Document:

PROMISSORY
NOTE

    

    THIS NOTE
HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, ASAMENDED (THE “ACT”),
OR THE SECURITIES LAWS OF ANY STATE AND MAY NOTBE SOLD, TRANSFERRED OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF ANYEFFECTIVE REGISTRATION STATEMENT UNDER THE ACT
OR AN EXEMPTIONTHEREFROM UNDER THE ACT, THE RULES AND REGULATIONS THEREUNDERAND
APPLICABLE STATE LAWS.

    

    
      	
              Issue
      Date: August 23, 2007

            	
              Original
      Principal Amount: $1,000,000

            

    

    

    FOR VALUE
RECEIVED, NuGen Mobility, a Delaware corporation with its principalplace of
business at 44645 Guilford Drive, Suite 201, Ashburn, VA 20147 (“Maker”),
herebypromises to pay to the order of New Generation Motors Corporation, a
Delaware corporation with itsexecutive offices at 44645 Guilford Drive, Suite
201, Ashburn, Virginia 20147 (“Holder”) (or such otheraddress as Holder may
specify by written notice to Maker), the principal amount of One Million
Dollars($1,000,000), together with simple interest thereon until paid in full at
the rate of six percent (6%) perannum.

    

    1.
Payment of Principal and Interest. Payments of principal plus interest on the
unpaid principal balance of this Promissory Note (the “Note”) outstanding from
time to time shall be payable in accordance with the following:

    

    (a)
Schedule of Payments. Subject to Section 1(b), Maker shall make payments on the
Note pursuant to the following schedule:

    

    (i) Beginning in the second full
quarter following the Closing Date, Maker shall make quarterly payments on the
Note, each in an amount equal to the product of (A) two hundredths (.02)
multiplied by (B) the amount equal to the Gross Revenues earned in such calendar
quarter during the remainder of calendar year 2007;

    

    (ii) Maker shall make quarterly
payments on the Note, each in an amount equal to the product of (A)
three-hundredths (.03) multiplied by (B) the amount equal to the Gross Revenues
earned in such calendar quarter during calendar year 2008;

    

    (iii) Maker shall make quarterly
payments on the Note, each in an amount equal to the product of (A)
four-hundredths (.04) multiplied by (B) the amount equal to the Gross Revenues
earned in such calendar quarter during calendar year 2009;

    

    (iv) Maker shall make quarterly
payments on the Note, each in an amount equal to the product of (A)
five-hundredths (.05) multiplied by (B) the amount equal to the Gross Revenues
earned in such calendar quarter during calendar year 2010;

    

    (v) Maker shall make quarterly
payments on the Note, each in an amount equal to the product of (A)
six-hundredths (.06) multiplied by (B) the amount equal to the Gross Revenues
earned in such calendar quarter during calendar year 2011 and subsequent
calendar years thereafter until the final payment in full of any remaining
outstanding principal and interest under the Note.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b)
Minimum Amounts. Notwithstanding anything to the contrary in Section 1(a), Maker
shall pay a minimum of $7,500 to Holder every quarter during each calendar year
in which payments to Holder could be required under Section 1(a) of this Note;
provided that to the extent any such amounts paid pursuant to this Section 1(b)
exceed the amount that would otherwise be due under this Note, such amounts paid
pursuant to this Section 1(b) shall be treated as an advance against amounts
payable pursuant to Section 1(a) in respect of subsequent calendar
quarters.

    

    (c)
Timing for Payments. Maker’s payments under this Note shall be due and payable
on a quarterly basis within forty-five (45) days following the end of the
calendar quarter in which Maker receives the applicable Gross
Proceeds.

    

    (d)
Application of Credits and Payments.

    

    (i) The Credits, as that term is
defined in the Purchase Agreement, shall be applied to the Maker’s first payment
under this Note and any and all subsequent payments until such time as the
aggregate amount of the Credits have been credited against payments under this
Note.

    

    (ii) In determining the amount
of interest payable under the Note, the amount of principle outstanding to be
used in making such determination shall be reduced by the amount of any
applicable Credits outstanding.

