Document:

Independent Contractor Agreement

 Exhibit 10.2 
 INDEPENDENT CONTRACTOR AGREEMENT 
 This INDEPENDENT CONTRACTOR AGREEMENT
(“Agreement”) is made and entered into as of April 23, 2012, by and between Pro-Dex, Inc. (the “Company”), with its principal place of business located at 2361 McGaw Ave., Irvine, California 92614, and Mark Murphy
(“Independent Contractor”), an individual with his principal place of business located at 21295 Clear Haven Drive, Yorba Linda, CA 92886. 
 RECITALS 
 WHEREAS, Independent Contractor served as the Company’s
Chief Executive Officer and President through April 20, 2012 and therefore possesses knowledge and experience of value to the Company; and 
 WHEREAS, the Company desires to engage the services of Independent Contractor on a non-exclusive, short-term basis to assist with transitioning a new executive in these positions. 

AGREEMENT 
 NOW, THEREFORE, for and in consideration of the premises and the mutual promises, covenants and agreements hereinafter set forth, Company and Independent Contractor agree as follows: 

1. Engagement. The Company hereby engages the services of Independent Contractor, and Independent Contractor agrees to provide, the services
described further herein. 
 2. Term and Termination. 
 2.1 Term. The term of this Agreement shall be from April 23, 2012 through October 23, 2012 (the “Term”), unless earlier terminated as provided herein, or unless extended by mutual
agreement expressed in writing signed by both parties prior to the expiration of the Term. 
 2.2 Termination. Notwithstanding
anything in this Agreement to the contrary: 
 2.2.1 The Term may be terminated by either party at any time
without advance notice, upon a material breach by the other party of any of its or his obligations hereunder; and 
 2.2.2 The Term may be terminated without cause by either party upon three (3) days written notice to the other. 
 3. Fees and Expenses; Services. 
 3.1 Fees. During the Term, the
Company shall pay Independent Contractor as follows: 
 3.1.1 For services performed during the Term, the
Company will pay Independent Contractor at the rate of Five Thousand Dollars ($5,000) per month (prorated for any partial month resulting from the termination of the Term prior to its expiration or otherwise), payable on the twenty-third day of each
month, with the first payment being made on May 23, 2012 and the last payment being made on October 23, 2012, for a total consulting fee of Thirty Thousand Dollars ($30,000). Independent Contractor will be responsible to provide up to
forty (40) hours of consulting time per month for this flat fee, but the Company’s failure to require this number of hours shall not relieve it of its obligation to pay this minimum fee. Unused hours during any month will not be carried
forward to any subsequent month. 

  
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 3.1.2 In the event Company requests, and Independent Contractor performs
services for Company during the Term, in excess of the forty (40) hours in any one month, the Company will pay $200 per hour for each such excess hour of service performed. Such payment will be made within two (2) weeks of the submission
of the report of hours incurred as described in Section 4.1. 
 3.2 Supplies and Equipment. Except to the
extent that the Company may determine it to be more convenient for Independent Contractor to use equipment and supplies already owned by the Company at site(s) where Independent Contractor is performing services, Independent Contractor shall be
responsible for furnishing, at his expense, all equipment and supplies necessary for the provision of his or his services hereunder. 
 4.
Additional Requirements for Services to Be Performed. 
 4.1 Reporting. Independent Contractor shall regularly
report, but no less than weekly during the Term, on the progress of completion of tasks, and the hours incurred in performing such tasks, to Michael Berthelot, or any other Company representative designated by him. 

4.2 Best Efforts. Independent Contractor agrees to use his best efforts in providing services under the terms of this Agreement.

