Document:

Exhibit 10.33

                              CONSULTING AGREEMENT

     This  Consulting Agreement ("Agreement") is made and entered into as of the
9th day of May, 2006 by and between CaganCo Incorporated, with an office located
at  903  Laguna  Street, Santa Barbara, California 93101-1404 ("Consultant") and
Trinity  Learning  Corporation  with  an  office  located  at 4101 International
Parkway, Carrollton, TX 75007 ("Company").  Company desires to retain Consultant
as  an  independent  contractor  to  perform consulting services for Company and
Consultant  is  willing  to perform such services, on terms set forth more fully
below.  In  consideration  of  the mutual promises contained herein, the parties
agree  as  follows:

     1.     SERVICES.  Consultant  agrees  to  perform  for Company the services
            --------
described  in  Exhibit  A  (the  "Services").
               ----------

     2.     COMPENSATION.  Company agrees to pay Consultant the compensation set
            ------------
forth  in  Exhibit  A  (the  "Compensation") for the performance of the Services
           ----------
performed  on  or  after  the  date  hereof.

     3.     CONFIDENTIALITY.
            ---------------

     (a)     "Confidential  Information"  means  any  proprietary  information,
technical  data,  trade  secrets  or  know-how,  including,  but not limited to,
research, product plans, products, services, customers, customer lists, markets,
software,  developments,  inventions,  processes, formulas, technology, designs,
drawings,  engineering, hardware configuration information, marketing, finances,
strategies  or other business information disclosed by the either party (Company
or  Consultant) to the other or otherwise received, devel-oped or derived during
the  performance of the Services, whether prior to, on or after the date hereof,
either  directly  or indirectly in writing, orally or by drawings or inspec-tion
of  parts  or  equipment.

     (b)     Consultant shall hold all Company's Confidential Information in the
strictest  confidence  and  shall  not, during or subsequent to the term of this
Agreement,  use  Company's  Confidential  Information for any purpose whatsoever
other  than  the  performance  on  behalf of Company of the Services or disclose
Company's  Confidential  Information to employees of Consultant except on a need
to  know  basis or to third parties, and it is understood that such Confidential
Information  shall  remain  the  sole  property  of Company.  Consultant further
agrees to take all reasonable precautions to prevent any unauthorized disclosure
of  such  Confidential  Information  including,  but not limited to, having each
employee  of  Consultant,  if  any, with access to any Confidential Information,
execute  a  nondisclosure  agreement  containing  provisions  in Company's favor
substantially  similar  to  Sections 3, 4 and 5 of this Agreement.  Confidential
Information does not include information which (i) is known to Consultant at the
time  of disclosure to Consultant by Company, (ii) has become publicly known and
made  generally  available  through  no wrongful act of Consultant, or (iii) has
been  rightfully received by Consultant from a third party who is autho-rized to
make  such  disclosure.  Without  Company's  prior  written approval, Consultant
shall  not  directly  or  indirectly  disclose  to  anyone the existence of this
Agreement  or  the  fact  that  Consultant  has  this  arrangement with Company.

     (c)     Consultant agrees that Consultant will not, during the term of this
Agreement,  improperly  use  or  disclose  any  proprietary information or trade
secrets  of  any former or current employer or other person or entity with which
Consultant  has  an agreement or duty to keep in confidence information acquired
by  Consultant  in  confidence, if any, and that Consultant shall not bring onto
the  premises  of  Company  any unpublished document or proprietary informa-tion
belonging  to  such employer, person or entity unless consented to in writing by
such employer, person or entity.  Consultant shall indemnify Company and hold it
harmless  from  and  against  all  claims,  liabilities,  damages  and expenses,
including  reasonable  attorney's  fees  and costs of suit, arising out of or in
connection  with  any  violation  or claimed violation of a third party's rights
resulting  in  whole  or  in  part  from  Company's  use  of the work product of
Consultant  or  any  third  party  under  this  Agreement.

