Document:

LaserSight Incorporated
                    Non-Employee Directors Stock Option Plan
                  (as amended and restated as of May 14, 1999)

         The LaserSight  Incorporated  Non-Employee Directors Stock Option Plan,
as established by LaserSight Incorporated, a Delaware corporation (the
"Company"), effective January 19, 1996 and as amended and restated effective May
10, 1997, is hereby further amended and restated as set forth herein effective
May 14, 1999 (as so amended and restated, the "Plan"), subject to the approval
of the holders of a majority of the shares of Common Stock (as defined below)
present or represented and entitled to vote at the Company's 1999 annual meeting
of stockholders.

                               Article I: Purpose
                               ------------------

         The purpose of the Plan is to encourage qualified persons to become and
remain directors of the Company, and to provide directors of the Company with a
direct stake in its success.

                             Article II: Definitions
                             -----------------------

         2.1      "Board of Directors" means the Board of Directors of the
                  --------------------
Company.

         2.2      "Cause" means (i) conviction of, or plea of no contest to, any
                   -----
crime involving moral turpitude, (ii) the material violation of the Company's
written policies, or (iii) habitual neglect of fiduciary duties owed to the
Company.

         2.3      "Chairman of the Board" means the Chairman of the Board of
                  -----------------------
Directors.

         2.4      "Committee" means a standing committee of the Board of
                  -----------
Directors, other than the Executive Committee.

         2.5      "Common Stock" means the common stock, par value $.001 per
                   ------------
share, of the Company.

         2.6      "Director" means a member of the Board of Directors.
                   --------

         2.7      "Effective Date" means January 19, 1996.
                   --------------

         2.8      "Eligible Director" means a Director who is not an employee
                  -------------------
of the Company or any of its subsidiaries as of the date of any grant of an
Option to him or her.

         2.9      "Exchange Act" means the Securities Exchange Act of 1934.
                   ------------

         2.10     "Fair Market Value" of a security means, as of any date, (i)
                   -----------------
if the security is listed for trading on a national securities exchange or the
Nasdaq National Stock Market, the closing price, regular way, of the security as
reported on the consolidated transaction reporting system applicable to such

<PAGE>

security, or if no such reported sale of the security shall have occurred on
such date, on the next preceding date on which there was such a reported sale,
or (ii) if the security is not listed for trading on a national securities
exchange or the Nasdaq National Market, but is listed on the NASDAQ SmallCap
Market, the average of the closing bid and asked prices, regular way, on the
Nasdaq SmallCap Market or, if no such prices shall have been so reported for
such date, on the next preceding date for which such prices were so reported.

         2.11     "Grantee" means the holder of an Option or any person entitled
                  ---------
to exercise an Option.

         2.12     "Option" means a right to purchase Common Stock granted under
                   ------
this Plan.

         2.13     "Term" shall have the meaning provided in Section 5.2.
                   ----
                           Article III: Administration
                           ---------------------------

         Subject to the  provisions of the Plan,  the Board shall have the power
to construe and interpret the Plan, to determine all questions arising
thereunder, and to adopt and amend rules for the administration of the Plan;
provided, however, that no such interpretation or rule shall change the number
of Options that may be granted under the Plan or the terms upon which, or the
times at which, or the periods within which, such Options may be exercised. Any
decision of the Board in the administration of the Plan shall be final.

                       Article IV: Amount of Common Stock
                       ----------------------------------

         The  aggregate  number of shares of Common  Stock in  respect  of which
Options may be exercised shall not exceed 600,000, subject to adjustment
pursuant to Article VII. Such shares of Common Stock may be either authorized
but unissued shares or previously-issued shares reacquired by the Company. If
any Options terminate or expire without being exercised in whole or in part, new
Options may be granted covering the shares not purchased under such terminated
or expired Options.