 4.3 No Subcontracting. Independent Contractor is being engaged to perform personal services within his asserted areas
of professional expertise, and shall not delegate or subcontract any portion of the services to be performed hereunder. 
 5. Independent
Contractor Relationship. 
 5.1 No Employment Relationship. The Company and Independent Contractor each expressly
agree and understand that they are creating an independent contractor relationship, and that Independent Contractor shall not be considered an employee of the Company for any purpose. Independent Contractor is not entitled to receive or participate
in any medical, retirement, vacation, paid or unpaid leave, or other benefits provided by the Company to its employees. Independent Contractor is exclusively responsible for all Social Security, self-employment, and income taxes, disability
insurance, workers’ compensation insurance, any other statutory benefits otherwise required to be provided to employees, and all fees and licenses, if any, required for the performance of the services hereunder. Immediately upon entering into
this Agreement, Independent Contractor agrees to provide the Company with a completed and signed Form W-9, Request for Taxpayer Identification Number and Certification. Company will report all income to Independent Contractor on IRS Form 1099.
Independent Contractor understands and agrees that he is solely responsible for all income and/or other tax obligations, if any, including but not limited to all reporting and payment obligations, if any, which may arise as a consequence of any
payment under this Agreement. Independent Contractor agrees to indemnify the Company for any claims or obligations asserted to the contrary by Independent Contractor. 
 5.2 Nonexclusivity of Services Other Than to Competitors. This Agreement shall not restrict Independent Contractor from performing services for other clients or businesses; provided, however, that
during the Term of this Agreement, Independent Contractor shall not apply, bid, or contract for; or undertake any employment, independent contractor work, or consulting work with, any competitor of Company. The determination of which businesses
constitute “competitors” of Company shall be solely within the exclusive discretion of the Company. 

  
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 6. Conflicts of Interest and Ethical Conduct. 

6.1 Performance of Services for Competitors. Independent Contractor will notify the Company immediately if, during the Term, he
engages, or proposes to engage, in the performance of services for any competitor of Company, or any vendor to or customer of the Company. If Independent Contractor performs services, whether as an employee or an independent contractor, for a
competitor of Company during the Term of this Agreement, Company may terminate this Agreement immediately and without further obligation. Additionally, to avoid the appearance or existence of a conflict of interest, during the Term, Independent
Contractor must fully disclose in advance to Company the terms of any proposed or actual services for a vendor or customer of Company, and Company shall have the right in its sole discretion to disapprove the transaction on conflict of interest
grounds, or alternatively to terminate this Agreement immediately and without further obligation to Independent Contractor. 

6.2 Compliance with Applicable Laws. Independent Contractor, in his performance under this Agreement, shall comply with all
applicable federal, state, and local laws and regulations. 
 6.3 Solicitation of Company Personnel. Independent
Contractor agrees to refrain from any solicitation or recruitment (directly or indirectly) of any of Company’s employees during the term of this Agreement and for a period after the expiration or termination of this Agreement equal in duration
to the duration of this Agreement. General solicitation, not directed at Company’s employees, will not constitute a violation of this Section. 
 6.4 Conditions Imposed by Company’s Customers or Vendors. Company’s customers or vendors may from time to time impose restrictions or conditions, including conditions of confidentiality,
on Company and personnel working with the Company. Independent Contractor agrees that such terms and conditions, of which he has been notified in writing, form an integral part of this Agreement, and Independent Contractor covenants and agrees to
accept and comply with such additional terms and conditions. 
 7. Confidentiality and Non-Disclosure. 

7.1 Confidential Information Defined. As used herein, the term “Confidential Information” shall mean and include,
without limitation, any and all trade secrets, secret processes, marketing data, marketing plans, marketing strategies, customer names and addresses, prospective customer lists, data concerning Company’s products and methods, computer software,
files and documents, and any other information of a similar nature disclosed to Independent Contractor or otherwise made known to him as a consequence of or through his relationship with the Company. 

7.2 Confidential Information Belongs to Company. All notes, data reference materials, memoranda, documentation and records in any
way incorporating or reflecting any of the Confidential Information shall belong exclusively to Company, and Independent Contractor agrees to return the originals and all copies of such materials in his possession, custody or control to the Company
upon request or upon termination or expiration of the Term of this Agreement. 
 7.3 Confidentiality Obligation.
Independent Contractor agrees during the Term of this Agreement and thereafter to hold in confidence and not to directly or indirectly reveal, report, publish, disclose or transfer any of the Confidential Information to any other person or entity,
or utilize any of the Confidential Information for any purpose, except in the course of services performed under this Agreement. 
 7.4 Injunctive Relief in Event of Breach. Because of the unique nature of the Confidential Information, the undersigned understands and agrees that Company will suffer irreparable harm in the event
that Independent Contractor fails to comply with any of his obligations under this Section 7, and that monetary damages will be inadequate to compensate Company for such breach. Accordingly, Independent Contractor agrees that Company
will, in addition to any other remedies available to it at law or in equity, be entitled to injunctive relief to enforce the terms of this Section 7. 