     (d)     Upon  the  termination of this Agreement, or upon Company's earlier
request,  Consultant  shall  deliver  to  Company  all of Company's property and
Confidential  Information  in  tangible  form  that  Consultant  may  have  in
Consultant's  possession  or  control.

     4.     OWNERSHIP.
            ---------

     (a)     Consultant  agrees  that  all  works of authorship, notes, records,
drawings, designs, inventions, improvements, developments, discoveries and trade
secrets,  as  well  as  all  deriva-tives  and modifications thereof and thereto
(collectively,  "Inventions"),  conceived,  made  or  discovered  by Consultant,
solely  or  in  collaboration  with  others,  which  relate in any manner to the
business of Company that Consultant may be directed to undertake, investigate or
experiment  with,  in  performing the Services hereunder whether prior to, on or
subsequent  to  the  date  hereof,  as  well as all intellectual property rights
therein  and  thereto,  are  the  sole  property of Company.  Consultant further
agrees  to  assign  (or  cause  to  be assigned) and does hereby assign fully to
Company  all  such  Inventions  and any copyrights, patents, mask work rights or
other  intellectual  property  rights  relating  thereto.

     (b)     Consultant  hereby  waives  any and all moral rights, including the
right  to  identification of authorship or limitation on subsequent modification
that  Consultant  (or  its  employees) has or may have in any materials or other
deliverables  assigned  to  Company  hereunder.

     5.     ORIGINALITY AND NONINFRINGEMENT.  Consultant represents and warrants
            -------------------------------
that  all  materials  and  Services  provided  hereunder  will  be original with
Consultant  and  that  the  use  thereof  by  Company  or  its  customers,
representatives,  distributors  or  dealers  will  not  infringe  any  patent,
copyright, trade secret or other intellectual property right of any third party.

     6.     RECORDS  AND REPORTS.  Consultant shall maintain at least reasonable
            --------------------
minimal  records related to Consultant's work in progress and the expenditure of
time  per person and materials and other costs in performing Services hereunder.
Consultant  agrees  that  Company  or any of its duly authorized representatives
shall  have  access during or after the termination of this Agreement to and the
right  to  examine  any  pertinent  books,  documents,  papers  and  records  of
Consultant  involving  transactions  related  to  or  in  connection  with  this
Agreement.  In addition, Consultant agrees that it will from time to time during
the  term  of this Agreement or any extension thereof keep Company advised as to
Consultant's  progress  in performing the Services hereunder and that Consultant
will, as requested by Company, prepare written reports with respect thereto in a
form  reasonably  requested by Company.  It is understood that the time required
in  the  preparation of such written reports shall be considered time devoted to
the  performance  of  Consultant's  Services  hereunder.

     7.     CONFLICTING  OBLIGATIONS.      Consultant  certifies that Consultant
            ------------------------
has  no  outstanding agreement or obligation that is in conflict with any of the
provisions  of  this  Agreement,  or  that  would  adversely affect Consultant's
performance  hereunder,  and  Consultant  agrees that Consultant shall not enter
into  any  such  conflicting  Agreement  during  the  term  of  this  Agreement.

     8.     TERM  AND  TERMINATION.
            ----------------------

     (a)     The term of this Agreement shall be from the date hero and continue
on  a  month to month as contracted thereafter until terminated by either party.

     (b)     Company  shall  pay  Consultant  on a semi monthly basis or as
otherwise  agreed.

     (c)     Consultant  agrees  to  cause Dennis Cagan to provide Services on a
full  time  basis  to  Company.

     (d)     Upon  such  termination all rights and duties of the parties toward
each  other  shall  cease  except:

          (i)     that  Company shall be obliged to pay, within thirty (30) days
of the effective date of termination, all amounts owing to Consultant for unpaid
Services  and  related  expenses,  if  any, in accordance with the provisions of
Section  2  hereof;  and

          (ii)     Sections 2, 3, 4, 5, 6, 7, 8, 11, 12, 14 and 15 shall survive
termination  of  this  Agreement.