                           Article V: Grant of Options
                           ---------------------------

         5.1 Annual Grants of Options.  As of the close of business on the
             ------------------------
date of each annual meeting of the  stockholders of the Company ("Annual
Meeting"):

             (i)   each Eligible Director shall automatically be granted
                   an Option for 15,000 shares of Common Stock,

             (ii)  each  Eligible  Director  who is  then  serving  as a
                   chairman of a Committee shall automatically be granted an
                   additional Option for 5,000 shares of Common Stock, and

<PAGE>

             (iii) the Eligible Director, if any, who is then serving as the
                   Chairman of the Board shall automatically be granted an
                   additional Option for 5,000 shares of Common Stock.

For purposes of clause (ii) of this Section,  if an Eligible Director is serving
as chairman of more than one Committee, such Eligible Director shall receive an
additional Option in respect of each such Committee chairmanship.

         5.2 Interim Grants of Options.  As of the close of business on the date
             -------------------------
a person first becomes an Eligible Director on any date other than the date of
an Annual Meeting, he shall automatically be granted an Option for a number of
shares of Common Stock equal to 15,000 multiplied by a fraction, the numerator
of which is 365 minus the number of calendar days elapsed since the most recent
Annual Meeting and the denominator of which is 365.

         5.3 Grants of Options Upon Termination of Service.  As of the close of
             ----------------------------------------------
business on the date an Eligible Director ceases to serve as such, he shall
automatically be granted an Option for 15,000 shares of Common Stock; provided
that no such Option shall be granted if the reason for such cessation of service
was: (i) the removal of the Eligible Director by the stockholders of the Company
for Cause, or (ii) the resignation of such Eligible Director during his term
without the prior approval of the Board of Directors.

         5.4 Term of Options. Each Option shall have a term ("Term") of 10 years
             ---------------
beginning on the date of grant, unless earlier terminated as provided herein.

         5.5 Exercise Price.  Subject to adjustment pursuant to Article VII, the
             --------------
exercise price per share for each Option shall be 100% of the Fair Market Value
of a share of Common Stock on the date of grant, or if such grant is subject to
the approval of the Company's stockholders, then the exercise price per share
for each Option shall be 100% of the Fair Market Value of a share of Common
Stock on the date such shareholder approval is received.

         5.6 Option Agreements.  Each Option shall be evidenced  by an
             -----------------
agreement in such form as the Board shall prescribe from time to time and shall
be consistent with the Plan.

                         Article VI: Exercise of Options
                         -------------------------------

         6.1 Vesting.  Each  outstanding Option shall be fully
             -------
exercisable at any time on or after the first anniversary of its date of grant.

         6.2 Exercise.  An Option shall be exercised by delivery during the Term
             --------
to the Company of (i) written  notice of the exercise  specifying  the number of
shares to be purchased and (ii) full payment in cash for the shares of Common
Stock being acquired thereunder.

<PAGE>

         6.3 Exercise After Termination of Directorship. If a person shall cease
             ------------------------------------------
to be a Director for any reason while holding an unexpired Option that has not
been fully exercised, such Option shall thereupon terminate; provided that such
person, or in the case of his death or adjudication of incompetency, his
executor, administrator, distributees, guardian or legal representative, as the
case may be, may exercise the Option (to the extent that it was exercisable
pursuant to Section 6.1 on the date the person ceased to be a Director) at any
time until the earlier to occur of (i) three years after the date such person
ceased to be a Director, or (ii) the expiration of the Term of such Option.

                     Article VII: Changes in Capitalization
                     --------------------------------------

         7.1 Adjustments.  If the outstanding  Common Stock is changed by reason
             -----------
of reorganization, merger, consolidation, recapitalization, reclassification,
stock split, reverse stock split, stock dividend, rights offering, combination,
spinoff, exchange of shares, or the like, an appropriate adjustment shall be
made by the Board to (i) the aggregate number of shares then-remaining available
under the Plan, (ii) the number of shares of Common Stock in respect of which
Options are subsequently to be granted pursuant to Sections 5.1 and 5.2, and
(iii) to the extent that the following adjustments are necessary to preserve the
economic value of unexercised Options, the number or type of shares of capital
stock subject to, and the exercise price of, outstanding Options.

         7.2 No Fractional Shares.  If a fraction of a share would otherwise
             ---------------------
result from any adjustment  pursuant to Section 7.1, the adjusted share amount
shall be rounded to the nearest whole number.