    

    (iii) Notwithstanding anything
to the contrary in this Section 1, all payments made pursuant to this Section 1
shall be applied first to earned interest and second to the outstanding
principal under the Note and, to the extent of any amount of Credits
outstanding, as if no amount of the Credits shall have been applied to such
payments.

    

    (e)
Prepayment. This Note may be prepaid at any time, without premium or penalty, in
whole or in part. Any prepayment of principal shall be accompanied by a payment
of earned and unpaid interest in respect of the principal being
prepaid.

    

    (f)
Definition of Gross Revenues. “Gross Revenues” means the aggregate amount of (i)
all fees and other revenue
that Purchaser actually receives from any source following the Closing Date,
(ii) the then-current fair market value of (x) the Purchased Assets, or (y) the
Business (as a going concern) or portion thereof sold or otherwise transferred
to an Affiliate of Purchaser and/or Eric Takamura, and (iii) the proceeds from
the sale or other disposition by Purchaser to any other third party of all or
any portion of (x) the Purchased Assets and/or (y) the Business as a going
concern following the Closing Date

    

    2.
Default and Acceleration Provisions.

    

    (a)
Repayment of all principal and interest under this Note will be accelerated and
shall be immediately due in full at the election of Holder by notice in writing
to Maker in the event (an “Event of Default”) Maker shall (i) fail to make any
payment due under this note, which failure continues for a period of ten (10)
days following Holder’ notice thereof, (ii) apply for or consent to the
appointment of a receiver, trustee or liquidator of Maker or any of its
property, (iii) admit in writing its general inability to pay its debts as they
mature, (iv) make a general assignment for the benefit of creditors, (v)
commence a voluntary case under the federal bankruptcy laws or file a petition
or answer seeking reorganization or an arrangement with creditors to take
advantage of any other bankruptcy, reorganization, insolvency, readjustment of
debt, dissolution or liquidation law or statute, or file an answer admitting the
material allegations of a petition filed against it in any proceeding under any
such law, or (vi) take corporate action for the purpose of effecting any of the
foregoing; or an order, judgment or decree shall be entered, without the
application, approval or consent of Maker, by any court of competent
jurisdiction, approving a petition seeking reorganization of Maker or of all or
a substantial part of the assets of Maker and such order, judgment or decree
shall continue unstayed and in effect for a period of sixty (60)
days.

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    (b) In
the case of any Event of Default, Maker shall pay, on demand, all costs of
enforcement and collection of this Note incurred by Holder, including but not
limited to reasonable attorneys’ fees, disbursements and court costs. The
liability of Maker hereunder shall be unconditional and shall not be in any
manner affected by and right of setoff of Maker or any indulgence whatsoever
granted or consented to by Holder, including, without limitation, any extension
of time, renewal, waiver or other modification.

    

    3. Rights
and Remedies. Upon the occurrence of an Event of Default and at any time
thereafter, Holder shall have the rights and remedies provided herein and under
applicable law.

    

    4.
Miscellaneous. 

    (a) This
Note may not be amended, modified or supplemented without the express written
consent of Holder and Maker. The failure by Holder to exercise any right
hereunder shall not be construed as a waiver of the right to exercise the same
or any other right at any time and from time to time thereafter. This Note may
not be changed or terminated orally or by estoppel or waiver or by any alleged
oral modification regardless of any claimed partial performance referable
thereto.

    

    (b) None
of the obligations of Maker under this Note may be assigned without the prior
written consent of Holder, and any purported assignment made without such
consent shall be void. The provisions of this Note shall be binding upon and
shall inure to the benefit of the parties hereto and their respective permitted
transferees, successors and assigns (each of which transferees, successors and
permitted assigns shall be deemed to be a party hereto for all purposes
hereof).

    

    (c) Maker
hereby waives presentment, notice of dishonor, protest and notice of protest,
and any or all other notices or demands in connection with the delivery,
acceptance, performance, default, endorsement or guarantee of this
Note.

