect to the common stock or other securities covered by the award.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Federal
Income Tax Consequences</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/115% Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following summary is intended only as a general guide as to the United States federal income tax consequences under current law
of participation in the Plan and does not attempt to describe all possible federal or other tax consequences of such participation
or tax consequences based on particular circumstances.</FONT></P>

<P STYLE="font: 10pt/115% Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 0.55in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>ISOs.</I></B>&nbsp;&nbsp;&nbsp;&nbsp;The
grant of an ISO under the Plan will not result in any federal income tax consequences to the optionee or the Company. An optionee
recognizes no federal taxable income upon exercising an ISO (subject to the alternative minimum tax rules discussed below), and
the Company receives no deduction at the time of exercise.&nbsp; In the event of a disposition of stock acquired upon exercise
of an ISO, the tax consequences depend upon how long the optionee has held the shares of common stock. If the optionee does not
dispose of the shares within two years after the ISO was granted, nor within one year after the ISO was exercised, the optionee
will recognize a long-term capital gain (or loss) equal to the difference between the sale price of the shares and the purchase
price. The Company is not entitled to any deduction under these circumstances.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
the optionee fails to satisfy either of the foregoing holding periods, he or she must recognize ordinary income in the year of
the disposition (referred to as a &ldquo;disqualifying disposition&rdquo;). The amount of such ordinary</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<!-- Field: Page; Sequence: 3; Value: 16 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt; font: normal 10pt Times New Roman, Times, Serif">&nbsp;-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->18<!-- Field: /Sequence -->-</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">income
generally is the lesser of (i)&nbsp;the difference between the amount realized on the disposition and the purchase price or (ii)&nbsp;the
difference between the fair market value of the stock on the exercise date and the purchase price. Any gain in excess of the amount
taxed as ordinary income will be treated as a long or short-term capital gain, depending on whether the stock was held for more
than one year. In the year of the disqualifying disposition, the Company is entitled to a deduction equal to the amount of ordinary
income recognized by the optionee, subject to possible limitations imposed by Section&nbsp;162(m) of the Code and so long as the
optionee&rsquo;s total compensation is deemed reasonable in amount.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
&ldquo;spread&rdquo; under an ISO-i.e., the difference between the fair market value of the shares at the time of exercise and
the purchase price-is classified as an item of adjustment in the year of exercise for purposes of the alternative minimum tax.
If an optionee&rsquo;s alternative minimum tax liability exceeds such optionee&rsquo;s regular income tax liability, the optionee
will owe the larger amount of taxes. In order to avoid the application of alternative minimum tax with respect to ISOs, the optionee
must sell the shares within the same calendar year in which the ISOs are exercised. However, such a sale of shares within the
same year of exercise will constitute a disqualifying disposition, as described above.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
the event an ISO is amended, such option may be considered deferred compensation and subject to the rules of Section&nbsp;409A
of the Code. An option subject to Section&nbsp;409A of the Code that fails to comply with the rules of Section&nbsp;409A can result
in the acceleration of income recognition, a 20% additional tax obligation, plus penalties and interest. In addition, the amendment
of an ISO may convert the option from an ISO to a NSO.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>NSOs.</I></B>&nbsp;&nbsp;&nbsp;&nbsp;The
grant of a NSO under the Plan will not result in any federal income tax consequences to the optionee or the Company. Upon exercise
of a NSO, the optionee is subject to income taxes at the rate applicable to ordinary compensation income on the difference between
the option purchase price and the fair market value of the shares on the date of exercise. This income is subject to withholding
for federal income and employment tax purposes. The Company is entitled to an income tax deduction in the amount of the income
recognized by the optionee, subject to possible limitations imposed by Section&nbsp;162(m) of the Code and so long as the Company
withholds the appropriate taxes with respect to such income (if required) and the optionee&rsquo;s total compensation is deemed
reasonable in amount. Any gain or loss on the optionee&rsquo;s subsequent disposition of the shares of common stock will receive
long or short-term capital gain or loss treatment, depending on whether the shares are held for more than one year following exercise.
The Company will not receive a tax deduction for any such gain.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
the event a NSO is amended, such option may be considered deferred compensation and subject to the rules of Section&nbsp;409A
of the Code, which provide rules regarding the timing of payment of deferred compensation. An option subject to Section&nbsp;409A
of the Code that fails to comply with the rules of Section&nbsp;409A may result in the acceleration of income recognition, a 20%
additional tax obligation, plus penalties and interest.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Restricted
Shares.</I></B>&nbsp;&nbsp;&nbsp;&nbsp;The grant of Restricted Shares will subject the recipient to ordinary compensation income
on the difference between the amount paid (if any) for such stock and the fair market value of the shares on the date that the
restrictions lapse. This income is subject to withholding for federal income and employment tax purposes. The Company is entitled
to an income tax deduction in the amount of the ordinary income recognized by the recipient, subject to possible limitations imposed
by Section&nbsp;162(m) of the Code and so long as the Company withholds the appropriate taxes with respect to such income (if
required) and the recipient&rsquo;s total compensation is deemed reasonable in amount. Any gain or loss on the recipient&rsquo;s
subsequent disposition of the shares will receive long or short-term capital gain or loss treatment depending on how long the
stock has been held since the restrictions lapsed. The Company will not receive a tax deduction for any such gain.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Recipients
of Restricted Shares may make an election under Section&nbsp;83(b) of the Code (a &ldquo;Section&nbsp;83(b) Election&rdquo;) to
recognize as ordinary compensation income in the year that such Restricted Shares are granted, the amount equal to the spread
between the amount paid for such stock and the fair market value on the date of the issuance of the stock. If such an election
is made, the recipient recognizes no further amounts of compensation income upon the lapse of any restrictions and any gain or
loss on subsequent disposition will be long or short-term capital gain to the recipient. A Section&nbsp;83(b) Election must be
made within 30&nbsp;days from the time the Restricted Shares are issued.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/115% Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>SARs.</I></B>&nbsp;&nbsp;&nbsp;&nbsp;Recipients
of SARs generally should not recognize income until a SAR is exercised (assuming there is no ceiling on the value of the right).
Upon exercise, the recipient will normally recognize taxable ordinary income for federal income tax purposes equal to the amount
of cash and fair market value of the shares, if any,</FONT></P>

<P STYLE="font: 10pt/115% Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 0.55in"></P>

<!-- Field: Page; Sequence: 4; Value: 16 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt; font: normal 10pt Times New Roman, Times, Serif">&nbsp;-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->19<!-- Field: /Sequence -->-</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt/115% Times New Roman; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/115% Times New Roman; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">received
upon such exercise. Recipients who are employees generally will be subject to withholding for federal income and employment tax
purposes with respect to income recognized upon exercise of a SAR. Recipients will recognize gain upon the disposition of any
shares received on exercise of a SAR equal to the excess of (i)&nbsp;the amount realized on such disposition over (ii)&nbsp;the
ordinary income recognized with respect to such shares under the principles set forth above. That gain will be taxable as long
or short-term capital gain depending on whether the shares were held for more than one year. The Company will be entitled to a
tax deduction to the extent and in the year that ordinary income is recognized by the recipient, subject to possible limitations
imposed by Section&nbsp;162(m) of the Code and so long as the Company withholds the appropriate taxes with respect to such income
(if required) and the recipient&rsquo;s total compensation is deemed reasonable in amount.</FONT></P>

<P STYLE="font: 10pt/115% Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 0.55in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
the event a SAR is amended, such SAR may be considered deferred compensation and subject to the rules of Section&nbsp;409A of
the Code, which provide rules regarding the timing of payment of deferred compensation. A SAR subject to Section&nbsp;409A of
the Code that fails to comply with the rules of Section&nbsp;409A may result in the acceleration of income recognition, a 20%
additional tax obligation, plus penalties and interest.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>RSUs.</I></B>&nbsp;&nbsp;&nbsp;&nbsp;Recipients
of RSUs generally should not recognize income until such units are converted into cash or shares of stock. Upon conversion, the
recipient will normally recognize taxable ordinary income for federal income tax purposes equal to the amount of cash and fair
market value of the shares, if any, received upon such conversion.&nbsp; Recipients who are employees generally will be subject
to withholding for federal income tax purposes upon conversion of the RSUs and withholding for employment tax purposes when the
RSUs vest. Participants will recognize gain upon the disposition of any shares received upon conversion of the RSUs equal to the
excess of (i)&nbsp;the amount realized on such disposition over (ii)&nbsp;the ordinary income recognized with respect to such
shares under the principles set forth above. That gain will be taxable as long or short-term capital gain depending on whether
the shares were held for more than one year. The Company will be entitled to a tax deduction to the extent and in the year that
ordinary income is recognized by the recipient, subject to possible limitations imposed by Section&nbsp;162(m) of the Code and
so long as the Company withholds the appropriate taxes with respect to such income (if required) and the recipient&rsquo;s total
compensation is deemed reasonable in amount.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">RSUs
also can be considered nonqualified deferred compensation and subject to the Section&nbsp;409A of the Code. A grant of RSUs that
does not meet the requirements of Section&nbsp;409A of the Code will result in the acceleration of income recognition, a 20% additional
tax obligation, plus penalties and interest.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/115% Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Performance
Awards.</I></B>&nbsp;&nbsp;&nbsp;&nbsp;Recipients of Performance Awards generally should not recognize income until such awards
are paid in cash or shares of stock. Upon payment, the recipient will normally recognize taxable ordinary income for federal income
tax purposes equal to the amount of cash and fair market value of the shares, if any, received in such payment. Recipients who
are employees generally will be subject to withholding for federal income and employment tax purposes with respect to income recognized
upon the payment of Performance Awards. Participants will recognize gain upon the disposition of any shares received upon the
payment of Performance Awards equal to the excess of (i)&nbsp;the amount realized on such disposition over (ii)&nbsp;the ordinary
income recognized with respect to such shares under the principles set forth above. That gain will be taxable as long or short-term
capital gain depending on whether the shares were held for more than one year. The Company will be entitled to a tax deduction
to the extent and in the year that ordinary income is recognized by the recipient, subject to possible limitations imposed by
Section&nbsp;162(m) of the Code and so long as the Company withholds the appropriate taxes with respect to such income (if required)
and the recipient&rsquo;s total compensation is deemed reasonable in amount.</FONT></P>

<P STYLE="font: 10pt/115% Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 0.55in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/115% Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Other
stock-based awards.</I></B>&nbsp;&nbsp;&nbsp;&nbsp;Recipients of unrestricted stock will recognize ordinary income equal to the
difference between the amount paid for such unrestricted stock and the fair market value of the unrestricted stock on the grant
date. This income is subject to withholding for federal income and employment tax purposes. Any gain or loss on the recipient&rsquo;s
subsequent disposition of the shares receives long or short-term capital gain or loss treatment depending on how long the stock
has been held since the date such unrestricted stock was granted. The Company will be entitled to a tax deduction to the extent
and in the year that ordinary income is recognized by the recipient, subject to possible limitations imposed by Section&nbsp;162(m)
of the Code and so long as the Company withholds the appropriate taxes with respect to such income (if required) and the recipient&rsquo;s
total compensation is deemed reasonable in amount.</FONT></P>

<P STYLE="font: 10pt/115% Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 0.55in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<!-- Field: Page; Sequence: 5; Value: 16 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt; font: normal 10pt Times New Roman, Times, Serif">&nbsp;-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->20<!-- Field: /Sequence -->-</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt/115% Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 0.55in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/115% Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Dividends
and dividend equivalents.</I></B>&nbsp;&nbsp;&nbsp;&nbsp;Recipients of awards that earn dividends or dividend equivalents recognize
ordinary income on any dividend payments received with respect to unvested and/or unexercised shares subject to such awards, which
income is subject to withholding for federal income and employment tax purposes.</FONT></P>

<P STYLE="font: 10pt/115% Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 0.55in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>New
Plan Benefits</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Because
awards under the 2016 Plan are discretionary, no future awards under the 2016 Plan are determinable at this time.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Merger
and Change in Control</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/115% Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Merger.</I></B>&nbsp;&nbsp;&nbsp;&nbsp;Effective
upon a merger, as defined in the Plan, all outstanding awards shall terminate unless they are assumed or continued in connection
with the merger. The compensation committee has the authority to provide for full or partial vesting of unvested awards and the
release from restrictions on transfer and repurchase or forfeiture rights of awards in connection with a merger. The compensation
committee may condition any such award vesting and exercisability or release from restrictions on the termination of service of
the participant to the Company within a specified period following the effective date of the merger.</FONT></P>