     9.     ASSIGNMENT.  Consultant  acknowledges  that  the  Services  to  be
            ----------
performed  hereunder are of a special and unique nature.  Neither this Agreement
nor  any  right  hereunder  or interest herein may be assigned or transferred by
Consultant  without  the express written consent of Company.  Any such attempted
assignment  shall  be  void.

     10.     INDEPENDENT CONTRACTOR.  Nothing in this Agreement shall in any way
             ----------------------
be construed to constitute Consultant as an agent, employee or representative of
Company,  but Consultant shall perform the Services here-under as an independent
contractor.  Since  Consultant  is  not an employee of Company, it is understood
that Consultant is not entitled to any employee benefits during the term of this
Agreement.  Consultant  agrees  to  furnish (or reimburse Company for) all tools
and  materials  necessary  to  accomplish  this  contract,  and  shall incur all
expenses  associated with performance, except as expressly provided in Exhibit A
                                                                       ---------
(the"Expenses"),  attached  hereto  and  incorporated  herein  by  reference.
Consultant  acknowledges  and  agrees  that Consultant is obligated to report as
income  all  compensation received by Consultant pursuant to this Agreement, and
Consultant agrees to indemnify Company and hold it harmless to the extent of any
obligation  imposed  on Company (i) to pay in withholding taxes or similar items
or  (ii)  resulting  from Consult-ants being determined not to be an independent
contractor.  In  the  performance  of  all  Services hereunder, Consultant shall
comply  with  all  applic-able  laws  and  regulations.

     11.     EQUITABLE  RELIEF.  Both  parties agree that it would be impossible
             -----------------
or  inadequate  to  measure  and  calculate  the  damages from any breach of the
covenants  set  forth  in  Sections  3, 4 or 5 herein. Accordingly, both parties
agree  that if the other breaches any of Sections 3, 4 or 5, the other will have
available,  in  addition  to  any  other right or remedy available, the right to
obtain  from  any court of competent jurisdiction an injunction restraining such
breach  or  threatened  breach  and  specific performance of any such provision.
Both  parties  further agree that no bond or other security shall be required in
obtaining  such equitable relief and both hereby consent to the issuance of such
injunction  and  to  the  ordering  of  such  specific  performance.

     12.     NOTICES.  Any notices required or permitted by this Agreement shall
             -------
be  in writing and shall be addressed to the other party at the address shown at
the  beginning  of  this Agreement or such other address of which such party may
notify  the  other  and  shall  be deemed given upon delivery or, where delivery
cannot  be  accomplished  due  to  the  fault  of  the addressee, upon attempted
delivery.

     12.     INDEMNIFICATION.  Consultant  agrees to indemnify and hold harmless
             ---------------
Company,  its  officers,  agents  and  employees from and against all liability,
loss,  cost,  damages, claims or expenses (including reasonable attorney's fees)
on account of any injury to Consultant or to any agent, employee or associate of
Consultant or to Consultant's property arising out of or resulting in any manner
from  or  occurring  in connection with Consultant's performance of the Services
hereunder,  except to the extent caused by the negligence or other tortuous acts
of  Company  or  its  agents  or  employees.

     13.     MISCELLANEOUS.  This  is  the  entire agreement between the parties
             -------------
relating  to  the  subject  matter  hereof  and no waiver or modification of the
Agreement  shall be valid unless in writing signed by each party.  The waiver of
a  breach  of  any  term  hereof shall in no way be construed as a waiver of any
other  term  or breach hereof.  If any provision of this Agreement shall be held
by  a  court  of  competent  jurisdiction  to  be contrary to law, the remaining
provisions  of  this  Agreement  shall remain in full force and effect.  Neither
party  shall  have  any  liability  for  its  failure to perform its obligations
hereunder  when  due  to  circumstances  beyond Consultant's reasonable control.
This  Agreement  shall  inure to the benefit of and be binding upon each party's
successors  and assigns.  This Agreement is governed by the laws of the State of
California  without  reference  to  conflict  of  laws principles.  All disputes
arising  out of this Agreement shall be subject to the exclusive jurisdiction of
the state and Federal courts located in Santa Barbara County, California, United
States  of  America  and  the  parties  agree  and  submit  to the per-sonal and
exclusive  jurisdiction  and  venue  of  these  courts.