                           Article VIII: Miscellaneous
                           ---------------------------

         8.1 Options Non-Transferable.  An Option shall not be  transferable by
             ------------------------
its Grantee except by will or the laws of descent and distribution and shall be
exercisable during the Grantee's lifetime only by the Grantee or his or her
guardian or legal representative; provided, however, that a Grantee may in a
manner and to the extent permitted by the Board (a) designate in writing a
beneficiary to exercise an Award after his or her death or (b) transfer an
Option to a revocable, inter vivos trust as to which the Grantee is the settlor
and trustee.

         8.2 Expenses.  The expenses of the Plan shall be borne by the
             --------
Company.  Any taxes  imposed on a Grantee upon  exercise of an Option shall be
paid by such Grantee.

         8.3 No Right to Re-Election.  Neither  the Plan nor any  action  taken
             ------------------------
hereunder  shall be construed as giving any Director any right to be retained or
re-elected as a Director.

         8.4 Securities Registration.  The Company  shall not be  obligated to
             -----------------------
deliver any shares of Common Stock hereunder until such shares have been listed
on each securities exchange or national market system on which the Common Stock
may then be listed, or until there has been compliance with all applicable state
or federal securities laws; provided, however, that the Company shall use all
reasonable efforts to cause any such listing and compliance.

<PAGE>

         8.5 Taxes.  The Company shall not be required to issue shares of Common
             -----
Stock upon the exercise of an Option unless the Grantee shall first pay to the
Company such amount, if any, as may be requested by the Company to satisfy any
liability to withhold federal, state, local or foreign income or other taxes
relating to such exercise.

         8.6 Rights as Stockholder.  A Grantee shall not by reason of any Option
             ---------------------
have any right as a stockholder of the Company with respect to the shares of
Common Stock which may be deliverable upon exercise of such Option until such
shares have been delivered to him or her.

         8.7 Severability.  If all or any part of the Plan is  declared  by any
             ------------
court or governmental authority to be unlawful or invalid, such unlawfulness or
invalidity shall not serve to invalidate any portion of the Plan not declared to
be unlawful or invalid. Any Section or part of a Section so declared to be
unlawful or invalid shall, if possible, be construed in a manner which gives
effect to the terms of such Section or part of a Section to the fullest extent
possible while remaining lawful and valid.

         8.8 Applicable Law. The Plan shall be governed by the substantive
             --------------
laws (excluding  the conflict of laws rules) of the State of Delaware.

                              Article IX: Amendment
                              ---------------------

         The Plan may be amended from time to time by the Board as it shall deem
advisable, including amendments necessary to qualify for any exemption or to
comply with applicable law or regulations; provided, however, that no amendment
to the Plan may be made without the approval of the stockholders of the Company
which changes (i) the criteria for Eligible Directors or (ii) the vesting
conditions, term of exercisability, grant timing, grant amount or exercise price
of Options. No amendment of the Plan shall adversely affect the rights of any
Grantee under an Option without the consent of such Grantee.

                             Article X: Termination
                             ----------------------

         The Plan shall terminate on the 10th  anniversary of the Effective Date
of the Plan, unless sooner terminated by the Board. Any termination of the Plan
shall not affect any Option then outstanding.RCG Warrants

ENGAGEMENT AGREEMENT

April 10, 2000

 

Mr. Donald J. Stewart

Vice President of Finance,

Chief Financial Officer

Abaxis, Inc.