    

    (d) All
notices, consents, requests, instructions, approvals, demands and other
communications provided for herein shall be validly given, made or served if in
writing and delivered personally by hand, by a nationally recognized overnight
courier service (i.e., FedEx or United Parcel Service), by United States
certified or registered first class mail, postage prepaid with return receipt
requested, or by electronic or facsimile transmission. Each such notice,
consent, request, instruction, approval, demand or other communication shall be
effective if delivered (a) personally by hand or by a nationally recognized
overnight courier service, when delivered at the address specified in this
Section 4(d); (b) by United States certified or registered first class mail sent
to the address specified in this Section 4(d) on the date appearing on the
return receipt therefore; or (c) by electronic or facsimile transmission, when
such electronic or facsimile transmission is transmitted to the electronic mail
address or facsimile transmission number specified in this Section 4(d) and the
appropriate confirmation is received. In the event that a party is unable to
deliver a notice, consent, request, instruction, approval, demand, or other
communication due to the inaccuracy of the address or facsimile transmission
number provided by the other party pursuant to this Section 4(d), or the other
party’s failure to notify the party of a change of its address or facsimile
transmission number as specified pursuant to this Section 4(d), such notice,
consent, request, instruction, approval, demand, or other communication shall be
deemed to be effective upon confirmation by a nationally recognized overnight
courier service of its failure to complete delivery to the other party’s address
as set forth in this Section 4(d) (or other address duly given to the party by
the other party in accordance with this Section 4(d)).

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    Addresses
and facsimile transmission numbers for notices (unless and until written notice
is given of any other address or facsimile transmission number):

    

    If to
Maker, to:

    NuGen
Mobility, Inc.

    44645
Guilford Drive, Suite 201

    Ashburn,
VA 20147

    Attention:
Eric Takamura

    Fax:
(703) 858-0699

    Email:
eric.takamura@ngmcorp.com

    

    with a
copy to:

    

    Pepper Hamilton LLP

    600
Fourteenth Street, NW

    Washington,
DC 20005-2004

    Attention:
Steve A. Mandell

    Fax:
(202) 220-1200

    Email:
mandells@pepperlaw.com

    

    If to
Holder, to:

    

    New
Generation Motors Corporation

    c/o
Henry, O'Donnell, Dahnke & Walther, P.C.

    4103
Chain Bridge Road, Suite 100

    Fairfax,
Virginia 22030

    Attention:
Bruce W. Henry

    Fax:
(703) 273-6884

    Email:
bwh@henrylaw.com

    

    (e) This
Note shall be governed by and construed in accordance with the laws of the
Commonwealth of Virginia applicable to instruments made and to be performed
wholly within Virginia. If any provision of this Note is held to be illegal or
unenforceable for any reason whatsoever, such illegality or unenforceability
shall not affect the validity of any other provision hereof.

    

    (f) IN ANY ACTION, SUIT OR PROCEEDING IN
RESPECT OF OR ARISING OUT OF THIS NOTE, MAKER WAIVES TRIAL BY JURY AND ANY
OBJECTION BASED ON FORUM NON CONVENIENS OR VENUE.

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    

    IN WITNESS WHEREOF, Maker has duly
executed and delivered this Note as of the day and year first above
written.

    

    
      
        
          
            
              	
                      NUGEN
      MOBILITY INC.

                    	 
	 
      	 
	
                      By:
      /s/ Eric Takamura

                    	 
	
                      Name:

                    	
                      Eric
      Takamura

                    	 
	
                      Title:

                    	
                      President

                    	 

            

          

        

      

    

    
      
         

      

      
        -5-Exhibit
10.1

    

     

    SEPARATION AGREEMENT AND
GENERAL RELEASE OF ALL CLAIMS

     

    This
SEPARATION AGREEMENT AND GENERAL RELEASE OF ALL CLAIMS, (“Agreement”) is made
and entered into by and between PATRICK L. JOHNSON (“Employee”) and PRO-DEX,
Inc., a Colorado corporation (“the Company”).