<P STYLE="font: 10pt/115% Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/115% Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Change
in control.</I></B>&nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise provided in the applicable award agreement, effective upon a change
in control, as defined in the Plan, all options and SARs outstanding on the date of such change in control will be assumed by,
or replaced with comparable awards, by the surviving corporation, the options and SARs will be converted into options and SARs
of the surviving corporation, except as to options or SARs granted to a participant where a change in control resulted from such
participant&rsquo;s beneficial ownership of the Company&rsquo;s securities.&nbsp; The Board of Directors will have the discretion
to accelerate or vest outstanding options and SARs, or determine that any restrictions on any options or SARs shall lapse, or
that the options and SARs will terminate as provided in the Plan. Unless otherwise provided in the applicable award agreement,
effective upon a change in control, all restrictions applicable to Restricted Share and RSU awards will terminate fully and the
full number of shares subject to each Restricted Share award or the number of shares subject to settlement under each RSU will
immediately be delivered as provided in the Plan, except as to Restricted Share and RSU awards granted to a participant where
a change in control resulted from such participant&rsquo;s beneficial ownership of the Company&rsquo;s securities. Unless otherwise
provided in the applicable award agreement, in the event of a change in control, all Performance Awards shall immediately become
vested and payable to all participants as provided in the Plan, within 30&nbsp;days after such change in control, except as to
Performance Awards granted to a participant where a change in control resulted from such participant&rsquo;s beneficial ownership
of the Company&rsquo;s securities.</FONT></P>

<P STYLE="font: 10pt/115% Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Required
Vote and Board Recommendation</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
affirmative vote of a majority of the shares of the Company&rsquo;s common stock present in person or represented by proxy at
the meeting and entitled to vote on this proposal will constitute shareholder ratification and approval of the 2016 Equity Incentive
Plan; provided, that at least a majority of the Company&rsquo;s outstanding shares of common stock entitled to vote on this proposal
are present in person or represented by proxy at the meeting. As noted above, the Board of Directors has approved the 2016 Plan.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>THE
BOARD OF DIRECTORS RECOMMENDS THAT THE SHAREHOLDERS VOTE &ldquo;FOR&rdquo; THE RATIFICATION AND APPROVAL OF THE 2016 EQUITY INCENTIVE
PLAN.</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Proposal
No.&nbsp;4</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>ADVISORY
VOTE TO APPROVE THE COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 22.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to Section 14A of the Exchange Act, we are asking our shareholders to vote to approve, on a nonbinding, advisory basis, the compensation
of our Named Executive Officers, commonly referred to as the &ldquo;say-</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 22.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<!-- Field: Page; Sequence: 6; Value: 16 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt; font: normal 10pt Times New Roman, Times, Serif">&nbsp;-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->21<!-- Field: /Sequence -->-</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">on-pay&rdquo;
vote. In accordance with the Exchange Act requirements, we are providing our shareholders with an opportunity to express their
views on our Named Executive Officers&rsquo; compensation. Although this advisory vote is nonbinding, our Board and the Compensation
Committee will review and consider the voting results when making future decisions regarding our Named Executive Officer compensation
and related executive compensation programs.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 22.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
encourage shareholders to read the &ldquo;Compensation of Executive Officers and Management&rdquo; section in this proxy statement,
including the compensation tables and the related narrative disclosure, which describes the structure and amounts of the compensation
of our Named Executive Officers for the fiscal year ended June&nbsp;30, 2016. The compensation of our Named Executive Officers
is designed to enable us to attract and retain talented and experienced executives to lead us successfully in a competitive environment.
The Compensation Committee and our Board believe that our executive compensation strikes the appropriate balance between utilizing
responsible, measured pay practices and effectively incentivizing our Named Executive Officers to dedicate themselves fully to
value creation for our shareholders.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 22.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accordingly,
we ask our shareholders to vote &ldquo;FOR&rdquo; the following resolution at the Annual Meeting:</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-indent: 22.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 1in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&ldquo;RESOLVED,
that the shareholders approve, on an advisory basis, the compensation of our Named Executive Officers, as disclosed pursuant to
Item 402 of Regulation S-K, including the compensation tables and any other related disclosure in the proxy statement.&rdquo;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 1in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Required
Vote and Board Recommendation</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Assuming
a quorum is present at the Annual Meeting, this proposal to approve, on an advisory basis, the compensation of our Named Executive
Officers will be approved if the votes cast in favor of this proposal exceed the votes cast opposing this proposal.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>OUR
BOARD RECOMMENDS THAT OUR SHAREHOLDERS VOTE &ldquo;FOR&rdquo;, ON AN ADVISORY BASIS, THE COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS</B>.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Proposal
No.&nbsp;5</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>ADVISORY
VOTE TO APPROVE THE INCREASE IN COMPENSATION OF OUR INDEPENDENT DIRECTORS</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are asking our shareholders to vote to approve, on a nonbinding, advisory basis, the compensation of our independent directors.
We are providing our shareholders with an opportunity to express their views on our independent directors&rsquo; compensation.
Although this advisory vote is nonbinding, our Board and the Compensation Committee will review and consider the voting results
when making future decisions regarding our independent director compensation and related compensation programs.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 22.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
encourage shareholders to read the &ldquo;Compensation of Directors&rdquo; section in this proxy statement, including the compensation
tables and the related narrative disclosure, which describes the structure and amounts of the compensation of our non-employee
directors for the fiscal year ended June&nbsp;30, 2016. The compensation of our non-employee directors is designed to enable us
to attract and retain talented and experienced directors to provide governance and stewardship to the Company.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 22.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accordingly,
we ask our shareholders to vote &ldquo;FOR&rdquo; the following resolution at the Annual Meeting:</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 1in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&ldquo;RESOLVED,
that the shareholders approve, on an advisory basis, the increase in compensation of our independent directors, as disclosed in
the proxy statement under the heading Compensation of Directors.&rdquo;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 1in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Required
Vote and Board Recommendation</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Assuming
a quorum is present at the Annual Meeting, this proposal to approve, on an advisory basis, the compensation of our independent
directors will be approved if the votes cast in favor of this proposal exceed the votes cast opposing this proposal.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>OUR
BOARD RECOMMENDS THAT OUR SHAREHOLDERS VOTE &ldquo;FOR&rdquo;, ON AN ADVISORY BASIS, THE INCREASE IN COMPENSATION OF OUR INDEPENDENT
DIRECTORS</B>.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"></P>

<!-- Field: Page; Sequence: 7; Value: 16 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt; font: normal 10pt Times New Roman, Times, Serif">&nbsp;-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->22<!-- Field: /Sequence -->-</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>ANNUAL
REPORT</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
Annual Report on Form 10-K containing audited financial statements for the fiscal year ended June&nbsp;30, 2016 accompanies this
proxy statement. Such report is not incorporated herein and is not deemed to be a part of this proxy solicitation material.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>PROPOSALS
OF SHAREHOLDERS</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to Rule 14a-8 of the SEC, proposals by shareholders and submissions by shareholders of director nominees that are intended for
inclusion in our proxy statement and proxy card and to be presented at our next annual meeting must be received by us by June
19, 2017, in order to be considered for inclusion in our proxy materials. Such proposals should be addressed to our Secretary
and may be included in next year&rsquo;s proxy materials if they comply with certain rules and regulations of the SEC governing
shareholder proposals. Proposals by shareholders, as well as shareholder nominees for director, for possible consideration at
our next annual meeting that are not intended for inclusion in our proxy materials must also be received by our Secretary no later
than June&nbsp;19, 2017. Every shareholder notice must also comply with certain other requirements set forth in our Bylaws, a
copy of which may be obtained by written request delivered to our Secretary.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>OTHER
MATTERS</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
Board knows of no other matters which will be acted upon at the Annual Meeting. If any other matters are presented properly for
action at the Annual Meeting or at any adjournment or postponement thereof, it is intended that the proxy will be voted with respect
thereto in accordance with the best judgment and in the discretion of the proxy holder.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify; text-indent: 23pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>OUR
SHAREHOLDERS ARE URGED TO PROMPTLY SUBMIT THEIR PROXY OR VOTING INSTRUCTIONS AS SOON AS POSSIBLE BY FOLLOWING THE INSTRUCTIONS
IN THE NOTICE OF INTERNET AVAILABILITY OF PROXY MATERIALS, WHICH WAS MAILED TO YOU ON OR ABOUT OCTOBER 17, 2016. IF YOU REQUEST
PRINTED COPIES OF THE PROXY MATERIALS BY MAIL, YOU CAN ALSO VOTE BY MAIL OR BY TELEPHONE.&nbsp;</B></FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0 0pt 311pt; text-indent: -11.5pt"></P>

<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR>
    <TD STYLE="vertical-align: top; width: 65%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 4%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 31%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By Order of the Board of Directors,</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">PRO-DEX, INC.</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ Alisha K. Charlton</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-left: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Corporate Secretary</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Irvine, California</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0 0pt 311pt; text-indent: -11.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0 0pt 311pt; text-indent: -11.5pt"></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SHAREHOLDERS
MAY OBTAIN, FREE OF CHARGE, A PAPER COPY OF OUR ANNUAL REPORT ON FORM 10-K FOR THE FISCAL YEAR ENDED JUNE 30, 2016, (WITHOUT EXHIBITS)
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION BY WRITING TO: INVESTOR RELATIONS, PRO-DEX, INC., 2361 MCGAW AVENUE, IRVINE,
CALIFORNIA 92614 OR CALLING (949)&nbsp;769-3200.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<!-- Field: Page; Sequence: 8; Value: 16 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt; font: normal 10pt Times New Roman, Times, Serif">&nbsp;-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->23<!-- Field: /Sequence -->-</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt/normal Times New Roman; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5in; text-align: center; text-indent: 0.5in"><I>Appendix
A</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5in; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PRO-DEX, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2016 EQUITY INCENTIVE PLAN</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ARTICLE I</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PURPOSE AND ADOPTION OF THE PLAN</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">1.1&nbsp;&nbsp;<U>Purpose</U>. The purpose of the Pro-Dex, Inc. 2016 Equity Incentive Plan (as amended from time to time, the &ldquo;Plan&rdquo;)
is to assist in attracting and retaining highly competent employees, directors and consultants, to act as an incentive in motivating
selected employees, directors and consultants of the Company and its subsidiaries to achieve long-term corporate objectives and
to enable stock-based incentive awards to qualify as performance-based compensation for purposes of the tax deduction limitations
under Section 162(m) of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">1.2&nbsp;&nbsp;<U>Adoption and
Term</U>. The Plan has been approved by the Board to be effective as of September 29, 2016, subject to the approval of shareholders
of the Company. The Plan shall remain in effect until terminated by action of the Board; provided, however, that no Awards may
be granted hereunder after the tenth anniversary of its initial effective date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ARTICLE II</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DEFINITIONS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">For the purpose of
the Plan, capitalized terms shall have the following meanings:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">2.1&nbsp;&nbsp;<U>Award</U> means
any one or a combination of Non-Qualified Stock Options or Incentive Stock Options described in Article VI, Stock Appreciation
Rights described in Article VI, Restricted Shares and Restricted Stock Units described in Article VII, Performance Awards described
in Article VIII, other stock-based Awards described in Article IX, or any other Award made under the terms of the Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">2.2&nbsp;&nbsp;<U>Award Agreement</U>
means a written agreement between the Company and a Participant or a written acknowledgment from the Company to a Participant specifically
setting forth the terms and conditions of an Award granted under the Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">2.3&nbsp;&nbsp;<U>Assumed</U>
means that pursuant to a Merger either (i) the Award is expressly affirmed by the Company, (ii) the contractual obligations represented
by the Award are expressly assumed (and not simply by operation of law) by the successor entity or its parent in connection with
the Merger with appropriate adjustments to the number and type of securities of the successor entity or its parent subject to the
Award and the exercise or purchase price thereof which at least preserves the compensation element of the Award existing at the
time of the Merger as determined in accordance with the instruments evidencing the agreement to assume the Award, or (iii) the
Award is otherwise to continue in effect following the Merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">2.4&nbsp;&nbsp;<U>Award Period</U>
means, with respect to an Award, the period of time, if any, set forth in the Award Agreement during which specified target performance
goals must be achieved or other conditions set forth in the Award Agreement must be satisfied.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">2.5&nbsp;&nbsp;<U>Beneficiary</U>
means an individual, trust or estate who or which, by a written designation of the Participant filed with the Company, or if no
such written designation is filed, by operation of law, succeeds to the rights and obligations of the Participant under the Plan
and the Award Agreement upon the Participant&rsquo;s death.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">2.6&nbsp;&nbsp;<U>Board</U> means
the Board of Directors of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in"></P>