1320 Chesapeake Terrace

Sunnyvale, CA  94089

1. This letter agreement will confirm the understanding between Abaxis, Inc.
and/or its affiliates and successors (the "Company" or "ABAX") and RCG Capital
Markets Group, Inc. and/or its affiliates and successors ("RCG") with respect to the
matters set forth herein.  RCG will provide consulting and other services, as more particularly
described herein and in the attachment hereto entitled Financial Relations Services Attachment (the
"Financial Relations Services"), to the Company and will represent the Company during the
engagement as non-exclusive Financial Relations Consultants with respect to the Financial Relations
Services, on the terms and conditions set forth herein and in the attachments hereto, all of which
are incorporated herein by reference and form a part hereof.  The period during which RCG will
perform the Financial Relations Services for the Company will commence on April 15, 2000 (the
"Commencement Date") and, unless otherwise terminated as provided in this paragraph or in
paragraph nine of this letter agreement, will terminate on the date which is Eighteen
months following the commencement date (the "Termination Date").  The period
beginning on the Commencement Date and ending on the Termination Date is hereafter referred to as
the "Engagement Term".  As more particularly described in paragraph 9 below, either party
may terminate this agreement at any time after the initial Six month anniversary of the
Commencement Date upon thirty (30) days prior written notice to the other party.

2. During the Engagement Term, the Company agrees to furnish or cause to be
furnished to RCG all information concerning the Company as RCG reasonably requests and deems
appropriate for purposes of providing the Financial Relations Services.  The Company represents that
all information, with respect to the Company, provided to RCG will be complete and correct in all
material respects and will not contain any untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements therein not misleading in light of the
circumstances under which such statements are made.  Abaxis understands, that in rendering the
Financial Relations Services required hereunder, RCG will be using and relying on publicly available
information and the information furnished to RCG by Abaxis without independent verification thereof.
RCG will treat as confidential any non-public information provided to it hereunder and will not
disclose the same to third parties at any time unless required by applicable law. In the event
disclosure has been or will be made by RCG, RCG will use its reasonable best efforts to cooperate as
requested by the Company in minimizing any potential loss or injury to the Company as a consequence
of any such necessary disclosure. In addition, RCG will use its reasonable best efforts to comply
with all applicable state and Federal securities laws in the performance of this agreement.

3. During the Engagement Term, RCG and its employees, consultants and contractors
will be generally available to Abaxis, Inc., in connection with its rendering of the Financial
Relations Services. Specifically, RCG (a) will assist the Company to identify and secure an
underwriter for a future securities offering (b) will outline, develop and implement a financial
relations program to assist the Company in creating and/or enhancing a positive and more visible
public image, (c) may contact existing and future shareholders, broker/dealers, potential investors,
registered representatives, institutions, mutual fund managers, investment banking sources,
securities analysts, independent portfolio managers, and other professional investment community
contacts including certain financial media sources for the purpose of enhancing the Company's public
image and perceived value, (d) will assist the Company in the creation, production and distribution
of certain financial markets and investor/shareholder corporate image materials, including corporate
profiles, due diligence materials and investor packages, as well as all financial press releases;
(e) assist the Company in its endeavor to secure research analyst coverage through a targeted
securities professionals campaign and (f) otherwise perform the services described in the Financial
Relations Services Attachment.

4. During the Engagement Term, the Company will afford RCG the opportunity and
reasonable time period to review and/or comment on any disclosure, prior to its release, which the
Company plans to make to any of the sources described in paragraph (3) and which relates to the
Financial Relations Services to be provided hereunder. In addition, RCG will be responsible for
assisting the Company in writing and/or editing, producing, coordinating and disseminating all
financial industry press releases. RCG agrees that it will not release or distribute any press
release without the Company's prior consent.

5. In consideration of RCG's services hereunder, the Company agrees to pay RCG,
promptly when due, the Compensation as described by and in strict accordance with the attachment
hereto entitled Financial Relations Compensation Attachment.  Should RCG and the Company determine
to extend the Engagement Term or change the scope of the engagement, then a mutually acceptable
amendment or supplement to that attachment shall be promptly executed by RCG and Company. Absent any
such amendment, all terms and conditions of this letter agreement shall be binding to the parties.

6.  RCG shall be entitled to such additional fees as may be mutually agreed upon
by separate agreement between the parties hereto, for additional consulting services not anticipated
in this agreement rendered during the engagement term.

7.  As more particularly set forth in the Financial Relations Compensation
Attachment, the Company agrees to pay all of RCG's direct and certain indirect out-of-pocket
expenses reasonably incurred, in connection with this engagement. As set forth in the Financial
Relations Compensation Attachment, an expense retainer shall be utilized for this purpose. 