     

    RECITALS

     

    WHEREAS,
Employee has been employed by the Company in various capacities, most recently
in the position of Executive Vice President and Chief Business Development
Officer

     

    WHEREAS,
Employee and the Company are parties to that certain October 18, 2006 letter
agreement signed by Employee and by Mark P. Murphy on behalf of the Company, the
provisions of which letter agreement the parties intend to supersede through
their entry into this Agreement; and

     

    WHEREAS,
Employee’s employment with the Company will separate on February 5, 2010 (the
“Separation Date”), and the Company and Employee mutually desire to settle fully
and finally all obligations to Employee that the Company may have of any nature
whatsoever, as well as any asserted or unasserted claims that Employee may have
arising out of his employment with the Company or the separation of that
employment.

     

    AGREEMENT

     

    NOW,
THEREFORE, in consideration of the foregoing Recitals, the mutual covenants and
agreements and the terms and conditions set forth herein and other valuable
consideration, the parties agree as follows:

    

    
      	
               
      

            	
              1.

            	
              Compensation Through Separation
      Date.  On the Separation Date, Employee will be paid all unpaid
      base salary, unpaid bonuses earned, unreimbursed business expenses,
      together with any accrued but unused vacation pay, less state and federal
      taxes and other required withholding, for the period from the last regular
      pay day through the Separation Date.  Employee acknowledges and agrees
      that upon the receipt of the foregoing payment, the Company will have paid
      to him all salary, bonuses, benefits, accrued vacation pay, or other
      consideration owed to him at any time and for any reason through the
      Separation Date.  Employee further represents and agrees that no further
      sums are or were due and owing Employee either by the Company or by any
      individual or entity related to the Company in any way, except as provided
      for in this Agreement.

            

    

    

    
      	
               
      

            	
              2.

            	
              Effective Date.  The
      Effective Date of this Agreement shall be the eighth day after Employee’s
      dated execution of this Agreement, provided that Employee has not revoked
      this Agreement pursuant to Paragraph
      13.

            

    

    

    
      	
               
      

            	
              3.

            	
              Special Additional
      Compensation.  In consideration of this Agreement, and provided
      that none of the provisions of Paragraph 4 has
      been violated, and that the revocation period referenced in Paragraph 13
      shall have expired without this Agreement
      having been revoked, the Company also will do the
      following:

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              A.

            	
              Continue
      to pay Employee, over a period of six months from the Separation Date, in
      regular installments on the Company’s regular payroll pay dates for exempt
      employees, a gross amount equal to Employee’s last regular bi-weekly
      salary until the total gross payments have reached the amount of One
      Hundred Five Thousand Dollars ($105,000), less applicable legal deductions
      and withholdings (the “Separation Agreement
  Payment”)

            

    

    

    
      	
               
      

            	
              B.

            	
              As
      additional consideration for the promises and obligations contained
      herein, and provided Employee elected coverage under the Company’s group
      health insurance program prior to the Separation Date and makes a timely
      election for continued coverage pursuant to COBRA, the Company further
      agrees to pay the Company’s portion of the monthly premiums for such
      continued coverage under the Company’s group health insurance program for
      a period from the Separation Date through July 31, 2010.  Thereafter, if
      applicable, continuation coverage pursuant to COBRA will be available to
      Employee at Employee’s sole expense, and Employee will be responsible for
      the full COBRA premium for any remaining months of the COBRA coverage
      period made available pursuant to applicable
  law.

            

    

    

    
      	
               
      

            	
              C.

            	
              Make
      available to Employee the following Additional Contingent Separation
      Payment (“ACSP”), subject to the provisions of this Subparagraph
      3-C:

            

    

    

    
      	
               
      

            	
              1)

            	
              At
      any time between March 8, 2010, through August 7, 2010, Employee shall be
      entitled to notify the Company in writing that he wishes to cause the
      Company to calculate and pay him all or a portion of the ACSP based upon
      the total number of options which were the subject of one or more option
      grants previously granted to Employee with grant dates from June 30, 2001
      through September 6, 2002, and outstanding as of both (i) the Separation
      Date and (ii) March 7, 2010 (each such option grant, a “Reference Grant”),
      as Employee shall have identified in his written notice, in which event
      the Company:

            

    

    

    
      	
               
      

            	
              a.