<!-- Field: Page; Sequence: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">2.7&nbsp;&nbsp;<U>Change in Control</U>
means the occurrence of subparagraph (a), (b), (c), or (d) below or any combination of said event(s). Notwithstanding the foregoing,
the term &ldquo;Change of Control&rdquo; shall also have such additional meanings as are permitted or required under Section 409A:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(a)&nbsp;&nbsp;<U>Change of Ownership
of the Company</U>. A change of ownership of the Company occurs on the date that any one person or persons acting as a Group (as
that term is defined in Subparagraph (2) below) acquires ownership of the stock of the Company, that, together with stock held
by such person or Group, constitutes more than fifty percent (50%) of the total fair market value or total voting power of the
stock of the Company or of any corporation that owns at least fifty percent (50%) of the total fair market value and total voting
power of Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.65in">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; However, if any
person or Group is considered to own more than fifty percent (50%) of the total fair market value or total voting power of the
stock of the Company, the acquisition of additional stock by the same person or Group of persons is not considered to cause a Change
of Control. In addition, the term Change of Control shall apply if there is an increase in the percentage of stock owned by any
one person or persons, acting as a Group, as a result of a transaction in which the Company acquires its stock in exchange for
property. The rule set forth in the immediately preceding sentence applies only when there is a transfer of stock of Company (or
issuance of stock of Company) and the stock of Company remains outstanding after the transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.65in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.65in">(2) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Persons will not
be considered to be acting as a Group solely because they purchase or own stock of the Company at the same time, or as a result
of the same public offering. However, persons will be considered to be acting as a Group if they are shareholders of the Company
and it enters into a merger, consolidation, purchase or acquisition of stock or similar business transaction with another corporation.
If a person owns stock in Company and another corporation is involved in a business transaction, then the stockholder of Company
is deemed to be acting as a Group with other shareholders in the Company prior to the transaction</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.65in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(b)&nbsp;&nbsp;<U>Change in Board
of Directors</U>. The date a majority of the members of the Company&rsquo;s Board of Directors are replaced during any 12-month
period by directors whose appointment or election is not endorsed by a majority of the members of the Company&rsquo;s Board of
Directors before the date of the appointment or election.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(c)&nbsp;&nbsp;<U>Change in Ownership
of Company&rsquo;s Assets</U>. A change in the ownership of a substantial portion of Company&rsquo;s assets occurs on the date
that any person, or more than one person acting as a Group, acquires or has acquired during the 12-month period ending on the date
of the most recent acquisition by such person or persons) assets from the Company that have a total fair market value equal to
more than forty percent (40%) of the total gross fair market value of all of the assets of the Company immediately before such
acquisition or acquisitions. For this purpose, gross fair market value means the value of the assets of the Company, or the value
of the assets being disposed of, determined without regard to any liabilities associated with such assets. Notwithstanding the
foregoing, there will be no Change in Control pursuant to this Subparagraph (c) if the assets are transferred to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.65in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A shareholder
of Company (immediately before the asset transfer) in exchange for or with respect to its stock;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.65in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.65in">(ii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An entity, fifty
percent (50%) or more of the total value or voting power of which is owned directly or indirectly, by the Company;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.65in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.65in">(iii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A person, or
more than one person, acting as a Group, that owns, directly or indirectly, fifty percent (50%) or more of the total value or voting
power of all the outstanding stock of the Company; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.65in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.65in">(iv) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An entity, at
least fifty percent (50%) of the total value or voting power of which is owned, directly or indirectly, by a person described in
Subparagraph (iii) immediately above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.65in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(d)&nbsp;&nbsp;a complete liquidation
or dissolution of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in"></P>

<!-- Field: Page; Sequence: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">2.8&nbsp;&nbsp;<U>Code</U> means
the Internal Revenue Code of 1986, as amended. References to a section of the Code shall include that section and any comparable
section or sections of any future legislation that amends, supplements or supersedes said section.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">2.9&nbsp;&nbsp;<U>Committee</U>
means the Compensation Committee of the Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">2.10&nbsp;&nbsp;<U>Company</U>
means Pro-Dex, Inc. and its successors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">2.11&nbsp;&nbsp;<U>Common Stock</U>
means the common stock of the Company, no par value per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">2.12 <U>Company Voting
Securities</U> means the combined voting power of all outstanding voting securities of the Company entitled to vote generally in
the election of directors to the Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">2.13&nbsp;&nbsp;<U>Date of Grant</U>
means the date designated by the Committee as the date as of which it grants an Award, which shall not be earlier than the date
on which the Committee approves the granting of such Award.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">2.14&nbsp;&nbsp;<U>Dividend Equivalent
Account</U> means a bookkeeping account in accordance with under Section 10.17 and related to an Award that is credited with the
amount of any cash dividends or stock distributions that would be payable with respect to the shares of Common Stock subject to
such Awards had such shares been outstanding shares of Common Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">2.15&nbsp;&nbsp;&nbsp;<U>Exchange Act</U>
means the Securities Exchange Act of 1934, as amended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">2.16&nbsp;&nbsp;<U>Exercise Price</U>
means, with respect to a Stock Appreciation Right, the amount established by the Committee in the Award Agreement which is to be
subtracted from the Fair Market Value on the date of exercise in order to determine the amount of the payment to be made to the
Participant, as further described in Section 6.2(b).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">2.17&nbsp;&nbsp;<U>Fair Market
Value</U> means, on any date, (i) the closing sale price of a share of Common Stock, as reported on the Nasdaq Capital Market (&ldquo;NASDAQ&rdquo;)
(or other established stock exchange on which the Common Stock is regularly traded) on such date or, if there were no sales on
such date, on the last date preceding such date on which a sale was reported; or (ii) if shares of Common Stock are not listed
for trading on an established stock exchange, Fair Market Value shall be determined by the Committee in good faith.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">2.18&nbsp;&nbsp;<U>Incentive
Stock Option</U> means a stock option within the meaning of Section 422 of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">2.19&nbsp;&nbsp;<U>Merger</U>
means any merger, reorganization, consolidation, exchange, transfer of assets or other transaction having similar effect involving
the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">2.20&nbsp;&nbsp;<U>Non-Qualified
Stock Option</U> means a stock option which is not an Incentive Stock Option.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">2.21&nbsp;&nbsp;<U>Options</U>
means all Non-Qualified Stock Options and Incentive Stock Options granted at any time under the Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">2.22&nbsp;&nbsp;<U>Outstanding
Common Stock</U> means, at any time, the issued and outstanding shares of Common Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">2.23&nbsp;&nbsp;&nbsp;<U>Participant</U>
means a person designated to receive an Award under the Plan in accordance with Section 5.1.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">2.24&nbsp;&nbsp;<U>Performance
Awards</U> means Awards granted in accordance with Article VIII.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">2.25&nbsp;&nbsp;<U>Performance
Goals</U> are based on one or more of the following measures and intended to comply with the performance-based compensation exception
under Code Section 162(m):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%; padding-left: 0.55in"></TD>
    <TD STYLE="width: 5%; text-align: left; vertical-align: bottom"><FONT STYLE="font-family: Symbol; font-size: 10pt">&#183;</FONT></TD>
    <TD STYLE="width: 90%; text-align: justify"><FONT STYLE="font-size: 10pt">Net earnings or net income (before or after taxes)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<!-- Field: Page; Sequence: 3 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR>
    <TD STYLE="width: 5%; padding-left: 0.55in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 5%"><FONT STYLE="font-family: Symbol; font-size: 10pt">&#183;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 90%; text-align: justify"><FONT STYLE="font-size: 10pt">Earnings per share or earnings per share growth, total units, or unit growth</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR>
    <TD STYLE="width: 5%; padding-left: 0.55in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 5%"><FONT STYLE="font-family: Symbol; font-size: 10pt">&#183;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 90%; text-align: justify"><FONT STYLE="font-size: 10pt">Net sales, sales growth, total revenue, or revenue growth</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR>
    <TD STYLE="width: 5%; padding-left: 0.55in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 5%"><FONT STYLE="font-family: Symbol; font-size: 10pt">&#183;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 90%; text-align: justify"><FONT STYLE="font-size: 10pt">Net operating profit</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR>
    <TD STYLE="width: 5%; padding-left: 0.55in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 5%"><FONT STYLE="font-family: Symbol; font-size: 10pt">&#183;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 90%; text-align: justify"><FONT STYLE="font-size: 10pt">Return measures (including, but not limited to, return on assets, capital, invested capital, equity, sales, or revenue)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR>
    <TD STYLE="width: 5%; padding-left: 0.55in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 5%"><FONT STYLE="font-family: Symbol; font-size: 10pt">&#183;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 90%; text-align: left"><FONT STYLE="font-size: 10pt">Cash flow (including, but not limited to, operating cash flow, free cash flow, cash flow return on equity, and cash flow return on investment)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR>
    <TD STYLE="width: 5%; padding-left: 0.55in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 5%"><FONT STYLE="font-family: Symbol; font-size: 10pt">&#183;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 90%; text-align: justify"><FONT STYLE="font-size: 10pt">Earnings before or after taxes, interest, depreciation, and/or amortization</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Symbol"></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR>
    <TD STYLE="width: 5%; padding-left: 0.55in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 5%"><FONT STYLE="font-family: Symbol; font-size: 10pt">&#183;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 90%; text-align: justify"><FONT STYLE="font-size: 10pt">Gross or operating margins</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR>
    <TD STYLE="width: 5%; padding-left: 0.55in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 5%"><FONT STYLE="font-family: Symbol; font-size: 10pt">&#183;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 90%; text-align: justify"><FONT STYLE="font-size: 10pt">Productivity ratios</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR>
    <TD STYLE="width: 5%; padding-left: 0.55in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 5%"><FONT STYLE="font-family: Symbol; font-size: 10pt">&#183;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 90%; text-align: justify"><FONT STYLE="font-size: 10pt">Share price or relative share price (including, but not limited to, growth measures and total stockholder return)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR>
    <TD STYLE="width: 5%; padding-left: 0.55in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 5%"><FONT STYLE="font-family: Symbol; font-size: 10pt">&#183;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 90%; text-align: justify"><FONT STYLE="font-size: 10pt">Expense targets</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR>
    <TD STYLE="width: 5%; padding-left: 0.55in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 5%"><FONT STYLE="font-family: Symbol; font-size: 10pt">&#183;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 90%; text-align: justify"><FONT STYLE="font-size: 10pt">Margins</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR>
    <TD STYLE="width: 5%; padding-left: 0.55in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 5%"><FONT STYLE="font-family: Symbol; font-size: 10pt">&#183;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 90%; text-align: justify"><FONT STYLE="font-size: 10pt">Operating efficiency</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR>
    <TD STYLE="width: 5%; padding-left: 0.55in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 5%"><FONT STYLE="font-family: Symbol; font-size: 10pt">&#183;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 90%; text-align: justify"><FONT STYLE="font-size: 10pt">Customer retention or satisfaction</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR>
    <TD STYLE="width: 5%; padding-left: 0.55in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 5%"><FONT STYLE="font-family: Symbol; font-size: 10pt">&#183;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 90%; text-align: justify"><FONT STYLE="font-size: 10pt">Working capital targets</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">Without limiting the
generality of the foregoing (and to the degree consistent with Code Section 162(m)), the Committee shall have the authority, at
the time it establishes the performance objectives for any given performance period, to make equitable adjustments in the business
criteria in recognition of unusual or non-recurring events affecting the Company or its operating divisions, in response to changes
in applicable laws or regulations, or to account for items of gain, loss or expense determined to be extraordinary or unusual in
nature or infrequent in occurrence or related to the disposal of a segment of a business or related to a change in generally accepted
accounting principles, or as the Committee determines to be appropriate to reflect a true measurement of the profitability of the
Company or its operating divisions, as applicable and to otherwise satisfy the objectives of the Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">2.26&nbsp;&nbsp;<U>Plan</U> has
the meaning given to such term in Section 1.1.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">2.27&nbsp;&nbsp;<U>Purchase Price</U>,
with respect to Options, shall have the meaning set forth in Section 6.1(b).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">2.28&nbsp;&nbsp;<U>Restricted
Shares</U> means Common Stock subject to restrictions imposed in connection with Awards granted under Article VII.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">2.29&nbsp;&nbsp;<U>Restricted
Stock Unit</U> means a unit representing the right to receive Common Stock or the value thereof in the future subject to restrictions
imposed in connection with Awards granted under Article VII.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in"></P>