8.  The Company and RCG agree to indemnify each other (the indemnifying party
hereafter being referred to as the "Indemnitor", and the party entitled to indemnification hereafter
being referred to as the "Indemnitee") as follows: Indemnitor agrees to defend, indemnify and hold
harmless Indemnitee, and its officers, directors, and employees against any and all losses, claims,
demands, suits, actions, judgments, awards, damages, liabilities, costs, reasonable attorneys' fees,
and expenses incurred in investigating, preparing or defending any such action or claim, directly or
indirectly caused by, related to, or asserted by a third party, based upon or arising out of (a) the
Indemnitor's breach of or the incorrectness of any of its representations, warranties, or covenants
contained in this agreement; and/or (b) any Services rendered by RCG as defined in or contemplated
by this agreement, as it may be amended from time to time (the "Agreement"). Notwithstanding the
foregoing, the Indemnitor shall have no obligation to indemnify or hold the Indemnitee harmless with
regard to Indemnitee's gross negligence, willful misconduct, or the material breach of or the
incorrectness of any representation, warranty or covenant of Indemnitee contained in this
Agreement.

 

9.  Either party hereto may terminate this engagement as follows:

(a) Either party hereto may terminate this agreement at the conclusion of initial
Six months from the execution date of the agreement by providing the other party a 30-day
notification of "Intent to Terminate Agreement". Not withstanding the above, the Company
may also terminate this Agreement at any time "without cause", upon providing RCG Thirty (30) days
written notice. In the event of such termination by the Company, "without cause", RCG shall be
entitled to receive Fifty (50%) percent of the remaining applicable period cash compensation to the
extent it is unpaid, pro-rated from the notice date of termination, along with reimbursement of any
non paid, out-of-pocket expenses up to the effective date of termination. Additionally, RCG will be
entitled to receive all unexercised vested, and Fifty (50%) percent of non-vested warrants or stock
options granted hereunder. Such payment is due and payable on the effective date of termination.

(b)  WITH CAUSE: In addition, the Company may terminate this Agreement at any
time upon written notice to RCG:

(i)  If RCG fails to cure any material breach of any provision of this Agreement
within Sixty (60) days from written notice from the Company  (unless such breach cannot be
reasonably cured within the Sixty (60) days and RCG is actively pursuing to cure said breach).

(ii) For RCG's substantial negligence, willful misconduct, fraud,
misappropriation, embezzlement, or other dishonesty;

(iii)  Upon a judicial ruling
of RCG's failure to have materially complied  with applicable law or regulation relating to the
Services it will perform and such action had an adverse, material and measurable negative impact on
the Company;

(iv)  Upon the filing by or
against RCG of a petition to have RCG adjudged as bankrupt or a petition for reorganization or
arrangement under any law relating to bankruptcy, and where any such involuntary petition is not
dismissed within 90 days.

Upon termination under subparagraph (b) of this paragraph 9, the Company shall
have no liability to RCG for Compensation accruing after such termination, and RCG shall have no
further entitlement thereto. Upon such termination, RCG shall be entitled to receive and retain only
accrued Compensation and vested Options to the date of such termination, to the extent it is unpaid,
together with expenses not yet reimbursed.

(c)  RCG may terminate this agreement at any time upon written notice to the
Company.

(i)  If the Company fails to cure any material breach of any provision of this
Agreement with Sixty (60) days from written notice from the  Company (unless such breach cannot be
reasonably cured within the Sixty (60) days and the Company is actively pursuing to cure said
breach);

(ii) For the Company's substantial negligence, willful misconduct, fraud or
misrepresentation; 

Such termination under 9(c)(i or ii) shall be deemed to be a termination by
the Company "without cause" as provided in paragraph 9 (a) above.

(iii) Upon a judicial ruling of Company's failure to have materially complied
with any applicable law or regulation relating to the Services being provided and such action had an
adverse, material and measurable negative impact on RCG ;

(iv)  Upon the filing by or
against the Company of a petition to have the Company adjudged as bankrupt or a petition for
reorganization or arrangement under any law relating to bankruptcy, and where any such involuntary
petition is not dismissed within 90 days.