            	
              shall
      calculate the average closing price of its common shares of stock for the
      five trading days immediately preceding the date of the receipt of
      Employee’s written notice;

            

    

    

    
      	
               
      

            	
              b.

            	
              shall,
      with respect to each such Reference Grant identified in the written
      notice, subtract the exercise price of such Reference Grant from the
      lesser of (i) the average closing price as calculated in sub-section (a)
      above or (ii) $1.50; and

            

    

    

    
      	
               
      

            	
              c.

            	
              shall
      multiply the resulting amount, if any, by the total number of such options
      (and no less than the total number of such options) contained in each
      Reference Grant specified by Employee in his written notice; provided,
      however, that:

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              i.

            	
              any
      Reference Grant identified in a written notice from Employee cannot later
      be identified in a subsequent written notice;
  and

            

    

    
      	
               
      

            	
              ii.

            	
              the
      ACSP shall have a maximum aggregate limit of $117,125, regardless of (A)
      the stock price of the Company at any time, (B) the number of written
      notices provided by Employee from March 8, 2010, through August 7, 2010,
      or (C) the number or size of the Reference Grant specified by Employee in
      any such written notification.

            

    

    

    
      	
               
      

            	
              2)

            	
              Employee’s
      eligibility to request payment of the ACSP is further subject to the
      following provisions:  (a) at no time from the Separation Date through
      August 7, 2010, shall Employee take any action with a purpose of
      influencing the stock price of the Company’s common stock, and (b) at no
      time from March 8, 2010, through August 7, 2010, shall Employee trade, for
      himself or anyone acting in concert with him, in the stock, options or
      other equity of the Company.

            

    

    

    
      	
               
      

            	
              3)

            	
              The
      Company shall pay any ACSP to Employee within ten business days after the
      calculation of any amount properly payable under the provisions of this
      Subparagraph
      3-C, less deductions and withholdings as required by
      law.

            

    

    

    
      	
               
      

            	
              4)

            	
              The
      foregoing prices and amounts shall be proportionately adjusted in the
      event of any reverse or forward stock split or other adjustment to the
      capital structure of the Company.

            

    

    

    
      	
               
      

            	
              4.

            	
              Return of Company
      Property.  Employee understands that, except as otherwise provided
      by this Paragraph 4, as
      of the Separation Date he was required to return to the Company, and
      Employee represents that he has returned to the Company, all tangible
      property and information belonging to the Company that is within his
      possession or subject to his control, including but not limited to any
      equipment, supplies, credit cards, and office machines, and also including
      any electronic or tangible documents or files relating to the Company,
      except for (i) such personnel and compensation records provided to
      Employee during the course of his employment, and (ii) the following
      tangible items which were assigned for Employee’s use prior to the
      Separation Date, and which the Company has agreed Employee may retain
      thereafter: cell phone and cell phone number, laptop computer and docking
      station (but excluding Company data files and documents, which Company
      shall be entitled to remove from the computer and any related storage
      devices), and office chair.  The Company agrees to transfer to Employee
      the Sprint Card account associated with the laptop computer, and to permit
      Employee to retain, at his expense, the Company-procured hotel reservation
      for the 2010 AAOS convention.

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              5.

            	
              Health Insurance
      Benefits. Employee is entitled to continue his health insurance
      benefits at his own expense (except as otherwise provided in Paragraph 3)
      and for such period as may be required by law following the period
      specified.

            

    

    

    
      	
               
      

            	
              6.

            	
              Complete Release of Claims by
      Employee.

            

    

    

    
      	
               
      

            	
              A.