<!-- Field: Page; Sequence: 4 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">2.30&nbsp;&nbsp;<U>Rule 16b-3</U>
means Rule 16b-3 promulgated by the Securities and Exchange Commission under Section 16 of the Exchange Act, as the same may be
amended from time to time, and any successor rule.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">2.31&nbsp;&nbsp;<U>Stock Appreciation
Rights</U> means awards granted in accordance with Article VI.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">2.32&nbsp;&nbsp;<U>Subsidiary</U>
means a subsidiary of the Company within the meaning of Section 424(f) of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">2.33&nbsp;&nbsp;<U>Termination
of Service</U> means the voluntary or involuntary termination of a Participant&rsquo;s service as an employee, director or consultant
with the Company or a Subsidiary for any reason, including death, disability, retirement or as the result of the divestiture of
the Participant&rsquo;s employer or any similar transaction in which the Participant&rsquo;s employer ceases to be the Company
or one of its Subsidiaries. Whether entering military or other government service shall constitute Termination of Service, or whether
and when a Termination of Service shall occur as a result of disability, shall be determined in each case by the Committee in its
sole discretion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ARTICLE III</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ADMINISTRATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">3.1&nbsp;&nbsp;<U>Committee</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(a)&nbsp;&nbsp;<U>Duties and Authority</U>.
The Plan shall be administered by the Committee and the Committee shall have exclusive and final authority in each determination,
interpretation or other action affecting the Plan and its Participants. The Committee shall have the sole discretionary authority
to interpret the Plan, to establish and modify administrative rules for the Plan, to impose such conditions and restrictions on
Awards as it determines appropriate, and to make all factual determinations with respect to and take such steps in connection with
the Plan and Awards granted hereunder as it may deem necessary or advisable. The Committee shall not, however, have or exercise
any discretion that would disqualify amounts payable under Article X as performance-based compensation for purposes of Section
162(m) of the Code. The Committee may delegate such of its powers and authority under the Plan as it deems appropriate to a subcommittee
of the Committee or designated officers or employees of the Company. In addition, the full Board may exercise any of the powers
and authority of the Committee under the Plan. In the event of such delegation of authority or exercise of authority by the Board,
references in the Plan to the Committee shall be deemed to refer, as appropriate, to the delegate of the Committee or the Board.
Actions taken by the Committee or any subcommittee thereof, and any delegation by the Committee to designated officers or employees,
under this Section 3.1 shall comply with Section 16(b) of the Exchange Act, the performance-based provisions of Section 162(m)
of the Code, and the regulations promulgated under each of such statutory provisions, or the respective successors to such statutory
provisions or regulations, as in effect from time to time, to the extent applicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(b)&nbsp;&nbsp;<U>Indemnification</U>.
Each person who is or shall have been a member of the Board or the Committee, or an officer or employee of the Company to whom
authority was delegated in accordance with the Plan shall be indemnified and held harmless by the Company against and from any
loss, cost, liability, or expense that may be imposed upon or reasonably incurred by such individual in connection with or resulting
from any claim, action, suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason of
any action taken or failure to act under the Plan and against and from any and all amounts paid by him or her in settlement thereof,
with the Company&rsquo;s approval, or paid by him or her in satisfaction of any judgment in any such action, suit, or proceeding
against him or her, provided he or she shall give the Company an opportunity, at its own expense, to handle and defend the same
before he or she undertakes to handle and defend it on his or her own behalf; provided, however, that the foregoing indemnification
shall not apply to any loss, cost, liability, or expense that is a result of his or her own willful misconduct. The foregoing right
of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the
Company&rsquo;s Articles of Incorporation or Bylaws, conferred in a separate agreement with the Company, as a matter of law, or
otherwise, or any power that the Company may have to indemnify them or hold them harmless.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in"></P>

<!-- Field: Page; Sequence: 5 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ARTICLE IV</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SHARES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">4.1&nbsp;&nbsp;<U>Number of Shares Issuable</U>. The
maximum aggregate number of shares of Common Stock that may be issued pursuant to Awards shall be 1,500,000 shares of Common Stock,
all of which shares of Common Stock may be issued under the Plan as Incentive Stock Options. The foregoing share limits shall be
subject to adjustment in accordance with Section 10.7. The shares to be offered under the Plan shall be authorized and unissued
Common Stock, or issued Common Stock that shall have been reacquired by the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">4.2&nbsp;&nbsp;<U>Shares Subject
to Terminated Awards</U>. Common Stock covered by any unexercised portions of terminated or forfeited Options (including canceled
Options) granted under Article VI, Common Stock forfeited as provided in Section 7.2(a), Stock Units and other stock-based Awards
terminated or forfeited as provided in Article IX, and Common Stock subject to any Awards that are otherwise surrendered by the
Participant may again be subject to new Awards under the Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ARTICLE V</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PARTICIPATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">5.1&nbsp;&nbsp;<U>Eligible Participants</U>.
Participants in the Plan shall be such employees, directors and consultants of the Company and its Subsidiaries as the Committee,
in its sole discretion, may designate from time to time. The Committee&rsquo;s designation of a Participant in any year shall not
require the Committee to designate such person to receive Awards or grants in any other year. The designation of a Participant
to receive Awards or grants under one portion of the Plan does not require the Committee to include such Participant under other
portions of the Plan. The Committee shall consider such factors as it deems pertinent in selecting Participants and in determining
the type and amount of their respective Awards. Incentive Stock Options may only be granted to employees of the Company or its
Subsidiaries. Subject to adjustment in accordance with Section 10.7, in any calendar year, no Participant shall be granted Awards
in respect of more than 100,000 shares of Common Stock (whether through grants of Options or Stock Appreciation Rights or other
Awards of Common Stock or rights with respect thereto). Furthermore, subject to adjustment in accordance with Section 10.7, in
any calendar year, no more than a total of 75,000 shares of Common Stock may be granted as Awards under the Plan to the Company&rsquo;s
non-employee directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ARTICLE VI</B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>STOCK OPTIONS AND STOCK APPRECIATION
RIGHTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">6.1&nbsp;&nbsp;<U>Option Awards</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(a)&nbsp;&nbsp;<U>Grant of Options</U>.
The Committee may grant, to such Participants as the Committee may select, Options entitling the Participant to purchase shares
of Common Stock from the Company in such number, at such price, and on such terms and subject to such conditions, not inconsistent
with the terms of the Plan, as may be established by the Committee. The terms of any Option granted under the Plan shall be set
forth in an Award Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(b)&nbsp;&nbsp;<U>Purchase Price
of Options</U>. The &ldquo;Purchase Price&rdquo; of each share of Common Stock which may be purchased upon exercise of any Option
granted under the Plan shall be determined by the Committee; provided, however, that in no event shall the Purchase Price be less
than the Fair Market Value on the Date of Grant. In the case of an Incentive Stock Option granted to a Participant who, on the
Date of Grant owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or
its Subsidiaries, the per share exercise price shall be not less than one hundred ten percent (110%) of the Fair Market Value per
share of Common Stock on the Date of Grant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(c)&nbsp;&nbsp;<U>Designation
of Options</U>. The Committee shall designate, at the time of the grant of each Option, the Option as an Incentive Stock Option
or a Non-Qualified Stock Option.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in"></P>

<!-- Field: Page; Sequence: 6 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(d)&nbsp;&nbsp;<U>Incentive Stock
Option Share Limitation</U>. Notwithstanding an Option&rsquo;s designation as an Incentive Stock Option, an Option will qualify
as an Incentive Stock Option under the Code only to the extent the $100,000 limitation of Section 422(d) of the Code is not exceeded.
The $100,000 limitation of Section 422(d) of the Code is calculated based on the aggregate Fair Market Value (measured on the Date
of Grant) of the shares of Common Stock subject to Options designated as Incentive Stock Options which first become exercisable
in any one calendar year (under the Plan or any other plans of the Company and its Subsidiaries). For purposes of this calculation,
Incentive Stock Options shall be taken into account in the order in which they were granted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(e)&nbsp;&nbsp;<U>Rights As a
Stockholder</U>. A Participant or a transferee of an Option pursuant to Section 10.4 shall have no rights as a stockholder with
respect to Common Stock covered by an Option until the Participant or transferee shall have become the holder of record of any
such shares, and no adjustment shall be made for dividends in cash or other property or distributions or other rights with respect
to any such Common Stock for which the record date is prior to the date on which the Participant or a transferee of the Option
shall have become the holder of record of any such shares covered by the Option; provided, however, that Participants are entitled
to share adjustments to reflect capital changes under Section 10.7.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">6.2&nbsp;&nbsp;<U>Stock Appreciation
Rights</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(a)&nbsp;&nbsp;<U>Stock Appreciation
Right Awards</U>. The Committee is authorized to grant to any Participant one or more Stock Appreciation Rights. Such Stock Appreciation
Rights may be granted either independent of or in tandem with Options granted to the same Participant. Stock Appreciation Rights
granted in tandem with Options may be granted simultaneously with, or, in the case of Non-Qualified Stock Options, subsequent to,
the grant to such Participant of the related Option; provided however, that: (i) any Option covering any share of Common Stock
shall expire and not be exercisable upon the exercise of any Stock Appreciation Right with respect to the same share, (ii) any
Stock Appreciation Right covering any share of Common Stock shall expire and not be exercisable upon the exercise of any related
Option with respect to the same share, and (iii) an Option and Stock Appreciation Right covering the same share of Common Stock
may not be exercised simultaneously. Upon exercise of a Stock Appreciation Right with respect to a share of Common Stock, the Participant
shall be entitled to receive an amount equal to the excess, if any, of (A) the Fair Market Value of a share of Common Stock on
the date of exercise over (B) the Exercise Price of such Stock Appreciation Right established in the Award Agreement, which amount
shall be payable as provided in Section 6.2(c).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(b)&nbsp;&nbsp;<U>Exercise Price</U>.
The Exercise Price established under any Stock Appreciation Right granted under the Plan shall be determined by the Committee,
but in the case of Stock Appreciation Rights granted in tandem with Options shall not be less than the Purchase Price of the related
Option; provided, however, that in no event shall the Exercise Price be less than the Fair Market Value on the Date of Grant. Upon
exercise of Stock Appreciation Rights granted in tandem with options, the number of shares subject to exercise under any related
Option shall automatically be reduced by the number of shares of Common Stock represented by the Option or portion thereof which
are surrendered as a result of the exercise of such Stock Appreciation Rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(c)&nbsp;&nbsp;<U>Payment of Incremental
Value</U>. Any payment which may become due from the Company by reason of a Participant&rsquo;s exercise of a Stock Appreciation
Right may be paid to the Participant as determined by the Committee (i) all in cash, (ii) all in Common Stock, or (iii) in any
combination of cash and Common Stock. In the event that all or a portion of the payment is made in Common Stock, the number of
shares of Common Stock delivered in satisfaction of such payment shall be determined by dividing the amount of such payment or
portion thereof by the Fair Market Value on the Exercise Date. No fractional share of Common Stock shall be issued to make any
payment in respect of Stock Appreciation Rights; if any fractional share would be issuable, the combination of cash and Common
Stock payable to the Participant shall be adjusted as directed by the Committee to avoid the issuance of any fractional share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in"></P>

<!-- Field: Page; Sequence: 7 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">6.3&nbsp;&nbsp;<U>Terms of Stock
Options and Stock Appreciation Rights</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(a)&nbsp;&nbsp;<U>Conditions on
Exercise</U>. An Award Agreement with respect to Options or Stock Appreciation Rights may contain such waiting periods, exercise
dates and restrictions on exercise (including, but not limited to, periodic installments) as may be determined by the Committee
at the time of grant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(b)&nbsp;&nbsp;<U>Duration of
Options and Stock Appreciation Rights</U>. Options and Stock Appreciation Rights shall terminate upon the first to occur of the
following events:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.65in">(i) &nbsp;&nbsp;&nbsp;Expiration of
the Option or Stock Appreciation Right as provided in the Award Agreement;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.65in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.65in">(ii) &nbsp;&nbsp;Termination of
the Award on, or within a specified period after, a Participant&rsquo;s disability, retirement, death or other Termination of Service
as provided in the Award Agreement;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.65in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.65in">(iii) &nbsp;Ten years from
the Date of Grant;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.65in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.65in">(iv) &nbsp;In the case of
an Incentive Stock Option granted to a Participant who, at the time the Incentive Stock Option is granted, owns stock representing
more than ten percent (10%) of the voting power of all classes of stock of the Company or any of its Subsidiaries, five years from
the Date of Grant; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.65in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.65in">(v) &nbsp;&nbsp;Solely in the
case of a Stock Appreciation Right granted in tandem with an Option, upon the expiration of the related Option.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.65in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(c)&nbsp;&nbsp;<U>Acceleration
or Extension of Exercise Time</U>. The Committee, in its sole discretion, shall have the right (but shall not be obligated), exercisable
on or at any time after the Date of Grant, to permit the exercise of an Option or Stock Appreciation Right (i) prior to the time
such Option or Stock Appreciation Right would become exercisable under the terms of the Award Agreement, (ii) after the termination
of the Option or Stock Appreciation Right under the terms of the Award Agreement, or (iii) after the expiration of the Option or
Stock Appreciation Right; provided, however, that in no event shall the period to exercise an Option or Stock Appreciation Rights
be extended beyond the ten-year anniversary of the Sate of Grant or, in the case of an Incentive Stock Option granted to a Participant
who, at the time the Incentive Stock Option is granted, owns stock representing more than ten percent (10%) of the voting power
of all classes of stock of the Company or any of its Subsidiaries, five years from the Date of Grant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">6.4&nbsp;&nbsp;<U>Exercise Procedures</U>.
Each Option and Stock Appreciation Right granted under the Plan shall be exercised prior to the close of business on the expiration
date of the Option or Stock Appreciation Right by notice to the Company or by such other method as provided in the Award Agreement
or as the Committee may establish or approve from time to time. The Purchase Price of shares purchased upon exercise of an Option
granted under the Plan shall be paid in full in cash by the Participant pursuant to the Award Agreement; provided, however, that
the Committee may (but shall not be required to) permit payment to be made by delivery to the Company of either (a) Common Stock
(which may include Restricted Shares or shares otherwise issuable in connection with the exercise of the Option, subject to such
rules as the Committee deems appropriate) or (b) any combination of cash and Common Stock, or (c) such other consideration as the
Committee deems appropriate and in compliance with applicable law (including payment under an arrangement constituting a brokerage
transaction as permitted under the provisions of Regulation T applicable to cashless exercises promulgated by the Federal Reserve
Board, unless prohibited by Section 402 of the Sarbanes-Oxley Act of 2002). In the event that any Common Stock shall be transferred
to the Company to satisfy all or any part of the Purchase Price, the part of the Purchase Price deemed to have been satisfied by
such transfer of Common Stock shall be equal to the product derived by multiplying the Fair Market Value as of the date of exercise
times the number of shares of Common Stock transferred to the Company. The Participant may not transfer to the Company in satisfaction
of the Purchase Price any fractional share of Common Stock. Any part of the Purchase Price paid in cash upon the exercise of any
Option shall be added to the general funds of the Company and may be used for any proper corporate purpose. Unless the Committee
shall otherwise determine, any Common Stock transferred to the Company as payment of all or part of the Purchase Price upon the
exercise of any Option may again be used for awards under the Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">6.5&nbsp;&nbsp;<U>Assumption
of Grants Upon a Change in Control</U>. Upon a Change in Control where the Company is not the surviving corporation (or survives
only as a subsidiary of another corporation), unless the Board determines otherwise, all outstanding Options and Stock Appreciation
Rights that are not exercised shall be Assumed by, or replaced with comparable</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in"></P>