(d)  RENEWAL. The Company
agrees to notify RCG Thirty (30) days prior to the end of the Eighteen month
period of its intent to not renew. Should the
Company fail to notify RCG, the contract will revert to a month-to-month agreement until
specifically renewed in writing or terminated with the Thirty (30) day notice. Such renewal or
month-to-month engagement shall be on the same terms and conditions contained herein, unless
modified and agreed in writing by both parties.

10.  RCG hereby fully discloses that certain associates, affiliates, officers and
employees of RCG are:

(a)  Licensed as Registered Securities Principals issued by the National
Association of Securities Dealers ("NASD"); and/or

(b)  Licensed as Registered Representatives issued by the NASD.

All NASD registrations are carried by SWS Financial Services, Inc., which is a
non-RCG affiliated NASD-registered broker/dealer.

RCG further discloses and the Company specifically acknowledges that RCG is
NOT a broker/dealer registered with the NASD or any other regulatory agency. Furthermore, in the
performance of Services under the terms and conditions of this agreement, such services shall not be
considered to be acting in any broker/dealer or underwriting capacity and therefore RCG is not
receiving any compensation from the Company as such.

11. The Company understands
and acknowledges that RCG provides other and similar consulting services to companies, which may or
may not conduct business and activities similar to those of the Company.  RCG is not required to
devote its full time and attention to the performance of its duties detailed in this agreement, and
may devote only so much of its time and attention as it deems reasonable or necessary.

12. As the services are being provided by an Arizona domiciled corporation, the
validity and interpretation of this letter agreement shall be governed by the laws of the State of
Arizona applicable to agreements made and to be fully performed therein.

13.  In the event of any controversy or dispute arising out of, or relating to
this Agreement or breach thereof, RCG and ABAX agree to settle such controversy by arbitration
pursuant to Arizona Revised Statutes, 12-1501 et seq. and in accordance with the rules, of
the American Arbitration Association governing commercial transactions then existing, to the extent
that such Rules are not inconsistent with said Statutes and this Agreement. Judgment upon the award
rendered under arbitration may be entered in any court having jurisdiction. The cost of the
arbitration procedure shall be borne by the losing party, or, if the decision is not clearly in
favor of one party or the other, the costs shall be borne as determined by the arbitrator. The
parties agree that the arbitration procedure provided herein shall be the sole and non-exclusive
remedy to resolve any controversy or dispute arising hereunder, and that the proper venue for such
arbitration proceeding shall be Maricopa County, Arizona.

14.  For the convenience of the parties, any number of counterparts of this
letter agreement may be executed by the parties hereto. Each such counterpart shall be deemed to be
an original instrument, but all such counterparts taken together shall constitute one and the same
letter agreement.

15.   Miscellaneous:

	Modification:   This Agreement sets forth the entire understanding of the parties with
respect to the subject matter hereof.  This Agreement may be amended only in writing signed by both
parties.

	Notices:   Any notices hereunder shall be sent to the Company and RCG at their
respective addresses set forth.   Any notice shall be given by registered or certified mail, postage
prepaid, and shall be deemed to have been given when received by the non-sending party.  Either
party may designate any other address to which notice shall be given, by giving written notice to
the other of such change in address in the manner herein provided.

	Waiver:   Any waiver by either party of a breach of any provision of this Agreement shall
not operate as or be construed to be a waiver of any other breach of that provision or of any breach
of any other provision of this Agreement.  The failure of a party to insist upon strict adherence to
any term of this Agreement on one or more occasions will not be considered a waiver or deprive that
party of the right thereafter to insist upon adherence to that term of any other term of this
Agreement.

	Relationship of the Parties: Nothing in this Agreement shall create any partnership or
joint venture between the parties hereto, it being understood and agreed that the parties are
independent contractors and neither has the authority to bind the other in any way.

	Entire agreement: This Agreement contains the entire agreement between the parties and
may not be altered or modified, except in writing and signed by the party to be charged thereby, and
supersedes any and all previous agreements between the parties.