  
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 8. Representations and Warranties. Independent Contractor hereby represents and warrants that, as of
the date hereof and continuing throughout the term of this Agreement, he is not and will not be in any way restricted or prohibited, contractually or otherwise, from entering into this Agreement or performing the services contemplated hereunder.

 9. Miscellaneous. 
 9.1 Entire Agreement. This Agreement contains the entire agreement of the parties with respect to the subject matter hereof and supersedes and replaces any oral or written agreements heretofore
entered into between the parties. This Agreement cannot be modified, or any performance or condition waived, in whole or in part, except by a writing signed by the party against whom enforcement of the modification or waiver is sought. The waiver of
any breach of any term or condition of this Agreement shall not be deemed to constitute the waiver of any other breach of the same or any other term or condition. 
 9.2 Interpretation, Severability and Reformation. Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be valid and effective under applicable law. If any
provision of this Agreement shall be unlawful, void or for any reason unenforceable, it shall be deemed separable from, and shall in no way affect the validity or enforceability of, the remaining provisions of this Agreement, and the rights and
obligations of the parties shall be enforced to the fullest extent possible. 
 9.3 Survival. To the extent consistent
with this Agreement, all representations, warranties and post-termination obligations contained in this Agreement shall survive the expiration of the Term, or the termination, of this Agreement. 

9.4 Binding Effect. This Agreement shall be binding upon and inure to the benefit of Company and to any of its successors. This
Agreement is not assignable by Independent Contractor, but shall be binding upon and, to the extent provided for in this Agreement, inure to the benefit of Independent Contractor’s heirs, executors, administrators and legal representatives.

 9.5 Execution in Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be
deemed an original, but all of which shall constitute one and the same instrument. 

  
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 9.6 Governing Law. The validity and effect of this Agreement shall be governed by and
construed and enforced in accordance with the laws of the State of California without reference to conflicts of laws principles. 
 IN WITNESS WHEREOF, the parties hereto have executed this Independent Contractor Agreement as of the date first above written. 

 

							
				
	 COMPANY:
	 		 	By:	 	/s/ Harold A. Hurwitz
		 		 		 	 Harold A. Hurwitz

		 		 		 	 Chief Financial Officer

				
		 		 	By:	 	/s/ William L. Healey
		 		 		 	 William L. Healey

		 		 		 	 Chairman of the Board

				
	 INDEPENDENT CONTRACTOR:
	 		 		 	/s/ Mark Murphy
		 		 		 	 Mark Murphy

  
 -5-Employment Arrangement

 Exhibit 10.3 
 PERSONAL AND CONFIDENTIAL 
 April 20, 2012 

Michael J. Berthelot 
 P O Box 7277 

Rancho Santa Fe, CA 92067 
 Dear Mike:

 On behalf of the Board of Directors (the “Board”) I am pleased to extend this employment letter agreement concerning your employment
as Chief Executive Officer of Pro-Dex Inc. (the “Company”) as an “at-will” employee, serving at the pleasure of the Board and in accordance with the Company’s Bylaws and applicable law. As Chief Executive Officer, you will
perform the duties assigned to you from time to time by the Board. You may also be required to serve as the Chief Executive Officer and/or a director or other officer of subsidiaries or other related entities of the Company with no additional
compensation. You will be based out of our Irvine, California office. 
 Salary 
 Your bi-weekly salary will be $11,538 which equals $300,000 on an annualized basis, subject to increases from time to time at the discretion of the Board, and subject to reductions that do not constitute
a “material reduction in your salary” as defined below. 
 Benefits 
 You will be eligible to participate in benefits including health, dental, disability and life insurance, qualified retirement plans, and optional employee benefits which, by Board approval, are or become
available to all Company employees, except you will not participate in the Company-wide employee quarterly bonus/non-qualified profit sharing plan. You will receive the greater of (i) Paid Time Off equal to four weeks per year or (ii) Paid
Time Off in accordance with the plan established for senior executives of the Company. 
 You will receive reimbursement for ordinary and
necessary business expenses incurred in the ordinary course of business, consistent with the Company’s policies applicable to all employees (including, without limitation, the requirement to provide appropriate supporting documentation) and
subject to review by the Company’s finance department and Audit Committee. 
 Bonus/Incentive Compensation 