            	
              In
      consideration for this Agreement, and to the maximum extent permitted by
      law, Employee, for himself, and his heirs, assigns, executors,
      administrators, agents and successors (collectively, “Employee’s
      Affiliates”) hereby fully releases, covenants not to sue and forever
      discharges the Company and each of its predecessors, successors, assigns,
      employees, officers, directors, shareholders, agents, attorneys,
      subsidiaries, parent companies, divisions or affiliated corporations or
      organizations, expressly including, but not limited to, PRO-DEX, Inc.,
      whether previously or hereafter affiliated in any manner (collectively,
      “Released Parties”), from any and all claims, demands, actions, causes of
      action, charges of discrimination, obligations, damages, attorneys’ fees,
      costs, expenses, and liabilities of any nature whatsoever, whether or not
      now known, suspected or claimed (the “Claims”), that Employee or
      Employee’s Affiliates ever had, now have, or may claim to have as of the
      date of this Agreement against the Released Parties (whether directly or
      indirectly), or any of them, by reason of any act or omission concerning
      any matter, cause or thing occurring on or before the Effective Date of
      this Agreement.  This release includes, without limiting the generality of
      the foregoing, the waiver of any claims related to or arising out of
      Employee’s employment with the Company or the separation of that
      employment. In giving this release, Employee waives and releases any and
      all rights to employment or re-employment with the
  Company.

            

    

    

    
      	
               
      

            	
              B.

            	
              Without
      limiting the generality of the foregoing, Employee understands and agrees
      that the release provisions of this Paragraph 6
      apply to any Claims that Employee or the Employee’s Affiliates now have,
      or may ever have had, against the Company or any of the other Released
      Parties occurring on or before the Effective Date of this Agreement that
      arise out of or are in any manner related to Employee’s employment with
      the Company or with any of the other Released Parties, as well as the
      separation of that employment, including without limitation any Claims
      arising out of or related to violation of any federal or state employment
      discrimination laws, including the California Fair Employment and Housing
      Act; the California Family Rights Act; the Family and Medical Leave Act;
      Title VII of the Civil Rights Act of 1964; the federal Age Discrimination
      in Employment Act, as amended; the Americans With Disabilities Act; the
      National Labor Relations Act; the Equal Pay Act; the Employee Retirement
      Income Security Act of 1974; as well as all Claims arising out of or
      related to violations of the provisions of the California Labor Code; the
      California Government Code; the California Business & Professions
      Code, including Business & Professions Code Section 17200, et seq.;
      state and federal wage and hour laws, including the federal Fair Labor
      Standards Act; breach of contract; fraud; misrepresentation; common
      counts; unfair competition; unfair business practices; negligence;
      defamation; infliction of emotional distress; invasion of privacy;
      assault; battery; false imprisonment; wrongful termination; and any other
      state or federal law, rule, or
regulation.

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              C.

            	
              Employee
      acknowledges and represents that he did not suffer any work-related
      injuries while working for the Company.  Employee acknowledges and
      represents that he has no intention of filing any claim for workers’
      compensation benefits of any type against the Company, and that he will
      not file or attempt to file any claims for workers’ compensation benefits
      of any type against the Company.  Employee acknowledges that the Company
      has relied upon these representations, and that the Company would not have
      entered into this Agreement but for these representations.  As a result,
      Employee agrees, covenants, and represents that the Company may, but is
      not obligated to, submit this Agreement to the Workers’ Compensation
      Appeals Board for approval as a compromise and release as to any workers’
      compensation claim that Employee files at any time against the
      Company.

            

    

    

    
      	
               
      

            	
              7.

            	
              Older Workers Benefit
      Protection Act.  This Agreement is subject to the terms of the
      Older Workers Benefit Protection Act of 1990 (the “OWBPA”).  The OWBPA
      provides that an individual cannot waive a right or claim under the Age
      Discrimination in Employment Act (“ADEA”) unless the waiver is knowing and
      voluntary.  Pursuant to the terms of the OWBPA, Employee acknowledges and
      agrees that he has executed this Agreement voluntarily, and with full
      knowledge of its consequences.  In addition, Employee hereby acknowledges
      and agrees that: (a) this Agreement has been written in a manner that is
      calculated to be understood, and is understood, by Employee; (b) the
      release provisions of this Agreement apply to rights and claims that
      Employee may have under the ADEA, including the right to file a lawsuit
      against the Released Parties for age discrimination; (c) the release
      provisions of this Agreement do not apply to any rights or claims that
      Employee may have under the ADEA that arise after the date Employee
      executes this Agreement; and (d) the Company does not have a preexisting
      duty to pay the special additional compensation identified in this
      Agreement (except to the extent otherwise provided in the October 18, 2006
      letter agreement referenced in Paragraph
      3-A).