If the foregoing correctly sets forth our agreement, please sign the enclosed
copy of the letter in the space provided and return it to us, whereupon all parties will be bound to
the terms of this engagement.

Confirmed and agreed to April 15, 2000

 

	
RCG Capital Markets Group,
Inc.
	
Abaxis, Inc.

	

	
By:
__________________________________

	
President and CEO
	
Title:
________________________________

FINANCIAL RELATIONS

SERVICES ATTACHMENT

 

By the of execution of this agreement, RCG Capital Markets Group, Inc. and/or
affiliates, (collectively "RCG") will serve as the non-exclusive Financial Relations Counsel for
Abaxis, Inc. ("ABAX" or "Company"). Consistent with the Abaxis, Inc... Financial Relations Campaign
Overview, RCG anticipates the following services will be attempted and/or implemented within the
scope of this engagement: 

	Assist the Company to identify and attempt to secure an underwriter for a
future securities offering.

	Outline, define, establish and implement a well-coordinated "Financial Relations"
campaign. 

	Create, produce, enhance existing and distribute high-quality, due diligence and marketing
materials, which specifically include, but are not limited to a "Corporate Profile"
document and the Company's "Investor Package". 

	Specifically develop, proactively execute and maintain a targeted securities professionals
telecommunications and information campaign specifically directed toward retail brokers,
institutional investors, third-party portfolio managers, micro- and small-cap mutual funds, buy and
sell side analysts and the financial media as circumstances dictate. RCG will allocate and utilize
its proprietary securities industry, micro-, small- and mid cap company oriented, databases and fax-
line communications programs. (This will include responding to all incoming investment community
inquiries and fulfillment of information and data requests.)

	RCG will attempt to secure investment recommendations and on-going corporate research coverage
from national or regional investment banking or research firms and/or an endorsement by an
investment newsletter publication. 

	When appropriate, plan, arrange and coordinate specific follow-on road-show presentations to
strategically targeted primary metropolitan financial markets.

	RCG will be responsible for the origination and release of financial industry data and financial
media information on behalf of Abaxis, Inc.  RCG will also be responsible for editing (or writing)
all press releases and coordinating information disseminated to all media sources relating to the
securities industry and capital markets.  

	RCG will organize, monitor and follow-up all conference calls between the Company and RCG's
targeted segment of the investment community, in conjunction with material press releases, through a
teleconferencing service. (RCG will be responsible for faxing and/or emailing the invitations and
will follow up with calls to the recipients in an effort to expand the conference call
participation.) 

	Plan, arrange and coordinate periodic registered representative, institutional and/or other
securities professionals meetings, luncheons, dinners or special gatherings. 

	Implement periodic direct mailings which may include the most recent statistical information
reports, and any appropriate articles or press releases that have been released during the last
reported quarter.

	RCG will provide a period peer group analysis overview which delineates the financial relations
activities for the prior period including investment community feedback.

	Update all due diligence and marketing materials. RCG anticipates updating Company information
on a regular basis as required when there are material changes or events that should be disseminated
to the investment community. 

	Implement a ABAX Internet Site on RCG's Internet Home Page, RCG Online. RCG Online will
also create an Internet link to the Company's home page. The purpose of these inclusions will be to
provide the investment community 24-hour access site to obtain up-to-date information about the
Company. 

 

RCG intends to perform the services and accomplish the specified goals within the scope of this
engagement. However, due to the nature and type of services being performed, RCG cannot guarantee,
nor can it be assumed that certain specific results will be realized with reference to increased
market valuation of ABAX securities.

(NASDAQ & LISTED COMPANY)

FINANCIAL RELATIONS

COMPENSATION ATTACHMENT

In consideration of the Financial Relations Services to be rendered pursuant hereto
Abaxis, Inc. agrees to promptly pay RCG the following compensation (the
"Compensation"):

	Cash Compensation.  During the term of this Agreement, the Company
shall pay RCG a monthly fee of $3,850 payable monthly in advance of services rendered and beginning
upon the commencement date of this Agreement (the "Retainer Fees").   