Commencing with the fiscal year beginning July 1, 2012 you will be eligible to participate in all Company created and Board approved incentive
compensation plans open to participation for 

 
senior executives of the Company, subject to the terms and provisions of the applicable plan documents covering any such plans. The terms of such plans may be changed from time to time at the
discretion of the Board. Currently, the Company offers an Annual Incentive Plan and a Long Term Incentive Plan. Copies of the related plan documents have been attached hereto as Exhibits A and Exhibit B respectively. 

Equity Grants 
 You will be permitted to
participate in any program of stock option or other equity grants which the Company may from time to time provide key employees. Such grants are made under the terms and provisions of the Second Amended and Restated 2004 Stock Option Plan in varying
amounts to individual participants based upon their perceived impact upon the long term success of the Company and are made at the sole and absolute discretion of the Board, generally at the first Board meeting following the filing of the
Company’s Form 10-K for the previous fiscal year. Subject to the foregoing, your initial grant under this program will be 200,000 options to purchase the Company’s common shares at the closing price for the Company’s shares as of the
last business day immediately prior to the grant date in which a closing price is available and such options will vest in their entirety on the third anniversary of the grant date. The options will have a term of ten years from the grant date and to
the maximum extent permissible under the relevant Internal Revenue Service regulations, will be made as Incentive Stock Options. The initial grant of options will occur on the sixth trading day following the release of the Company’s financial
results for the quarter ended March 31, 2012. 
 Term 
 This letter agreement will terminate on the third anniversary of its execution (which shall be deemed to be the date first set forth on the top of this document) but may be extended by a written agreement
executed by the parties and approved by the Board of Directors. Your employment is at-will, and the term of this letter agreement does not establish a specified term of employment with the Company. Upon the termination of this letter agreement
during your employment, without an express written extension executed by the parties and approved by the Board of Directors, your at-will employment with the Company will continue until terminated by the Company or by you, but shall no longer be
controlled by the terms and provisions of this letter agreement, and any obligations of the Company pursuant to this letter agreement, following its termination, shall be without force or effect. 

Termination/Severance 
 In the event that
your employment with the Company terminates for any reason, the Company shall pay you your (i) salary up through the date of termination (including any accrued but unused Paid Time Off remaining as of the termination date), plus; (ii) any
Annual Incentive Plan or Long Term Incentive Plan awards (or prorated portion thereof) actually earned based on existing Board-established criteria and the terms of such bonus plans, but not yet paid as of the termination date, each of which shall
be paid less applicable withholding for taxes as required by law. You shall also receive reimbursement for any ordinary and necessary business expenses outstanding as of the date of termination. 

 In addition to the above, in the event you are terminated involuntarily by the Company without
“Cause” or in the event that you resign for “Good Reason” each as defined below, the Company shall pay you severance compensation (the “Severance Payment”) in accordance with the Company’s general severance
policy in effect at that time (the “Severance Policy”). The full Severance Payment will be paid in accordance with the terms and conditions set forth in the Severance Policy. You hereby acknowledge that such Severance Payment will
be the total and sole remedy for any claims by you, known or unknown, arising from your employment with the Company or the termination thereof, and you will be required to execute a written separation agreement with the Company, substantially in the
form required by the Severance Policy, if applicable, otherwise, in the form and content of those agreements entered into by other employees leaving the Company, containing a general release of claims against the Company in form and content
acceptable to both you and the Company and our respective counsel. However, the separation agreement will not alter your rights under the Indemnification Agreement between you and the Company, indemnification provisions of the Company’s
Articles of Incorporation and/or Bylaws (if any), or the Company’s insurance for Officers and Directors. 
 As used herein, the term
“Cause” shall mean termination by the Company due to: 
  

	 	(i)	your inability or failure to adequately perform your duties with the Company; 

 

	 	(ii)	your failure to substantially follow and comply with the specific and lawful directives of the Board; 

 

	 	(iii)	The Board’s determination of your commission of an act of fraud or dishonesty; your indictment or plea of no contest in any state or federal jurisdiction for
any felony, or any misdemeanor crime involving dishonesty, moral turpitude, or which has, or is reasonably likely to have, an adverse effect on the Company’s image; gross misconduct; or your material violation of any material written policy,
guideline, code, handbook or similar document governing the conduct of directors, officers or employees of the Company or its related entities; however, if it is later determined that you did not violate the Company’s policies or
commit such acts as listed in this paragraph, your termination will deemed to have occurred for without “Cause”; or 

  

	 	(iv)	a material breach by you of the terms of this letter agreement. 