     IN  WITNESS  WHEREOF, the parties hereto have executed this Agreement as of
the  day  and  year  first  above  written.

CONSULTANT                               COMPANY

CaganCo  Incorporated                    __________________________________

By: __________________________________   By: ______________________________
     Dennis  J.  Cagan,  President
                                         Name: ____________________________

                                         Title: ___________________________

<PAGE>

                                   EXHIBIT A
                                   ---------

     SERVICES  AND  COMPENSATION

1.     CONTACT.     Consultant's  principal  Company  contact:
       -------
                    Name:     ____________________________________
                    Title:    ____________________________________

2.     SERVICES
       --------

Consultant  agrees  to  cause  Dennis  Cagan  to  provide  full time services as
President  and  Chief  Executive  Officer  of  Company and such related services
incident  thereto.

It  is  anticipated  that  the  required services will be performed primarily at
Company  offices.

3.     COMPENSATION
       ------------

Company  will  pay Consultant for all work at a rate of $ 20,000 per month based
upon  full  time  services.

Company shall reimburse Consultant for all reasonable expenses on the same basis
as other comparable Company executives.  Authorized expenses will include actual
out-of-pocket  expenses for travel from Santa Barbara, hotel, car rental, meals,
entertainment  and telephone use (including use of personal cellular phone) from
other  than  Company  facilities.

4.     AT-WILL
       -------

Consultant is working for Company on an "at-will" basis and may be terminated at
any  time  with  thirty (30) days advance notice.  Consultant is not entitled to
any  severance.

<PAGE>EXHIBIT 10.21

Abaxis, Inc.

2005 Equity Incentive Plan

 TABLE OF CONTENTS

	  
	  
	  
	 Page

	  
	  
	  
	

    
	 1.
	 Establishment, Purpose and Term of Plan
	 1

	  
	  
	 

	  
	 1.1
	 Establishment
	 1

	 
	 1.2
	 Purpose
	 1

	  
	 1.3
	 Term of Plan
	 1

	  
	  
	  
	 

	 2.
	 Definitions and Construction
	 1

	  
	  
	 

	  
	 2.1
	 Definitions
	 1

	  
	 2.2
	 Construction
	 7

	 
	  
	  
	 

	 3.
	 Administration
	 7

	  
	  
	 

	  
	 3.1
	 Administration by the Committee
	 7

	  
	 3.2
	 Authority of Officers
	 7

	  
	 3.3
	 Administration with Respect to Insiders
	 7

	  
	 3.4
	 Committee Complying with Section 162(m)
	 7

	 
	 3.5
	 Powers of the Committee
	 8

	  
	 3.6
	 Option or SAR Repricing
	 9

	  
	 3.7
	 Indemnification
	 9

	  
	  
	  
	 

	 4.
	 Shares Subject to Plan
	 9

	  
	  
	 

	  
	 4.1
	 Maximum Number of Shares Issuable
	 9

	 
	 4.2
	 Adjustments for Changes in Capital Structure
	 10

	  
	  
	  
	 

	 5.
	 Eligibility and Award Limitations
	 10

	  
	  
	 

	  
	 5.1
	 Persons Eligible for Awards
	 10

	  
	 5.2
	 Participation
	 11

	 
	 5.3
	 Incentive Stock Option Limitations
	 11

	  
	 5.4
	 Award Limits
	 11

	  
	  
	  
	 

	 6.
	 Terms and Conditions of Options
	 12

	  
	  