	Expense reimbursement. In addition, RCG
requires to be reimbursed on a direct cost basis, for other miscellaneous expenses. Abaxis will
remit $5,000 to RCG, which RCG will utilize as an escrow deposit for the express purpose of
indemnifying RCG in the event of late payment of monthly expenses by the Company. RCG will provide
the Company with a detailed breakdown of all reimbursable expenses incurred in the previous month by
the twentieth (20th) day of the following month of service. Abaxis agrees to reimburse
RCG within 15 days of receipt of detailed invoice each month. If Abaxis is delinquent in timely
reimbursement of expenses as defined above, RCG will have the right to withdraw from the escrow
account the applicable dollar amount to fully reimburse RCG. If reimbursement is not received by RCG
by the 25th day after the date of the invoice, Abaxis, will then remit to RCG an amount
equal to the expenses in question plus a penalty of 15% for delinquency. RCG will then replenish the
escrow account for the amount withdrawn to cover the delinquency. RCG can at its discretion
discontinue all representation activities on behalf of Company if RCG deems Abaxis to be routinely
delinquent in the timely payment of expenses and/or the monthly fees as stated above.

RCG will obtain prior approval from the
Company for all specific expense items and any single miscellaneous expense item in excess of $750.
RCG acknowledges and understands that the Company will have specific amounts budgeted for these
expenditures and will use it's best efforts to ensure those budget amounts are not exceeded.

(c)      Stock Warrants/Options. Upon execution of this, the Company will
grant RCG a non-forfeitable, non-
cancelable warrant/option (the "Warrants/Options") to acquire 150,000
shares of Abaxis common stock of which 75,000 shares will vest immediately and
the balance of 75,000 will be subject to the vesting provisions outlined below.  The Options issued
will possess an eight year expiration term and will provide RCG the right, until April 15, 2008, to
purchase common shares of the Company at a price of $7.75 for each share. The Company agrees to issue an options/warrants document which conforms
to and delineates the terms and conditions contained herein, within Thirty (30) days of this Agreement's execution date.
The Warrants/options will have the following vesting provisions:

45% - Upon completion of a financing for
Abaxis; whether public or private equity or any form of equity financing, including convertible
debt, with gross proceeds to the Company of at least $5 million accepted by the management team of
ABAX from any financing source;

 

320% - Upon confirmation of a 25% increase in the average daily trading volume of
the Company's stock over any 10 consecutive trading day period. (Baseline will be established by the
average daily trading volume of the 20 trading days prior to the execution of this engagement
agreement.

420% - Upon confirmation of corporate research coverage from Four (4) different buy- or sell-side
analysts or endorsement by an appropriate investment newsletter publication with a subscriber base
in excess of 3,000. (Vesting to be prorated at 105% for each item of coverage secured.)

210% - Upon securing confirmation of Four (4) new institutional investors or
third-party portfolio managers, each acquiring at least 1/2 of 1% of the Company's outstanding stock.
(Vesting to be prorated at 52.5 % for each investor secured.)

10% - Upon confirmation of a
positive financial (non-trade oriented) media event, such as an article in a national newspaper or
financial magazine publication of recognized standing in the financial and investment community or
television or radio media coverage on well recognized financial, investment or business programs.

215% - Upon securing confirmation of four (4) new non-wholesale market-makers.
(Vesting to be prorated at 6.253.75% for each new market-maker secured.)

 

The shares underlying the non-forfeitable, non-cancelable
warrant/option issued will be eligible for registration by demand registration
rights via a form S-3 registration statement and/or by non-proratable piggy-back registration rights should the Company file
an applicable registration. RCG agrees to pay 50% up to $5,000 in costs associated with the
S-3 registration. Such payment by RCG is due within 60 days the effective date of the registration
statement.  In the event that RCG provides a written request to exercise any portion or all of its
option position the Company hereby agrees to immediately effectuate such exercise and to file such
registration statement within 30 days of the request. 

In the event that ABAX is merged into or a controlling
interest is acquired by any entity, or there is a material change in ABAX management, meaning a
change in the CEO and the CFO, RCG will be immediately vested in all remaining options, including
those, which to that point have not yet been vested.

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