<!-- Field: Page; Sequence: 8 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">options by the surviving corporation (or a parent
or subsidiary of the surviving corporation), and outstanding Stock Awards shall be converted to Stock Awards of the surviving corporation
(or a parent or subsidiary of the surviving corporation); provided, that, this sentence shall not be applicable to any Options
or Stock Appreciation Rights granted to a Participant if any Change in Control results from such Participant&rsquo;s beneficial
ownership (within the meaning of Rule 13d-3 under the Exchange Act) of Common Stock or Company Voting Securities. Notwithstanding
the foregoing, in the event of a Change of Control, the Board, in its discretion, may take any of the following actions with respect
to any or all outstanding Grants: the Board may (i) determine that outstanding Options and/or Stock Appreciation Rights shall accelerate
and become exercisable, in whole or in part, upon the Change of Control or upon such other event as the Board determines, (ii)
determine that the restrictions and conditions on outstanding Stock Awards shall lapse, in whole or in part, upon the Change of
Control or upon such other event as the Board determines, (iii) require that Grantees surrender their outstanding Options and/or
Stock Appreciation Rights in exchange for a payment by the Company, in cash or stock as determined by the Board, in an amount equal
to the amount by which the then Fair Market Value of the shares of Company Stock subject to the Grantee&rsquo;s unexercised Options
and/or Stock Appreciation Rights exceeds the Exercise Price of the Options or (iv) after giving Grantees an opportunity to exercise
their outstanding Options and/or Stock Appreciation Rights, terminate any or all unexercised Options and/or Stock Appreciation
Rights at such time as the Board deems appropriate. Such surrender or termination shall take place as of the date of the Change
of Control or such other date as the Board may specify. The Board shall have no obligation to take any of the foregoing actions,
and, in the absence of any such actions, outstanding Options, Stock Appreciation Rights and Stock Awards shall continue in effect
according to their terms (subject to any assumption discussed above).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ARTICLE VII</B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>RESTRICTED SHARES AND RESTRICTED STOCK
UNITS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">7.1&nbsp;&nbsp;<U>Award of Restricted
Stock and Restricted Stock Units</U>. The Committee may grant to any Participant an Award of Restricted Shares consisting of a
specified number of shares of Common Stock issued to the Participant subject to such terms, conditions and forfeiture and transfer
restrictions, whether based on performance standards, periods of service, retention by the Participant of ownership of specified
shares of Common Stock or other criteria, as the Committee shall establish. The Committee may also grant Restricted Stock Units
representing the right to receive shares of Common Stock in the future subject to such terms, conditions and restrictions, whether
based on performance standards, periods of service, retention by the Participant of ownership of specified shares of Common Stock
or other criteria, as the Committee shall establish. With respect to performance-based Awards of Restricted Shares or Restricted
Stock Units intended to qualify as &ldquo;performance-based&rdquo; compensation for purposes of Section 162(m) of the Code, performance
targets will consist of specified levels of one or more of the Performance Goals. The terms of any Restricted Share and Restricted
Stock Unit Awards granted under the Plan shall be set forth in an Award Agreement which shall contain provisions determined by
the Committee and not inconsistent with the Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">7.2&nbsp;&nbsp;<U>Restricted
Shares</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(a)&nbsp;&nbsp;<U>Issuance of
Restricted Shares</U>. As soon as practicable after the Date of Grant of a Restricted Share Award by the Committee, the Company
shall cause to be transferred on the books of the Company, or its agent, Common Stock, registered on behalf of the Participant,
evidencing the Restricted Shares covered by the Award, but subject to forfeiture to the Company as of the Date of Grant if an Award
Agreement with respect to the Restricted Shares covered by the Award is not duly executed by the Participant and timely returned
to the Company. All Common Stock covered by Awards under this Article VII shall be subject to the restrictions, terms and conditions
contained in the Plan and the Award Agreement entered into by the Participant. Until the lapse or release of all restrictions applicable
to an Award of Restricted Shares, the share certificates representing such Restricted Shares may be held in custody by the Company,
its designee, or, if the certificates bear a restrictive legend, by the Participant. Upon the lapse or release of all restrictions
with respect to an Award as described in Section 7.2(d), one or more share certificates, registered in the name of the Participant,
for an appropriate number of shares as provided in Section 7.2(d), free of any restrictions set forth in the Plan and the Award
Agreement shall be delivered to the Participant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in"></P>

<!-- Field: Page; Sequence: 9 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(b)&nbsp;&nbsp;<U>Stockholder
Rights</U>. Beginning on the Date of Grant of the Restricted Share Award and subject to execution of the Award Agreement as provided
in Section 7.2(a), the Participant shall become a stockholder of the Company with respect to all shares subject to the Award Agreement
and shall have all of the rights of a stockholder, including, but not limited to, the right to vote such shares and the right to
receive dividends; provided, however, that any Common Stock distributed as a dividend or otherwise with respect to any Restricted
Shares as to which the restrictions have not yet lapsed, shall be subject to the same restrictions as such Restricted Shares and
held or restricted as provided in Section 7.2(a).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(c)&nbsp;&nbsp;<U>Restriction
on Transferability</U>. None of the Restricted Shares may be assigned or transferred (other than by will or the laws of descent
and distribution, or to an inter vivos trust with respect to which the Participant is treated as the owner under Sections 671 through
677 of the Code, except to the extent that Section 16 of the Exchange Act limits a Participant&rsquo;s right to make such transfers),
pledged or sold prior to lapse of the restrictions applicable thereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(d)&nbsp;&nbsp;<U>Delivery of
Shares upon Vesting</U>. Upon expiration or earlier termination of the forfeiture period without a forfeiture and the satisfaction
of or release from any other conditions prescribed by the Committee, or at such earlier time as provided under the provisions of
Section 7.4, the restrictions applicable to the Restricted Shares shall lapse. As promptly as administratively feasible thereafter,
subject to the requirements of Section 10.5, the Company shall deliver to the Participant or, in case of the Participant&rsquo;s
death, to the Participant&rsquo;s Beneficiary, one or more share certificates for the appropriate number of shares of Common Stock,
free of all such restrictions, except for any restrictions that may be imposed by law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(e)&nbsp;&nbsp;<U>Forfeiture of
Restricted Shares</U>. Subject to Sections 7.2(f) and 7.4, all Restricted Shares shall be forfeited and returned to the Company
and all rights of the Participant with respect to such Restricted Shares shall terminate unless the Participant continues in the
service of the Company or a Subsidiary as an employee until the expiration of the forfeiture period for such Restricted Shares
and satisfies any and all other conditions set forth in the Award Agreement. The Committee shall determine the forfeiture period
(which may, but need not, lapse in installments) and any other terms and conditions applicable with respect to any Restricted Share
Award.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(f)&nbsp;&nbsp;<U>Waiver of Forfeiture
Period</U>. Notwithstanding anything contained in this Article VII to the contrary, the Committee may, in its sole discretion,
waive the forfeiture period and any other conditions set forth in any Award Agreement under appropriate circumstances (including
the death, disability or retirement of the Participant or a material change in circumstances arising after the date of an Award)
and subject to such terms and conditions (including forfeiture of a proportionate number of the Restricted Shares) as the Committee
shall deem appropriate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">7.3&nbsp;&nbsp;<U>Restricted
Stock Units</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(a)&nbsp;&nbsp;<U>Settlement of
Restricted Stock Units</U>. Payments shall be made to Participants with respect to their Restricted Stock Units as soon as practicable
after the Committee has determined that the terms and conditions applicable to such Award have been satisfied or at a later date
if distribution has been deferred. Payments to Participants with respect to Restricted Stock Units shall be made in the form of
Common Stock, or cash or a combination of both, as the Committee may determine. The amount of any cash to be paid in lieu of Common
Stock shall be determined on the basis of the Fair Market Value of the Common Stock on the date any such payment is processed.
As to shares of Common Stock which constitute all or any part of such payment, the Committee may impose such restrictions concerning
their transferability and/or their forfeiture as may be provided in the applicable Award Agreement or as the Committee may otherwise
determine, provided such determination is made on or before the date certificates for such shares are first delivered to the applicable
Participant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(b)&nbsp;&nbsp;<U>Shareholder
Rights</U>. Until the lapse or release of all restrictions applicable to an Award of Restricted Stock Units, no shares of Common
Stock shall be issued in respect of such Awards and no Participant shall have any rights as a stockholder of the Company with respect
to the shares of Common Stock covered by such Award of Restricted Stock Units.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(c)&nbsp;&nbsp;<U>Waiver of Forfeiture
Period</U>. Notwithstanding anything contained in this Section 7.3 to the contrary, the Committee may, in its sole discretion,
waive the forfeiture period and any other conditions set forth in any Award Agreement</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in"></P>

<!-- Field: Page; Sequence: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt">&nbsp;</DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">under appropriate circumstances (including
the death, disability or retirement of the Participant or a material change in circumstances arising after the date of an Award)
and subject to such terms and conditions (including forfeiture of a proportionate number of shares issuable upon settlement of
the Restricted Stock Units constituting an Award) as the Committee shall deem appropriate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(d)&nbsp;&nbsp;<U>Deferral of
Payment</U>. If approved by the Committee and set forth in the applicable Award Agreement, a Participant may elect to defer the
amount payable with respect to the Participant&rsquo;s Restricted Stock Units in accordance with such terms as may be established
by the Committee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">7.4&nbsp;&nbsp;<U>Change in Control</U>.
Unless otherwise provided by the Committee in the applicable Award Agreement, in the event of a Change in Control, all restrictions
applicable to Restricted Shares and Restricted Stock Unit Awards shall terminate fully and the Participant shall immediately have
the right to the delivery in accordance with Section 7.2(d) of a share certificate or certificates evidencing a number of shares
of Common Stock equal to the full number of shares subject to each such Award (in the case of Restricted Stock) or payment in accordance
with Section 7.3(a) of a number of shares of Common Stock determined by the Committee, in its discretion, but, in the case of a
performance-based or other contingent Award, in no event less than the number of shares payable at the &ldquo;target&rdquo; level
for each such Award (in the case of Restricted Stock Units). The provisions of this Section 7.4 shall not be applicable to any
Restricted Share or Restricted Stock Unit Award granted to a Participant if any Change in Control results from such Participant&rsquo;s
beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of Common Stock or Company Voting Securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ARTICLE VIII</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PERFORMANCE AWARDS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">8.1&nbsp;&nbsp;<U>Performance
Awards</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(a)&nbsp;&nbsp;<U>Award Periods
and Calculations of Potential Incentive Amounts</U>. The Committee may grant Performance Awards to Participants. A Performance
Award shall consist of the right to receive a payment (measured by the Fair Market Value of a specified number of shares of Common
Stock, increases in such Fair Market Value during the Award Period and/or a fixed cash amount) contingent upon the extent to which
certain predetermined performance targets have been met during an Award Period. The Committee, in its discretion and under such
terms as it deems appropriate, may permit newly eligible Participants, such as those who are promoted or newly hired, to receive
Performance Awards after an Award Period has commenced.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(b)&nbsp;&nbsp;<U>Performance
Targets</U>. Subject to Section 10.18, the performance targets applicable to a Performance Award may include such goals related
to the performance of the Company or, where relevant, any one or more of its Subsidiaries or divisions and/or the performance of
a Participant in each case as may be established by the Committee in its discretion. In the case of Performance Awards to &ldquo;covered
employees&rdquo; (as defined in Section 162(m) of the Code), the targets will be limited to specified levels of one or more of
the Performance Goals. The performance targets established by the Committee may vary for different Award Periods and need not be
the same for each Participant receiving a Performance Award in an Award Period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(c)&nbsp;&nbsp;<U>Earning Performance
Awards</U>. A Participant&rsquo;s Performance Award shall be determined based on the attainment of written Performance Goals approved
by the Committee for a performance period established by the Committee (i) while the outcome for that performance period is substantially
uncertain and (ii) no more than 90 days after the commencement of the performance period to which the performance goal relates
or, if less, the number of days which is equal to 25 percent of the relevant performance period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(d)&nbsp;&nbsp;<U>Payment of Earned
Performance Awards</U>. Subject to the requirements of Section 10.5, payments of earned Performance Awards shall be made in cash
or Common Stock, or a combination of cash and Common Stock, in the</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in"></P>