	 

	  
	 6.1
	 Exercise Price
	 13

	  
	 6.2
	 Exercisability and Term of Options
	 13

	 
	 6.3
	 Payment of Exercise Price
	 13

	  
	 6.4
	 Effect of Termination of Service
	 14

	  
	 6.5
	 Transferability of Options
	 14

	  
	  
	  
	 

	 7.
	 Terms and Conditions of Stock Appreciation Rights
	 14

	  
	  
	 

	 
	 7.1
	 Types of SARs Authorized
	 15

	  
	 7.2
	 Exercise Price
	 15

	  
	 7.3
	 Exercisability and Term of SARs
	 15

	  
	 7.4
	 Deemed Exercise of SARs
	 15

	  
	 7.5
	 Effect of Termination of Service
	 15

	  
	 7.6
	 Nontransferability of SARs
	 15

	 
	  
	  
	 

 -i-

 

 TABLE OF CONTENTS

  (continued)

	  
	  
	 Page

	  
	  
	

    
	 8.
	 Terms and Conditions of Restricted Stock Awards
	 16

	  
	  
	 

	 
	 8.1
	 Types of Restricted Stock Awards Authorized
	 16

	  
	 8.2
	 Purchase Price
	 16

	  
	 8.3
	 Purchase Period
	 16

	  
	 8.4
	 Vesting and Restrictions on Transfer
	 16

	  
	 8.5
	 Voting Rights; Dividends and Distributions
	 16

	  
	 8.6
	 Effect of Termination of Service
	 17

	 
	 8.7
	 Nontransferability of Restricted Stock Award Rights
	 17

	  
	  
	  
	 

	 9.
	 Terms and Conditions of Performance Awards
	 17

	  
	  
	 

	  
	 9.1
	 Types of Performance Awards Authorized
	 17

	  
	 9.2
	 Initial Value of Performance Shares and Performance Units
	 17

	 
	 9.3
	 Establishment of Performance Period, Performance Goals and Performance Award Formula
	 18

	  
	 9.4
	 Measurement of Performance Goals
	 18

	  
	 9.5
	 Settlement of Performance Awards
	 19

	  
	 9.6
	 Voting Rights; Dividend Equivalent Rights and Distributions
	 19

	  
	 9.7
	 Effect of Termination of Service
	 20

	  
	 9.8
	 Nontransferability of Performance Awards
	 20

	 
	  
	  
	 

	 10.
	 Terms and Conditions of Restricted Stock Unit Awards
	 21

	  
	  
	 

	  
	 10.1
	 Grant of Restricted Stock Unit Awards
	 21

	  
	 10.2
	 Vesting
	 21

	  
	 10.3
	 Voting Rights, Dividend Equivalent Rights and Distributions
	 21

	 
	 10.4
	 Effect of Termination of Service
	 22

	  
	 11.6
	 Settlement of Restricted Stock Unit Awards
	 22

	  
	 10.6
	 Nontransferability of Restricted Stock Unit Awards
	 22

	  
	  
	  
	 

	 11.
	 Deferred Compensation Awards
	 22

	  
	  
	 

	 
	 11.1
	 Establishment of Deferred Compensation Award Programs
	 22

	  
	 11.2
	 Terms and Conditions of Deferred Compensation Awards
	 23

	  
	  
	  
	 

	 12.
	 Other Stock-Based Awards
	 24

	  
	  
	 

	 13.
	 Change in Control
	 24

	  
	  
	 

	 
	 13.1
	 Effect of Change in Control on Options and SARs
	 24

	  
	 13.2
	 Effect of Change in Control on Restricted Stock Awards
	 25

	  
	 13.3
	 Effect of Change in Control on Performance Awards
	 25

	  
	 13.4
	 Effect of Change in Control on Restricted Stock Unit Awards
	 25

	  
	 13.5
	 Effect of Change in Control on Deferred Compensation Awards
	 25

	 
	  