 As used herein, the term resignation for “Good Reason” shall mean your resignation due to: 
  

	 	(i)	a material reduction in your salary as set forth herein or failure of the Company to pay any amount owing to you hereunder when due. For purposes of this letter the
term “material reduction in your salary” shall mean an involuntary reduction of greater than twenty percent (20%) total from your maximum base salary for a consecutive period of more than six (6) months but shall not include an
“across the board” reduction of salary or benefits made applicable to substantially all Company employees; 

	 	(ii)	the Company’s requiring you to be based full time in any office or location outside of a one hundred (100) mile radius from your current residence in Rancho
Santa Fe, California; 

  

	 	(iii)	a material diminution in the scope of your authority, duties, and responsibilities, including the assignment of duties inconsistent with the position of a Chief
Executive officer of a publicly traded company; 

  

	 	(iv)	this Agreement is not renewed or a new employment agreement is not entered into within ninety (90) days prior to of the expiration of this Agreement or any renewal
thereof; 

 or 
  

	 	(iii)	a material breach by the Company of the terms of this letter agreement. 

 In case of a claim of “Cause” for termination, the Board shall promptly notify you in writing and in reasonable detail of the existence of such Cause, and if the basis of such claim is
reasonably susceptible of cure and in fact is fully cured within thirty (30) days of your receipt of such notice, it shall no longer be grounds for termination with “Cause” for resignation. In case of your claim of resignation for
“Good Reason,” your resignation must occur within a limited period of time not to exceed two (2) years following the initial event giving rise to the Good Reason, and you must notify the Company in writing and in reasonable detail of
the event or condition constituting “Good Reason” within thirty (30) days of the initial existence of such event or condition, specifying that you intend to terminate your employment for such Good Reason and specifying the facts and
circumstances constituting Good Reason. If the Company remedies the specified condition within thirty (30) days after receipt of such notice, it shall no longer be grounds for your resignation for “Good Reason.” 

The Board has approved a Change of Control Agreement for you to enter into with the Company, the form of which is attached to this letter as Exhibit C.
Upon a change of control (as defined in the Change of Control Agreement) and certain other conditions being met, you will receive certain payments in accordance with the terms and provisions of the Change of Control Agreement. 

Indemnification 
 The Company will
continue its commitment to indemnify you in accordance with the Company’s standard Indemnification Agreement for its officers and directors (which you have previously executed in your capacity as an officer and/or director of the Company) and
any such provisions concerning indemnification under its Articles of Incorporation or Bylaws. 
 At Will Employment; Other 

By entering into this letter agreement, you confirm your understanding that your employment will be on an “at-will” basis meaning that either
you or the Company may terminate the employment relationship at any time for any reason with or without notice or Cause, and that neither you nor the Company has entered into any other agreement regarding the duration of

 
your employment. this letter agreement represents the full and exclusive understanding between us of the matters set forth herein and supersedes fully any prior agreement between you and the
Company. There is no other agreement, written or oral, which governs the matters described herein. Any amendment to this letter agreement must be in writing, and must be executed by you and by an authorized representative of the Company’s
Board. 
 Please sign both copies of this letter to indicate your acceptance of this offer and retain one copy for your records and return the
second copy to us. 
  

					
	Pro-Dex, Inc.	 		 	
			
	 /s/ William Healey
	 		 	 /s/ Michael J. Berthelot

			
	William Healey	 		 	Michael J. Berthelot
	Chairman on behalf of	 		 	
	The Board of Directors	 		 	
			
	 /s/ Harold A. Hurwitz
	 		 	
	Harold A. Hurwitz, CFO

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