<!-- Field: Page; Sequence: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt">&nbsp;</DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">discretion of the Committee. The Committee, in its sole discretion,
may define, and set forth in the applicable Award Agreement, such terms and conditions with respect to the payment of earned Performance
Awards as it may deem desirable. The Committee shall determine whether, with respect to a performance period, the applicable Performance
Goals have been met with respect to a given Participant and, if they have, shall so certify and ascertain the amount of the applicable
Performance Award. No Performance Awards will be paid for such performance period until such certification is made by the Committee.
The amount of the Performance Award determined by the Committee for a performance period shall be paid to the Participant at such
time as determined by the Committee in its sole discretion after the end of such performance period; provided, however, that a
Participant may, if and to the extent permitted by the Committee and consistent with the provisions of Section 409A of the Code,
elect to defer payment of a Performance Award.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">8.2&nbsp;&nbsp;<U>Termination
of Service</U>. In the event of a Participant&rsquo;s Termination of Service during an Award Period, the Participant&rsquo;s Performance
Awards shall be forfeited except as may otherwise be provided in the applicable Award Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">8.3&nbsp;&nbsp;<U>Change in Control</U>.
Unless otherwise provided by the Committee in the applicable Award Agreement, in the event of a Change in Control, all Performance
Awards for all Award Periods shall immediately become fully vested and payable to all Participants and shall be paid to Participants
in accordance with Section 8.1(d), within 30 days after such Change in Control. The provisions of this Section 8.3 shall not be
applicable to any Performance Award granted to a Participant if any Change in Control results from such Participant&rsquo;s beneficial
ownership (within the meaning of Rule 13d-3 under the Exchange Act) of Common Stock or Company Voting Securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ARTICLE IX</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>OTHER STOCK-BASED AWARDS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">9.1&nbsp;&nbsp;<U>Grant of Other
Stock-Based Awards</U>. Other stock-based awards, consisting of stock purchase rights (with or without loans to Participants by
the Company containing such terms as the Committee shall determine), Awards of Common Stock, or Awards valued in whole or in part
by reference to, or otherwise based on, Common Stock or dividends on Common Stock, may be granted either alone or in addition to
or in conjunction with other Awards under the Plan. Subject to the provisions of the Plan, the Committee shall have sole and complete
authority to determine the persons to whom and the time or times at which such Awards shall be made, the number of shares of Common
Stock to be granted pursuant to such Awards, and all other conditions of the Awards. Any such Award shall be confirmed by an Award
Agreement executed by the Committee and the Participant, which Award Agreement shall contain such provisions as the Committee determines
to be necessary or appropriate to carry out the intent of the Plan with respect to such Award.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">9.2&nbsp;&nbsp;<U>Terms of Other
Stock-Based Awards</U>. In addition to the terms and conditions specified in the Award Agreement, Awards made pursuant to this
Article IX shall be subject to the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(a)&nbsp;&nbsp;Any Common Stock
subject to Awards made under this Article IX may not be sold, assigned, transferred, pledged or otherwise encumbered prior to the
date on which the shares are issued, or, if later, the date on which any applicable restriction, performance or deferral period
lapses; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(b)&nbsp;&nbsp;If specified by
the Committee in the Award Agreement, the recipient of an Award under this Article IX shall be entitled to receive, currently or
on a deferred basis, interest or dividends or dividend equivalents with respect to the Common Stock or other securities covered
by the Award; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(c)&nbsp;&nbsp;The Award Agreement
with respect to any Award shall contain provisions dealing with the disposition of such Award in the event of a Termination of
Service prior to the exercise, payment or other settlement of such Award, whether such termination occurs because of retirement,
disability, death or other reason, with such provisions to take account of the specific nature and purpose of the Award.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in"></P>

<!-- Field: Page; Sequence: 3 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt">&nbsp;</DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ARTICLE X</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>TERMS APPLICABLE GENERALLY TO AWARDS
GRANTED UNDER THE PLAN</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">10.1&nbsp;&nbsp;<U>Plan Provisions
Control Award Terms</U>. Except as provided in Section 10.16, the terms of the Plan shall govern all Awards granted under the Plan,
and in no event shall the Committee have the power to grant any Award under the Plan which is contrary to any of the provisions
of the Plan, except to the extent such authority is expressly granted to the Committee pursuant to another provision of the Plan.
In the event any provision of any Award granted under the Plan shall conflict with any term in the Plan as constituted on the Date
of Grant of such Award, the term in the Plan as constituted on the Date of Grant of such Award shall control. Except as provided
in Section 10.3 and Section 10.7, the terms of any Award granted under the Plan may not be changed after the Date of Grant of such
Award so as to materially decrease the value of the Award without the express written approval of the holder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">10.2&nbsp;&nbsp;<U>Award Agreement</U>.
No person shall have any rights under any Award granted under the Plan unless and until the Company and the Participant to whom
such Award shall have been granted shall have executed and delivered an Award Agreement or received any other written Award acknowledgment
authorized by the Committee and signed by an authorized representative of the Company expressly granting the Award to such person
and containing provisions setting forth the terms of the Award.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">10.3&nbsp;&nbsp;<U>Modification
of Award After Grant</U>. No Award granted under the Plan to a Participant may be modified (unless such modification does not materially
decrease the value of the Award) after the Date of Grant except by express written agreement between the Company and the Participant,
provided that any such change (a) shall not be inconsistent with the terms of the Plan, and (b) shall be approved by the Committee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">10.4&nbsp;&nbsp;<U>Limitation
on Transfer</U>. Except as provided in Section 7.1(c) in the case of Restricted Shares, a Participant&rsquo;s rights and interest
under the Plan may not be assigned or transferred other than by will or the laws of descent and distribution, and during the lifetime
of a Participant, only the Participant personally (or the Participant&rsquo;s personal representative) may exercise rights under
the Plan. The Participant&rsquo;s Beneficiary may exercise the Participant&rsquo;s rights to the extent they are exercisable under
the Plan following the death of the Participant. Notwithstanding the foregoing, to the extent permitted under Section 16(b) of
the Exchange Act with respect to Participants subject to such Section, the Committee may grant Non-Qualified Stock Options that
are transferable, without payment of consideration, to immediate family members of the Participant or to trusts or partnerships
for such family members, and the Committee may also amend outstanding Non-Qualified Stock Options to provide for such transferability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">10.5&nbsp;&nbsp;<U>Taxes</U>.
The Company shall be entitled, if the Committee deems it necessary or desirable, to withhold (or secure payment from the Participant
in lieu of withholding) the amount of any withholding or other tax required by law to be withheld or paid by the Company with respect
to any amount payable and/or shares issuable under such Participant&rsquo;s Award, or with respect to any income recognized upon
a disqualifying disposition of shares received pursuant to the exercise of an Incentive Stock Option, and the Company may defer
payment or issuance of the cash or shares upon exercise or vesting of an Award unless indemnified to its satisfaction against any
liability for any such tax. The amount of such withholding or tax payment shall be determined by the Committee and shall be payable
by the Participant at such time as the Committee determines in accordance with the following rules:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(a)&nbsp;&nbsp;The Participant
shall have the right to elect to meet his or her withholding requirement (i) by having withheld from such Award at the appropriate
time that number of shares of Common Stock, rounded up to the next whole share, whose Fair Market Value is equal to the amount
of withholding taxes due, (ii) by direct payment to the Company in cash of the amount of any taxes required to be withheld with
respect to such Award or (iii) by a combination of shares and cash.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(b)&nbsp;&nbsp;In the case of
Participants who are subject to Section 16 of the Exchange Act, the Committee may impose such limitations and restrictions as it
deems necessary or appropriate with respect to the delivery or withholding of shares of Common Stock to meet tax withholding obligations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">10.6&nbsp;&nbsp;<U>Surrender
of Awards</U>. Any Award granted under the Plan may be surrendered to the Company for cancellation on such terms as the Committee
and the holder approve. With the consent of the Participant, the Committee may substitute a</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in"></P>

<!-- Field: Page; Sequence: 4 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt">&nbsp;</DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0">new Award under the Plan in connection
with the surrender by the Participant of an equity compensation award previously granted under the Plan or any other plan sponsored
by the Company; provided, however, that no such substitution shall be permitted without the approval of the Company&rsquo;s shareholders
if such approval is required by the rules of any applicable stock exchange.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">10.7 <U>Adjustments
to Reflect Capital Changes</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(a)&nbsp;&nbsp;<U>Recapitalization</U>.
In the event of any corporate event or transaction (including, but not limited to, a change in the Common Stock or the capitalization
of the Company) such as a merger, consolidation, reorganization, recapitalization, separation, partial or complete liquidation,
stock dividend, stock split, reverse stock split, split up, spin-off, or other distribution of stock or property of the Company,
a combination or exchange of Common Stock, dividend in kind, or other like change in capital structure, number of outstanding shares
of Common Stock, distribution (other than normal cash dividends) to shareholders of the Company, or any similar corporate event
or transaction, the Committee, in order to prevent dilution or enlargement of Participants&rsquo; rights under the Plan, shall
make equitable and appropriate adjustments and substitutions, as applicable, to or of the number and kind of shares subject to
outstanding Awards, the Purchase Price or Exercise Price for such shares, the number and kind of shares available for future issuance
under the Plan and the maximum number of shares in respect of which Awards can be made to any Participant in any calendar year,
and other determinations applicable to outstanding Awards. The Committee shall have the power and sole discretion to determine
the amount of the adjustment to be made in each case.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(b)&nbsp;&nbsp;<U>Merger</U>.
Effective upon the consummation of a Merger, all outstanding Awards under the Plan shall terminate. However, all such Awards shall
not terminate to the extent they are assumed in connection with the Merger. The Committee shall have the authority, exercisable
either in advance of any actual or anticipated Merger or at the time of an actual Merger and exercisable at the Date of Grant of
an Award under the Plan or any time while an Award remains outstanding, to provide for the full or partial automatic vesting and
exercisability of one or more outstanding unvested Awards under the Plan and the release from restrictions on transfer and repurchase
or forfeiture rights of such Awards in connection with a Merger, on such terms and conditions as the Committee may specify. The
Committee also shall have the authority to condition any such Award vesting and exercisability or release from such limitations
upon the subsequent Termination of Service of the Participant within a specified period following the effective date of the Merger.
The Committee may provide that any Awards so vested or released from such limitations in connection with a Merger shall remain
fully exercisable until the expiration or sooner termination of the Award. Any Incentive Stock Option accelerated under this Section
11.7(b) in connection with a Merger shall remain exercisable as an Incentive Stock Option under the Code only to the extent the
$100,000 dollar limitation of Section 422(d) is not exceeded.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(c)&nbsp;&nbsp;<U>Options to Purchase
Shares or Stock of Acquired Companies</U>. After any Merger in which the Company or a Subsidiary shall be a surviving corporation,
the Committee may grant substituted options under the provisions of the Plan, pursuant to Section 424 of the Code, replacing old
options granted under a plan of another party to the Merger whose shares or stock subject to the old options may no longer be issued
following the Merger. The foregoing adjustments and manner of application of the foregoing provisions shall be determined by the
Committee in its sole discretion. Any such adjustments may provide for the elimination of any fractional shares which might otherwise
become subject to any Options.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">10.8&nbsp;&nbsp;<U>No Right to
Continued Service</U>. No person shall have any claim of right to be granted an Award under the Plan. Neither the Plan nor any
action taken hereunder shall be construed as giving any Participant any right to be retained in the service of the Company or any
of its Subsidiaries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">10.9&nbsp;&nbsp;<U>Awards Not
Includable for Benefit Purposes</U>. Payments received by a Participant pursuant to the provisions of the Plan shall not be included
in the determination of benefits under any pension, group insurance or other benefit plan applicable to the Participant which is
maintained by the Company or any of its Subsidiaries, except as may be provided under the terms of such plans or determined by
the Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in"></P>