	  
	 

 ii

 

 TABLE OF CONTENTS

  (continued)

	  
	  
	 Page

	  
	  
	

    
	 14.
	 Compliance with Securities Law
	 26

	  
	  
	 

	15.
	 Tax Withholding
	 26

	  
	  
	 

	  
	 15.1
	 Tax Withholding in General
	 26

	  
	 15.2
	 Withholding in Shares
	 26

	  
	  
	  
	 

	 16.
	 Amendment or Termination of Plan
	 26

	  
	  
	 

	17.
	 Miscellaneous Provisions
	 27

	  
	  
	 

	  
	 17.1
	 Repurchase Rights
	 27

	  
	 17.2
	 Provision of Information
	 27

	  
	 17.3
	 Rights as Employee, Consultant or Director
	 27

	  
	 17.4
	 Rights as a Shareholder
	 27

	 
	17.5
	Fractional Shares
	27

	 
	17.6
	Severability
	28

	 
	17.7
	Beneficiary Designation
	28

	 
	17.8
	Unfunded Obligation
	28

	 
	17.9
	Choice of Law
	28

iii

Abaxis, Inc.
2005 Equity Incentive Plan

          1.     ESTABLISHMENT,
 PURPOSE   AND TERM OF PLAN.

                  1.1     Establishment. 
The Abaxis, Inc. 2005 Equity Incentive Plan (the “Plan”) is hereby established effective as of its approval
by the shareholders of the Company (the “Effective Date”).  The Plan is the successor to the
Company’s 1998 Stock Option Plan and its share reserve.

                  1.2     Purpose. 
The purpose of the Plan is to advance the interests of the Participating Company Group and its shareholders by providing an incentive
to attract and retain the best qualified personnel to perform services for the Participating Company Group, by motivating such
persons to contribute to the growth and profitability of the Participating Company Group, by aligning their interests with interests
of the Company’s shareholders, and by rewarding such persons for their services by tying a significant portion of their total
compensation package to the success of the Company.  The Plan seeks to achieve this purpose by providing for Awards in the form
of Options, Stock Appreciation Rights, Restricted Stock Awards, Performance Shares, Performance Units, Restricted Stock Units,
Deferred Compensation
Awards and other Stock-Based Awards as described below.

                  1.3     Term
of Plan.  The Plan shall continue in effect until the earlier of its termination by the Board or the date on which all of
the shares of Stock available for issuance under the Plan have been issued and all restrictions on such shares under the terms of the
Plan and the agreements evidencing Awards granted under the Plan have lapsed.  However, all Awards shall be granted, if at all,
within ten (10) years from the Effective Date.

          2.     DEFINITIONS
AND CONSTRUCTION.

                  2.1     Definitions.
 Whenever used herein, the following terms shall have their respective meanings set forth below:

                            (a)     “Affiliate”
means (i) an entity, other than a Parent Corporation, that directly, or indirectly through one or more intermediary entities,
controls the Company or (ii) an entity, other than a Subsidiary Corporation, that is controlled by the Company directly, or
indirectly through one or more intermediary entities.  For this purpose, the term “control” (including the term
“controlled by”) means the possession, direct or indirect, of the power to direct or cause the direction of the management
and policies of the relevant entity, whether through the ownership of voting securities, by contract or otherwise; or shall have such
other meaning assigned such term for the purposes of registration on Form S-8
under the Securities Act.

                            
(b)     “Award” means any Option, SAR, Restricted Stock Award, Performance Share,
Performance Unit, Restricted Stock Unit or Deferred Compensation Award or other Stock-Based Award granted under the Plan.

1

                            
(c)     “Award Agreement” means a written agreement between the Company and a
Participant setting forth the terms, conditions and restrictions of the Award granted to the Participant.

                            
(d)     “Board” means the Board
of Directors of the Company.

