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                                                                   Exhibit 10.37

                        KEWAUNEE SCIENTIFIC CORPORATION
                                FISCAL YEAR 1998
                              INCENTIVE BONUS PLAN



The Fiscal Year 1998 Incentive Bonus Plan (the Plan) will provide for a bonus
pool and bonus payouts based upon achievement of various levels of pre-tax
earnings (after bonus accruals) for the year and other conditions described
herein, as approved by the Company's Board of Directors.  The Plan is proposed
as a one-year plan for Fiscal Year 1998.

The provisions of the Plan are:

1.   Eligibility of Participants to Share in the Bonus Pool
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     a.  Eligible participants of the Plan will be nominated by the President
         and approved by the Board of Directors, upon recommendation by the
         Compensation Committee. The bonus potential percentages for each
         participant in the Plan will also be approved by the Board of
         Directors, upon recommendation by the Compensation Committee.

     b.  Each participant will be eligible to share in the pool up to the
         specified percentage of his or her May 1, 1997 base salary.

     c.  In addition to individuals reporting directly to the President,
         managers fulfilling the following criteria are eligible to participate
         in the Plan:

         1.  Salary Grade 14 or above.
         2.  Seniority of one year or more.
         3.  Is not currently in another incentive plan (e.g., sales plan).
         4.  Is a direct report to a direct report to the President, or is a
             manager recommended by the President.

     d.  Participants in the Plan and their applicable bonus potential amounts
         are shown on Exhibits III, IV, and V to the Company's F.Y. 1998 Bonus
         Schedules (all Exhibits referred to in this Plan are exhibits to such
         Schedules).

2.   Building of a Bonus Pool
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     a.  Division Pools
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         .   The divisions (the Laboratory Products Group and the Technical
             Products Group) will start to accrue pools for potential bonus
             payouts once pre-tax operating earnings of each division reach the
             amounts shown as Goal 1 on Exhibits III 
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             and IV, and maximum incentive bonus payouts will be accrued and
             available for payout based upon the guidelines shown on those
             exhibits.

     b.  Non-divisional Corporate Pool
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         .   A pool will start accumulating once pre-tax earnings reach the
             amounts shown on Exhibit V, and maximum bonus payouts will be
             accrued and available for payout based upon the guidelines shown on
             that exhibit.


3.   Bonus Payout Conditions
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         .   If the Company achieves pre-tax earnings less than the amount shown
             as Goal 1 on Exhibit V, no awards will be paid to any non-
             divisional corporate employee, except in the discretion of the
             Board of Directors, upon recommendation by the Compensation
             Committee.

         .   If a division achieves pre-tax earnings less than the amounts shown
             for it as Goal 1 on Exhibits III or IV, no awards will be paid to
             its employees except in the discretion of the Board of Directors,
             upon recommendation by the Compensation Committee.

         .   If a division achieves pre-tax earnings equal to or greater than
             Goal 1 for that division, but the Company does not achieve the
             amount shown as F.Y. 1998 Planned Consolidated Pre-tax Earnings on
             Exhibit I, awards, both fixed and discretionary, earned on a
             divisional level will be paid to all eligible divisional employees
             at 75% of their bonus otherwise earned.

         .   Beginning with the achievement of Goal 1, the bonus potential
             percentage for each participant is linear with the increase in pre-
             tax earnings, up to the individual's maximum bonus potential
             percentage.

         .   Positive or negative financial adjustments outside the control of
             management (such as, but not limited to, proceeds from insurance
             claims, gains or losses from the sale of capital assets, adoption
             of new generally accepted accounting pronouncements, etc.) will be
             assessed by the Board of Directors and the pre-tax earnings under
             the Plan may be adjusted for these items.

         .   Any portion of the bonus pool not awarded to participants will be
             retained by the Company.

         .   If a participant transfers between performance entities during the
             year, his or her incentive compensation will be based on the
             performance of the respective entities on a pro rata basis from his
             or her transfer date as determined by the President.

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         .   A participant must be an employee of the Company on the day of the
             bonus payout to be eligible to receive a bonus. In unusual
             circumstances, however, the Board of Directors, upon recommendation
             by the Compensation Committee, may grant a discretionary bonus.

         .   The Board of Directors, upon recommendation by the Compensation
             Committee, may approve the pro rata participation of a participant
             who joins the Company or who is appointed to a key position within
             the Company after the outset of the Plan year, with a pro rata
             increase in the bonus pool.

4.   Participant's Bonus Potential
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     Each participant's bonus potential will be comprised of the following:

         .   A Fixed Bonus equal to 75% of each participant's bonus potential
             will be based on achievement of corporate or divisional pre-tax
             earnings goals, as set forth in the Plan, and

         .   A Discretionary Bonus up to the remaining 25% of each participant's
             bonus potential will be calculated taking into account the
             participant's MBO achievements and other relevant factors during
             the year. The discretionary portion of each participant's bonus
             will take into account the participant's achievement of management
             goals established, and weighted, early in F.Y. 1998 and approved by
             the President. The degree of achievement of these goals will be
             recommended by each participant's manager prior to April 30, 1998
             and the discretionary bonus, if any, will then be determined and
             awarded at the discretion of the Board of Directors, upon
             recommendation by the President and the Compensation Committee.

5.   The Plan may be amended at any time by the Board of Directors.

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