            

    

    

    
      	
               
      

            	
              8.

            	
               General Nature of Release;
      Claims Not Released.  The Release set forth above in Paragraph 6 of
      this Agreement is a general release of all claims, demands, causes of
      action, obligations, damages, and liabilities of any nature whatsoever
      that are described in the Release and is intended to encompass all known
      and unknown, foreseen and unforeseen claims that Employee may have against
      the Released Parties, or any of them, except for any claims that may arise
      from the terms of this Agreement, or any claims which may not be released
      as a matter of law.  It is further understood by the Parties that nothing
      in this Agreement shall affect any rights Employee may have under any
      Pension Plan and/or Savings Plan (i.e., 401(k) plan) provided by the
      Company as of the Separation Date, such items to be governed exclusively
      by the terms of the applicable plan documents.  Employee covenants and
      agrees never to commence, aid in any way, prosecute or cause to be
      commenced or prosecuted any action or other proceeding based upon any
      claims, demands, causes of action, obligations, damages or liabilities
      which are the subject of this Agreement; provided however, that Employee
      does not relinquish any protected rights to file a charge, testify, assist
      or participate in any manner in an investigation, hearing or proceeding
      conducted by the Equal Employment Opportunity Commission, the Office of
      Federal Contract Compliance or any similar state human rights agency.
      However, Employee may not recover additional compensation or damages as a
      result of any such action.

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              9.

            	
              Release of Section 1542
      Rights.  Employee expressly waives and relinquishes all rights and
      benefits he may have under Section 1542 of the California Civil Code.
      Section 1542 is intended to protect against an inadvertent release of
      unknown or unsuspected claims that would be material to this Agreement.
      This Paragraph
      9 provides that Employee also is releasing any such unknown or
      unsuspected claims.  Section 1542 reads as
  follows:

            

    

     

    “Section
1542.  [General Release; extent.]  A general release does not extend to claims
which the creditor does not know or suspect to exist in his or her favor at the
time of executing the release, which if known by him or her must have materially
affected his or her settlement with the debtor.”

    

    
      	
               
      

            	
              10.

            	
              Non-Admission of
      Liability.  Employee and the Company acknowledge and agree that
      this Agreement is a settlement agreement and shall not in any way be
      construed as an admission by any of the Released Parties of any wrongful
      act against, or any liability to, Employee or any other
      person.

            

    

    

    
      	
               
      

            	
              11.

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

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              12.

            	
              Twenty-One Day Consideration
      Period.  This Agreement is being given to Employee on January 27,
      2010.  Employee acknowledges that he is entitled to take up to twenty-one
      (21) calendar days to consider whether to accept this Agreement, and that
      if he signs this Agreement before expiration of the 21-day period, he has
      done so voluntarily.  Employee agrees that any modifications, material or
      otherwise, made to this Agreement do not restart or affect in any manner
      the original twenty-one (21) calendar day consideration
      period.

            

    

    

    
      	
               
      

            	
              13.

            	
              Seven Day Revocation
      Period.  After signing this Agreement, Employee shall have a period
      of seven (7) calendar days to revoke the Agreement by providing the
      Company with written notice of his revocation.  To be effective, such
      revocation must be in writing, must specifically revoke this Agreement,
      and must be received by the Company prior to the eighth calendar day
      following Employee’s execution of this Agreement. This Agreement shall
      become effective, enforceable, and irrevocable on the eighth calendar day
      following Employee’s execution of this Agreement.  Any revocation of this
      Agreement, however, shall not affect the finality of the separation of
      Employee’s employment with the Company on the Separation
    Date.

            

    

    

    
      	
               
      

            	
              14.

            	
              Acknowledgment of Being Advised
      to Consult Legal Counsel.  This Agreement is an important legal
      document.  Employee acknowledges that the Company has advised him in
      writing to consult with an attorney of his choice prior to signing this
      Agreement, and that he has had the opportunity to consult with an attorney
      to the extent he so desires.

            

    

    

    
      	
               
      

            	
              15.

