Company: PDEX
Filing Date: 2025-10-07
Form Type: DEF 14A
Source: 0001079973-25-001567
Chunk: 20

Company: PRO DEX INC
Filing Date: 2025-10-07
Form: DEF 14A
Chunk 20
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 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’s report concerning such matters and their mitigation, to ensure that each
plan is properly monitored and evaluated.

Compensation Committee Philosophy

Our compensation philosophy
is predicated upon the following concepts:

| · | 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.                            |

| · | We pay for sustained performance. Executive officers are rewarded based                                                                     
 upon Company performance and individual performance. Company 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, cash flow, and stock price.       |

| · | 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.                                                                                                                                   |

| · | We believe that employees should understand the performance evaluation and 
 pay administration process.                                                |

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; discretionary bonuses upon evaluation of Company and personal performance; performance awards generally
payable in shares of Common Stock upon the satisfaction of various service periods and the market price of our Common Stock achieving
certain pre-determined prices; stock options; and, a package of benefits similar in scope and nature to those offered to all our other
employees. Additionally, all employees, including the Named Executive Officers, are eligible to participate in our 2014 Employee Stock
Purchase Plan (the “ESPP”), which allows employees to purchase shares of Common Stock from us at 15% discount from the applicable
market price as calculated under the terms of the ESPP.

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’s risk analysis and the Compensation Committee’s belief that the