<!-- Field: Page; Sequence: 5 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt">&nbsp;</DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">10.10&nbsp;&nbsp;<U>Governing
Law</U>. All determinations made and actions taken pursuant to the Plan shall be governed by the laws of the State of Colorado
and construed in accordance therewith.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">10.11&nbsp;&nbsp;<U>No Strict
Construction</U>. No rule of strict construction shall be implied against the Company, the Committee, or any other person in the
interpretation of any of the terms of the Plan, any Award granted under the Plan or any rule or procedure established by the Committee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">10.12&nbsp;&nbsp;<U>Compliance
with Rule 16b-3</U>. It is intended that, unless the Committee determines otherwise, Awards under the Plan be eligible for exemption
under Rule 16b-3. The Board is authorized to amend the Plan and to make any such modifications to Award Agreements to comply with
Rule 16b-3, as it may be amended from time to time, and to make any other such amendments or modifications as it deems necessary
or appropriate to better accomplish the purposes of the Plan in light of any amendments made to Rule 16b-3.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">10.13&nbsp;&nbsp;<U>Captions</U>.
The captions (i.e., all Section headings) used in the Plan are for convenience only, do not constitute a part of the Plan, and
shall not be deemed to limit, characterize or affect in any way any provisions of the Plan, and all provisions of the Plan shall
be construed as if no captions have been used in the Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">10.14&nbsp;&nbsp;<U>Severability</U>.
Whenever possible, each provision in the Plan and every Award at any time granted under the Plan shall be interpreted in such manner
as to be effective and valid under applicable law, but if any provision of the Plan or any Award at any time granted under the
Plan shall be held to be prohibited by or invalid under applicable law, then (a) such provision shall be deemed amended to accomplish
the objectives of the provision as originally written to the fullest extent permitted by law and (b) all other provisions of the
Plan and every other Award at any time granted under the Plan shall remain in full force and effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">10.15&nbsp;&nbsp;<U>Amendment
and Termination</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(a)&nbsp;&nbsp;<U>Amendment</U>.
The Board shall have complete power and authority to amend the Plan at any time; provided, however, that the Board shall not, without
the requisite affirmative approval of shareholders of the Company, make any amendment which requires shareholder approval under
the Code or under any other applicable law or rule of any stock exchange which lists Common Stock or Company Voting Securities.
No termination or amendment of the Plan may, without the consent of the Participant to whom any Award shall theretofore have been
granted under the Plan, adversely affect the right of such individual under such Award.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(b)&nbsp;&nbsp;<U>Termination</U>.
The Board shall have the right and the power to terminate the Plan at any time. No Award shall be granted under the Plan after
the termination of the Plan, but the termination of the Plan shall not have any other effect and any Award outstanding at the time
of the termination of the Plan may be exercised after termination of the Plan at any time prior to the expiration date of such
Award to the same extent such Award would have been exercisable had the Plan not terminated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">10.16&nbsp;&nbsp;<U>Foreign Qualified
Awards</U>. Awards under the Plan may be granted to such employees of the Company and its Subsidiaries who are residing in foreign
jurisdictions as the Committee in its sole discretion may determine from time to time. The Committee may adopt such supplements
to the Plan as may be necessary or appropriate to comply with the applicable laws of such foreign jurisdictions and to afford Participants
favorable treatment under such laws; provided, however, that no Award shall be granted under any such supplement with terms or
conditions inconsistent with the provision set forth in the Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">10.17&nbsp;&nbsp;<U>Dividend
Equivalents</U>. For any Award granted under the Plan, the Committee shall have the discretion, upon the Date of Grant or thereafter,
to establish a Dividend Equivalent Account with respect to the Award, and the applicable Award Agreement or an amendment thereto
shall confirm such establishment. If a Dividend Equivalent Account is established, the following terms shall apply:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in"></P>

<!-- Field: Page; Sequence: 6 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt">&nbsp;</DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(a)&nbsp;&nbsp;<U>Terms and Conditions</U>.
Dividend Equivalent Accounts shall be subject to such terms and conditions as the Committee shall determine and as shall be set
forth in the applicable Award Agreement. Such terms and conditions may include, without limitation, for the Participant&rsquo;s
Account to be credited as of the record date of each cash dividend on the Common Stock with an amount equal to the cash dividends
which would be paid with respect to the number of shares of Common Stock then covered by the related Award if such shares of Common
Stock had been owned of record by the Participant on such record date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">(b)&nbsp;&nbsp;<U>Unfunded Obligation</U>.
Dividend Equivalent Accounts shall be established and maintained only on the books and records of the Company and no assets or
funds of the Company shall be set aside, placed in trust, removed from the claims of the Company&rsquo;s general creditors, or
otherwise made available until such amounts are actually payable as provided hereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">10.18&nbsp;&nbsp;<U>Adjustment
of Performance Goals and Targets.</U> Notwithstanding any provision of the Plan to the contrary, the Committee shall have the authority
to adjust any Performance Goal, performance target or other performance-based criteria established with respect to any Award under
the Plan if circumstances occur (including, but not limited to, unusual or nonrecurring events, changes in tax laws or accounting
principles or practices or changed business or economic conditions) that cause any such Performance Goal, performance target or
performance-based criteria to be inappropriate in the judgment of the Committee; provided, that with respect to any Award that
is intended to qualify for the &ldquo;performance-based compensation&rdquo; exception under Section 162(m) of the Code and the
regulations thereunder, any adjustment by the Committee shall be consistent with the requirements of Section 162(m) and the regulations
thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">10.19&nbsp;&nbsp;<U>Legality
of Issuance.</U> Notwithstanding any provision of the Plan or any applicable Award Agreement to the contrary, the Committee shall
have the sole discretion to impose such conditions, restrictions and limitations (including suspending exercises of Options or
Stock Appreciation Rights and the tolling of any applicable exercise period during such suspension) on the issuance of Common Stock
with respect to any Award unless and until the Committee determines that such issuance complies with (i) any applicable registration
requirements under the Securities Act of 1933 or the Committee has determined that an exemption there from is available, (ii) any
applicable listing requirement of any stock exchange on which the Common Stock is listed, and (iii) any other applicable provision
of state, federal or foreign law, including foreign securities laws where applicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">10.20&nbsp;&nbsp;<U>Restrictions
on Transfer.</U> Regardless of whether the offering and sale of Common Stock under the Plan have been registered under the Securities
Act of 1933 or have been registered or qualified under the securities laws of any state, the Company may impose restrictions upon
the sale, pledge, or other transfer of such Common Stock (including the placement of appropriate legends on stock certificates)
if, in the judgment of the Company and its counsel, such restrictions are necessary or desirable to achieve compliance with the
provisions of the Securities Act of 1933, the securities laws of any state, the United States or any other applicable foreign law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">10.21&nbsp;&nbsp;<U>Further Assurances.</U>
As a condition to receipt of any Award under the Plan, a Participant shall agree, upon demand of the Company, to do all acts and
execute, deliver and perform all additional documents, instruments and agreements which may be reasonably required by the Company,
to implement the provisions and purposes of the Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">10.22&nbsp;&nbsp;<U>Clawback/Repayment.
</U>All Awards shall be subject to reduction, cancellation, forfeiture or recoupment to the extent necessary to comply with (i)
any clawback, forfeiture or other similar policy adopted by the Board or Committee and as in effect from time to time; and (ii)
applicable law. Further, to the extent that the Participant receives any amount in excess of the amount that the Participant should
otherwise have received under the terms of the Award for any reason (including, without limitation, by reason of a financial restatement,
mistake in calculations or other administrative error), the Participant shall be required to repay any such excess amount to the
Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.55in">&nbsp;</P>



<P STYLE="margin: 0"></P>

<!-- Field: Page; Sequence: 7 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 2pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="margin: 0"></P>