            	
              Confidentiality.  As a
      material inducement to the Company to enter into this Agreement, Employee
      promises and agrees to maintain confidentiality regarding this Agreement
      to the extent permitted by applicable law, except to the extent the
      Company publicly discloses its terms in accordance with public company
      disclosure requirements.  Therefore, except to the extent of any public
      disclosure by the Company, Employee promises and covenants not to
      disclose, publicize, or cause to be publicized any of the terms and
      conditions of this Agreement except to his immediate family, and to his
      attorney or accountant to the extent reasonably necessary to obtain
      professional advice with respect to the parties’ rights and obligations as
      stated herein, or otherwise as permitted by law.  Employee further
      promises and covenants to use his best efforts to prevent any further
      disclosure of this Agreement by any such persons to whom he does make
      disclosure.

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              16.

            	
              Ambiguities.  Employee
      and the Company agree that the general rule that ambiguities shall be
      construed against the drafting party shall not apply to any interpretation
      of this Agreement.

            

    

    

    
      	
               
      

            	
              17.

            	
              Interpretation.
      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.  All captions are for convenience of
      reference only and shall be disregarded in interpreting this
      Agreement.

            

    

    

    
      	
               
      

            	
              18.

            	
              Entire Agreement.
      Employee acknowledges that he is not relying, and has not relied, on any
      representation or statement by the Company with regard to the subject
      matter or terms of this Agreement, except to the extent set forth fully in
      this Agreement.  This Agreement constitutes the entire agreement between
      Employee and the Company with respect to the subject matter of this
      Agreement, and supersedes any and all other agreements, understandings or
      discussions between Employee and the Company with respect to the subject
      matter of this Agreement (specifically including the October 18, 2006
      letter agreement between Employee and the Company), other than (a) the
      Employee Invention and Confidentiality Agreement most recently signed by
      Employee, and (b) the Indemnification Agreement between the parties, dated
      November 1, 2008, each of which agreements shall survive the execution of
      this Agreement and the separation of Employee’s
  employment.

            

    

    

    
      	
               
      

            	
              19.

            	
              Risk of New or Different
      Facts.  Employee acknowledges that he may discover new information
      different from or inconsistent with facts he presently believes to be
      true, and expressly agrees to assume the risk of such new or different
      information.

            

    

    

    
      	
               
      

            	
              20.

            	
              Acknowledgment by Company of No
      Known Claims Against Employee.  The Company represents and
      acknowledges that it knows of no claims it has against Employee, and
      hereby confirms at Employee’s request that the Company has no present
      intention of pursuing any claim or claims against
  Employee.

            

    

    

    
      	
               
      

            	
              21.

            	
              Modification.  This
      Agreement cannot be modified or terminated, except by a writing signed by
      the party against whom enforcement of the modification or termination is
      sought.

            

    

    

    
      	
               
      

            	
              22.

            	
              Voluntary
      Agreement.  This Agreement in all respects has been
      voluntarily and knowingly executed by the parties
      hereto.  Employee specifically represents that he has carefully
      read and fully understands all of the provisions of this Agreement, and
      that he is voluntarily entering into this
  Agreement.

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              23.

            	
              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.

            

    

    

    
      	
               
      

            	
              24.

            	
              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 giving effect to conflicts of laws
      principles.

            

    

     

    IN
WITNESS WHEREOF, the parties hereto have executed this Separation Agreement and
General Release of All Claims, and have initialed each page hereof, on the dates
set forth below.

    

    
      
        
          
            	
                    Dated:
      February 3, 2010

                  	 
      	
                    /s/ Patrick L. Johnson

                  
	 
      	 
      	
                    Patrick
      L. Johnson

                  
	 
      	 
      	
                    Employee

                  
	 
      	 
      	 
      
	 
      	 
      	
                    PRO-DEX,
      INC.

                  
	 
      	 
      	 
      
	
                    Dated:
      February 3, 2010

                  	 
      	
                    /s/ Mark P. Murphy

                  
	 
      	 
      	
                    By:
      Mark P. Murphy

                  
	 	 	 
	 
      	 
      	
                    Its:
      Chief Executive
      Officer

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