                            
(e)     “Change in Control” means, unless otherwise defined by the
Participant’s Award Agreement or contract of employment or service, an Ownership Change Event or a series of related Ownership
Change Events (collectively, the “Transaction”) wherein the shareholders of the Company immediately before the Transaction
do not retain immediately after the Transaction, in substantially the same proportions as their ownership of shares of the
Company’s voting stock immediately before the Transaction, direct or indirect beneficial ownership of more than fifty percent
(50%) of the total combined voting power of the outstanding voting stock of the Company or the corporation or corporations to which
the assets of the Company were transferred
(the “Transferee Corporation(s)”), as the case may be.  For purposes of the preceding sentence, indirect beneficial
ownership shall include, without limitation, an interest resulting from ownership of the voting stock of one or more corporations
which, as a result of the Transaction, own the Company or the Transferee Corporation(s), as the case may be, either directly or
through one or more subsidiary corporations.  The Board shall have the right to determine whether multiple sales or exchanges of
the voting stock of the Company or multiple Ownership Change Events are related, and its determination shall be final, binding and
conclusive.

                            
(f)     “Code” means the Internal Revenue Code of 1986, as amended, and any
applicable regulations promulgated thereunder.

                            
(g)     “Committee” means the Compensation Committee or other committee of the Board
duly appointed to administer the Plan and having such powers as shall be specified by the Board.  If no committee of the Board
has been appointed to administer the Plan, the Board shall exercise all of the powers of the Committee granted herein, and, in any
event, the Board may in its discretion exercise any or all of such powers.

                            
(h)     “Company” means Abaxis, Inc., a California corporation, or any successor
corporation thereto.

                            
(i)     “Consultant” means a person engaged to provide consulting or advisory
services (other than as an Employee or a member of the Board) to a Participating Company, provided that the identity of such person,
the nature of such services or the entity to which such services are provided would not preclude the Company from offering or selling
securities to such person pursuant to the Plan in reliance on registration on a Form S-8 Registration Statement under the
Securities Act.

                            
(j)     “Deferred Compensation Award” means an award of Stock Units granted to a
Participant pursuant to Section 11 of the Plan.

                            
(k)     “Director” means a member of the Board.

2

                            
(l)     “Disability” means the permanent and total disability of the Participant,
within the meaning of Section 22(e)(3) of the Code.

                            
(m)     “Dividend Equivalent” means a credit, made at the discretion of the
Committee or as otherwise provided by the Plan, to the account of a Participant in an amount equal to the cash dividends paid on one
share of Stock for each share of Stock represented by an Award held by such Participant.

                            
(n)     “Employee” means any person treated as an employee (including an Officer or
a member of the Board who is also treated as an employee) in the records of a Participating Company and, with respect to any
Incentive Stock Option granted to such person, who is an employee for purposes of Section 422 of the Code; provided, however,
that neither service as a member of the Board nor payment of a director’s fee shall be sufficient to constitute employment for
purposes of the Plan.  The Company shall determine in good faith and in the exercise of its discretion whether an individual has
become or has ceased to be an Employee and the effective date of such individual’s employment or termination of employment, as
the case may be. 
For purposes of an individual’s rights, if any, under the Plan as of the time of the Company’s determination, all such
determinations by the Company shall be final, binding and conclusive, notwithstanding that the Company or any court of law or
governmental agency subsequently makes a contrary determination.

                            
(o)     “Exchange Act” means the Securities Exchange Act of 1934, as
amended.

                            
(p)     “Fair Market Value” means, as of any date, the value of a share of Stock or
other property as determined by the Committee, in its discretion, or by the Company, in its discretion, if such determination is
expressly allocated to the Company herein, subject to the following:

                                        (i)     Except
as otherwise determined by the Committee, if, on such date, the Stock is listed on a national or regional securities exchange or
market system, the Fair Market Value of a share of Stock shall be the closing price of a share of Stock as quoted on the New York
Stock Exchange or such other national or regional securities exchange or market system constituting the primary market for the Stock,
as reported in The Wall Street Journal or such other source as the Company deems reliable.  If the relevant date does not
fall on a day on which the Stock has traded on such securities exchange or market system, the date on which the Fair Market Value
shall be established shall be the last
day on which the Stock was so traded prior to the relevant date, or such other appropriate day as shall be determined by the
Committee, in its discretion.