<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font-size: 10pt; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 33%; font: 10pt Times New Roman, Times, Serif; border-top: Black 2px solid">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%; font: 10pt Times New Roman, Times, Serif; border-top: Black 2px solid">&nbsp;</TD>
    <TD STYLE="width: 66%; font: 10pt Times New Roman, Times, Serif; border-top: Black 2px solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="text-align: left; vertical-align: middle">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 20pt"><I>PRO-DEX, &nbsp;&nbsp;INC.</I></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 20pt"><I>2361&nbsp;&nbsp;MCGAW&nbsp;&nbsp;AVENUE</I></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 20pt"><I>IRVINE,&nbsp;&nbsp;CA&nbsp;&nbsp;92614</I></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 20pt">&nbsp;</P></TD>
    <TD STYLE="vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0"><FONT STYLE="font-size: 8pt"><B>VOTE BY INTERNET
        - www.proxyvote.com</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0"><FONT STYLE="font-size: 8pt">Use the Internet
        to transmit your voting instructions and for electronic delivery of information up until 11:59 P.M. Eastern Time the day
        before the cut-off date or meeting date. Have your proxy card in hand when you access the web site and follow the instructions
        to obtain your records and to create an electronic voting instruction form.</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0"><FONT STYLE="font-size: 8pt"><B>Electronic
        Delivery of Future PROXY MATERIALS</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0"><FONT STYLE="font-size: 8pt">If you would
        like to reduce the costs incurred by our company in mailing proxy materials, you can consent to receiving all future proxy
        statements, proxy cards and annual reports electronically via e-mail or the Internet. To sign up for electronic delivery,
        please follow the instructions above to vote using the Internet and, when prompted, indicate that you agree to receive
        or access proxy materials electronically in future years.</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0"><FONT STYLE="font-size: 8pt"><B>VOTE BY PHONE
        - 1-800-690-6903</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0"><FONT STYLE="font-size: 8pt">Use any touch-tone
        telephone to transmit your voting instructions up until 11:59 P.M. Eastern Time the day before the cut-off date or meeting
        date. Have your proxy card in hand when you call and then follow the instructions.</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0"><FONT STYLE="font-size: 8pt"><B>VOTE BY MAIL</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0"><FONT STYLE="font-size: 8pt">Mark, sign and
date your proxy card and return it in the postage-paid envelope we have provided or return it to Vote Processing, c/o Broadridge,
51 Mercedes Way, Edgewood, NY 11717.</FONT></P></TD></TR>
</TABLE>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 58%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 2%">&nbsp;</TD>
    <TD STYLE="width: 40%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 0.8pt; padding-left: 10pt; text-indent: -10pt"><FONT STYLE="font-size: 8pt">TO VOTE, MARK BLOCKS
    BELOW IN BLUE OR BLACK INK AS FOLLOWS:</FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: right"><FONT STYLE="font-size: 8pt">KEEP&nbsp;THIS&nbsp;PORTION&nbsp;FOR&nbsp;YOUR&nbsp;RECORDS</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<!-- Field: Rule-Page --><DIV ALIGN="CENTER" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 2px dashed; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-size: 8pt">DETACH AND
RETURN THIS PORTION ONLY&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt"><B>THIS&nbsp;&nbsp;&nbsp;&nbsp;PROXY&nbsp;&nbsp;&nbsp;&nbsp;CARD&nbsp;&nbsp;&nbsp;&nbsp;IS&nbsp;&nbsp;&nbsp;&nbsp;VALID&nbsp;&nbsp;&nbsp;&nbsp;ONLY&nbsp;&nbsp;&nbsp;&nbsp;WHEN&nbsp;&nbsp;&nbsp;&nbsp;
SIGNED&nbsp;&nbsp;&nbsp;&nbsp;AND&nbsp;&nbsp;&nbsp;&nbsp;DATED.</B></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-top: black 2px solid; border-left: black 2px solid; padding-top: 3pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-top: black 2px solid; padding-right: 0.8pt; padding-top: 3pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-top: black 2px solid; padding-right: 0.8pt; padding-top: 3pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-top: black 2px solid; padding-right: 0.8pt; padding-top: 3pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; border-top: black 2px solid; padding-top: 3pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt"><B>For</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt"><B>All</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P></TD>
    <TD STYLE="vertical-align: bottom; border-top: black 2px solid; padding-right: 0.8pt; padding-top: 3pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; border-top: black 2px solid; padding-top: 3pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt"><B>Withhold</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt"><B>All</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P></TD>
    <TD STYLE="vertical-align: bottom; border-top: black 2px solid; padding-right: 0.8pt; padding-top: 3pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; border-top: black 2px solid; padding-top: 3pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt"><B>For&nbsp;All</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt"><B>Except</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P></TD>
    <TD STYLE="vertical-align: bottom; border-top: black 2px solid; padding-right: 0.8pt; padding-top: 3pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-top: black 2px solid; padding-top: 3pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0"><FONT STYLE="font-size: 8pt">To withhold
        authority to vote for any individual nominee(s), mark &ldquo;For All Except&rdquo; and write the number(s) of the nominee(s)
        on the line below.</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P></TD>
    <TD STYLE="vertical-align: bottom; border-top: black 2px solid; padding-right: 0.8pt; padding-top: 3pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-top: black 2px solid; padding-right: 0.8pt; padding-top: 3pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-top: black 2px solid; padding-right: 0.8pt; padding-top: 3pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-top: black 2px solid; padding-right: 0.8pt; padding-top: 3pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-top: black 2px solid; padding-right: 0.8pt; padding-top: 3pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-top: black 2px solid; padding-right: 0.8pt; padding-top: 3pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-top: black 2px solid; padding-right: 0.8pt; padding-top: 3pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-top: black 2px solid; border-right: black 2px solid; padding-right: 0.3pt; padding-top: 3pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD COLSPAN="3" STYLE="vertical-align: top; border-left: black 2px solid; padding-left: 7.5pt"><FONT STYLE="font-size: 8pt"><B>The
    Board of Directors recommends you vote FOR each of the following director nominees:</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-top: black 2px solid; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-top: black 2px solid; border-right: black 2px solid; padding-right: 0.3pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-right: black 2px solid; padding-right: 0.3pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD COLSPAN="3" STYLE="vertical-align: top; border-left: black 2px solid; padding-left: 7.5pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-right: Black 2px solid; padding-right: 0.3pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-right: black 2px solid; padding-right: 0.3pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-left: black 2px solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 7.5pt"><FONT STYLE="font-size: 8pt"><B>1.</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 7.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0"><FONT STYLE="font-size: 8pt">Election of
        Directors Nominees</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Wingdings; font-size: 8pt">&#168;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Wingdings; font-size: 8pt">&#168;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Wingdings; font-size: 8pt">&#168;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin: 1pt 0.8pt 1pt 0in"><DIV STYLE="font-size: 1pt; border-top: black 2px solid; width: 100%"><FONT STYLE="font-size: 0pt">&nbsp;</FONT></DIV></DIV><!-- Field: /Rule-Page --></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-right: black 2px solid; padding-right: 0.3pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: black 2px solid; padding-left: 7.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="20" STYLE="border-right: black 2px solid; padding-right: 17.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-left: black 2px solid; padding-left: 7.5pt"><FONT STYLE="font-size: 8pt">01</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="19" STYLE="vertical-align: top; border-right: black 2px solid; padding-right: 16.8pt"><FONT STYLE="font-size: 8pt">Raymond
    E. Cabillot&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;02&nbsp;&nbsp;William J. Farrell III&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;03&nbsp;&nbsp;David C. Hovda&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;04&nbsp;&nbsp;Nicholas
    J. Swenson&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;05&nbsp;&nbsp;Richard L. Van Kirk</FONT></TD></TR>
<TR>
    <TD COLSPAN="11" STYLE="border-left: black 2px solid; padding-right: 3.3pt; padding-left: 7.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="border-right: black 2px solid; padding-right: 1.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="11" STYLE="border-left: black 2px solid; padding-right: 3.3pt; padding-left: 7.5pt"><FONT STYLE="font-size: 8pt"><B>The
    Board of Directors recommends you vote FOR each of the proposals 2 through 5.</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>For</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>Against</B></FONT></TD>
    <TD STYLE="padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 0.8pt; text-align: center"><FONT STYLE="font-size: 8pt"><B>Abstain</B></FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-right: black 2px solid; padding-right: 0.3pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: black 2px solid; padding-left: 7.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="10"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="border-right: black 2px solid; padding-right: 1.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-left: black 2px solid; padding-left: 7.5pt"><FONT STYLE="font-size: 8pt"><B>2</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="9" STYLE="vertical-align: top; padding-right: 8.8pt"><FONT STYLE="font-size: 8pt">To ratify the appointment of
    Moss Adams, LLP as our independent registered public accounting firm for the fiscal year ending June 30, 2017.</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Wingdings; font-size: 8pt">&#168;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Wingdings; font-size: 8pt">&#168;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Wingdings; font-size: 8pt">&#168;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: black 2px solid; padding-right: 0.3pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD COLSPAN="11" STYLE="border-left: black 2px solid; padding-right: 3.3pt; padding-left: 7.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="border-right: black 2px solid; padding-right: 1.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-left: black 2px solid; padding-left: 7.5pt"><FONT STYLE="font-size: 8pt"><B>3</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="9" STYLE="vertical-align: top; padding-right: 8.8pt"><FONT STYLE="font-size: 8pt">To ratify and approve the 2016
    Equity Incentive Plan.</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Wingdings; font-size: 8pt">&#168;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Wingdings; font-size: 8pt">&#168;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Wingdings; font-size: 8pt">&#168;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: black 2px solid; padding-right: 0.3pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-left: black 2px solid; padding-left: 7.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="9" STYLE="vertical-align: top; padding-right: 8.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; padding-right: 0.8pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: black 2px solid; padding-right: 0.3pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-left: black 2px solid; padding-left: 7.5pt"><FONT STYLE="font-size: 8pt"><B>4</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="9" STYLE="vertical-align: top; padding-right: 8.8pt"><FONT STYLE="font-size: 8pt">Advisory vote to approve the
    compensation of our Named Executive Officers.</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Wingdings; font-size: 8pt">&#168;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Wingdings; font-size: 8pt">&#168;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Wingdings; font-size: 8pt">&#168;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: black 2px solid; padding-right: 0.3pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-left: black 2px solid; padding-left: 7.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="9" STYLE="vertical-align: top; padding-right: 8.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; padding-right: 0.8pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: black 2px solid; padding-right: 0.3pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-left: black 2px solid; padding-left: 7.5pt"><FONT STYLE="font-size: 8pt"><B>5</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="9" STYLE="vertical-align: top; padding-right: 8.8pt"><FONT STYLE="font-size: 8pt">Advisory vote to approve the
    increase in compensation of our independent directors.</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Wingdings; font-size: 8pt">&#168;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Wingdings; font-size: 8pt">&#168;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; padding-right: 0.8pt; text-align: center"><FONT STYLE="font-family: Wingdings; font-size: 8pt">&#168;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: black 2px solid; padding-right: 0.3pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD COLSPAN="11" STYLE="border-left: black 2px solid; padding-right: 3.3pt; padding-left: 7.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="border-right: black 2px solid; padding-right: 1.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD COLSPAN="11" STYLE="vertical-align: top; border-left: black 2px solid; padding-right: 3.3pt; padding-left: 7.5pt"><FONT STYLE="font-size: 8pt"><B>NOTE:
    </B>In their discretion, the proxies are authorized to vote upon such other business as may properly come before the meeting
    or any adjournment or postponement thereof.</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-right: black 2px solid; padding-right: 0.3pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD COLSPAN="3" STYLE="vertical-align: top; border-left: black 2px solid; padding-left: 7.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-right: black 2px solid; padding-right: 0.3pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD COLSPAN="9" STYLE="border-left: black 2px solid; padding-right: 1.3pt; padding-left: 7.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="border-right: black 2px solid; padding-right: 1.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD COLSPAN="9" STYLE="vertical-align: top; border-left: black 2px solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 1.3pt 0pt 7.5pt"><FONT STYLE="font-size: 8pt">Please sign
        exactly as your name(s) appear(s) hereon. When signing as attorney, executor, administrator, or other fiduciary, please
        give full title as such. Joint owners should each sign personally. All holders must sign. If a corporation or partnership,
        please sign in full corporate or partnership name, by authorized officer.</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 1.3pt 0pt 7.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-right: black 2px solid; padding-right: 0.3pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: black 2px solid; padding-left: 7.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="5" STYLE="border-top: black 2px solid; border-right: black 2px solid; border-left: black 2px solid; padding-right: 1.05pt; padding-left: 0.75pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-top: black 2px solid; border-right: black 2px solid; padding-right: 1.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="4" STYLE="border-top: black 2px solid; border-right: black 2px solid; border-left: black 2px solid; padding-right: 1.05pt; padding-left: 0.75pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="border-top: black 2px solid; border-right: black 2px solid; padding-right: 1.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="4" STYLE="border-right: black 2px solid; padding-right: 1.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-left: black 2px solid; padding-left: 7.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-left: black 2px solid; border-bottom: black 2px solid; padding-right: 0.05pt; padding-left: 0.75pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="4" STYLE="vertical-align: bottom; border-bottom: black 2px solid; border-right: black 2px solid; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: black 2px solid; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: black 2px solid; border-right: black 2px solid; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-left: black 2px solid; border-bottom: black 2px solid; padding-right: 0.05pt; padding-left: 0.75pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="vertical-align: bottom; border-bottom: black 2px solid; border-right: black 2px solid; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: black 2px solid; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-bottom: black 2px solid; border-right: black 2px solid; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-right: black 2px solid; padding-right: -5.7pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-left: black 2px solid; border-bottom: black 2px solid; padding-left: 7.5pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: black 2px solid; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="4" STYLE="vertical-align: bottom; border-bottom: black 2px solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0"><FONT STYLE="font-size: 8pt">Signature [PLEASE
        SIGN WITHIN BOX]</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: black 2px solid; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: black 2px solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0"><FONT STYLE="font-size: 8pt">Date</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: black 2px solid; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: black 2px solid; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="4" STYLE="vertical-align: bottom; border-bottom: black 2px solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0"><FONT STYLE="font-size: 8pt">Signature (Joint
        Owners)</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: black 2px solid; padding-right: 0.8pt"></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-bottom: black 2px solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0"><FONT STYLE="font-size: 8pt">Date</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-bottom: black 2px solid; padding-right: 0.8pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-bottom: black 2px solid; border-right: black 2px solid; padding-right: -5.7pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="width: 5%"><FONT STYLE="font-size: 1">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 1">&nbsp;</FONT></TD>
    <TD STYLE="width: 32%"><FONT STYLE="font-size: 1">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 1">&nbsp;</FONT></TD>
    <TD STYLE="width: 3%"><FONT STYLE="font-size: 1">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 1">&nbsp;</FONT></TD>
    <TD STYLE="width: 8%"><FONT STYLE="font-size: 1">&nbsp;</FONT></TD>
    <TD STYLE="width: 4%"><FONT STYLE="font-size: 1">&nbsp;</FONT></TD>
    <TD STYLE="width: 6%"><FONT STYLE="font-size: 1">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 1">&nbsp;</FONT></TD>
    <TD STYLE="width: 19%"><FONT STYLE="font-size: 1">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 1">&nbsp;</FONT></TD>
    <TD STYLE="width: 4%"><FONT STYLE="font-size: 1">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 1">&nbsp;</FONT></TD>
    <TD STYLE="width: 5%"><FONT STYLE="font-size: 1">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 1">&nbsp;</FONT></TD>
    <TD STYLE="width: 2%"><FONT STYLE="font-size: 1">&nbsp;</FONT></TD>
    <TD STYLE="width: 2%"><FONT STYLE="font-size: 1">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 1">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 1">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 1">&nbsp;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<!-- Field: Page; Sequence: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 0pt solid"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 8pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 100%; border-top: Black 2px solid">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 8pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Important Notice Regarding the Availability of Proxy Materials
for the Annual Meeting:</B> The proxy statement, shareholder letter, proxy card and Annual Report on Form 10-K are available at
<U>www.proxyvote.com</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<!-- Field: Rule-Page --><DIV ALIGN="CENTER" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 2px dashed; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 90%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 4%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-top: black 2px solid; border-left: black 2px solid; padding-left: 7.5pt">&nbsp;</TD>
    <TD STYLE="border-top: black 2px solid; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="border-top: black 2px solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0; text-align: center">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0; text-align: center"><B>PRO-DEX, INC.</B>&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0; text-align: center"><B>Annual Meeting of
Shareholders</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0; text-align: center"><B>November 29, 2016
9:00 AM</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0; text-align: center"><B>This proxy is solicited by
        the Board of Directors</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0; text-align: center">&nbsp;</P></TD>
    <TD STYLE="border-top: black 2px solid; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="border-top: black 2px solid; border-right: black 2px solid; padding-right: -5.7pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-left: black 2px solid; padding-left: 7.5pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0">The undersigned hereby appoints Richard L. Van Kirk
        as attorney and proxy, with full power of substitution, to represent and vote, as designated below, all shares of Common Stock
        of Pro-Dex, Inc. held of record by the undersigned on October 3, 2016, at the Annual Meeting of Shareholders to be held at Pro-Dex,
        Inc., 2361 McGaw Avenue, on November 29, 2016, at 9:00 a.m., local time, and at any and all adjournments or postponements thereof.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0"><B>This proxy, when properly executed, will be voted
        in the manner directed herein by the undersigned shareholder. If no direction is made, this proxy will be voted &ldquo;FOR&rdquo;
        each of the director nominees in proposal 1, and &ldquo;FOR&rdquo; each of the proposals 2 through 5.</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0">&nbsp;</P></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-right: black 2px solid; padding-right: -5.7pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 2px solid; border-left: black 2px solid; padding-left: 7.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2px solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0; text-align: center">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0; text-align: center">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0; text-align: center">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0; text-align: center">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0; text-align: center">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0; text-align: center">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0; text-align: center">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0; text-align: center">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0; text-align: center"><B>Continued and to be signed
        on reverse side</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.8pt 0pt 0; text-align: center">&nbsp;</P></TD>
    <TD STYLE="border-bottom: black 2px solid; padding-right: 0.8pt">&nbsp;</TD>
    <TD STYLE="border-right: black 2px solid; border-bottom: black 2px solid; padding-right: -5.7pt">&nbsp;</TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>




</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>2
<FILENAME>prodex.jpg
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 prodex.jpg
M_]C_X  02D9)1@ ! 0   0 !  #_VP!#  $! 0$! 0$! 0$! 0$" @," @("
M @0# P(#!00%!04$! 0%!@<&!04'!@0$!@D&!P@(" @(!08)"@D("@<(" C_
MVP!# 0$! 0(" @0" @0(!00%" @(" @(" @(" @(" @(" @(" @(" @(" @(
M" @(" @(" @(" @(" @(" @(" @(" C_P  1" !! /\# 2(  A$! Q$!_\0
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M<U^-P"NI7;W%[/\ 9;0KS%"8Q+,&$A,:!!+^/_\ P1._X('RR3^$OVP/V^O
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M<V^F7=P[:;"L=M/&@4V2VDQ!7>'GD!)P /U<_P"(9S_@B;_T9-H/_A4:W_\
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MBTK_ ((V?\%9];U(Z/:?\$X?VU8KE&*;KOX=:K:P Y[330K'CCJ&Q0!]_?\
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ME$+BW:$A@LH;R[X9?';Q-^S;\(/CS^RAI7[/?[0?BK]L"Y\?_$K5?#.D:?\
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MKWLVKWFF7"K<V5LTFM>1;6]TD-RHBNY)(D6XBH [C2OVPX?$GQ<^(_@+PI\
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G/U/\Z&Z#ZC^=%% NHU.I_P ]A4E%%)!'8****8PHHHH **** /_9

end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