                                        
(ii)   Notwithstanding the foregoing, the Committee may, in its discretion, determine the Fair Market Value on the
basis of the opening, closing, high, low or average sale price of a share of Stock or the actual sale price of a share of Stock
received by a Participant, on such date, the preceding trading day, the next succeeding trading day or an average determined over a
period of trading days.  The Committee may vary its method of determination of the Fair Market Value as provided in this Section
for different purposes under the Plan.

3

                                        
(iii)  If, on such date, the Stock is not listed on a national or regional securities exchange or market system, the Fair
Market Value of a share of Stock shall be as determined by the Committee in good faith without regard to any restriction other than a
restriction which, by its terms, will never lapse.

                            
(q)     “Incentive Stock Option” means an Option intended to be (as set forth in the
Award Agreement) and which qualifies as an incentive stock option within the meaning of Section 422(b) of the Code.

                            
(r)     “Insider” means an Officer, a Director or any other person whose
transactions in Stock are subject to Section 16 of the Exchange Act.

                            
(s)     “Net-Exercise” means a procedure by which the Participant will be issued a
number of shares of Stock determined in accordance with the following formula:

                                        X
= Y(A-B)/A, where 

                                        X
= the number of shares of Stock to be issued to the Participant upon exercise of the Option;

                                        Y
= the total number of shares with respect to which the Participant has elected
to exercise the Option;

                                        A
= the Fair Market Value of one (1) share of Stock;

                                        B
= the exercise price per share (as defined in the Participant’s Award Agreement).

                            
(t)     “Nonemployee Director” means a Director who is not an Employee.

                            
(u)     “Nonstatutory Stock Option” means an Option not intended to be (as set forth
in the Award Agreement) an incentive stock option within the meaning of Section 422(b) of the Code.

                            
(v)     “Officer” means any person designated by the Board as an officer of the
Company.

                            
(w)     “Option” means the
right to purchase Stock at a stated price for a specified period of time granted
to a Participant pursuant to Section 6 of the Plan.  An Option may be
either an Incentive Stock Option or a Nonstatutory Stock Option.

                            
(x)     “Option Expiration Date” means the date of expiration of the Option’s
term as set forth in the Award Agreement.

                            
(y)     “Ownership Change Event” shall be deemed to have occurred if any of the
following occurs with respect to the Company:

                                        
(i)     the direct or indirect sale or exchange in a single or series of related transactions by the
shareholders of the Company of more than fifty percent (50%) of the voting stock of the Company;

                                        
(ii)    a merger or consolidation in which the Company is a party;

4

                                        
(iii)   the sale, exchange, or transfer of all or substantially all of the assets of the Company; or

                                        
(iv)   a liquidation or dissolution of the Company.

                            
(z)     “Parent Corporation” means any present or future “parent
corporation” of the Company, as defined in Section 424(e) of the Code.

                            
(aa)   “Participant” means any eligible person who has been granted one or more
Awards.

                            
(bb)  “Participating Company” means the Company or any Parent Corporation, Subsidiary Corporation
or Affiliate.

                            
(cc)   “Participating Company Group” means, at any point in time, all entities collectively
which are then Participating Companies.

                            
(dd)  “Performance Award” means an Award of Performance Shares or Performance Units.

                            
     (ee)   “Performance Award Formula”
     means, for any Performance Award, a formula or table established by the
     Committee pursuant to Section 9.3 of the Plan which provides the basis
     for computing the value of a Performance Award at one or more threshold
     levels of attainment of the applicable Performance Goal(s) measured as of
     the end of the applicable Performance Period.

                            
     (ff)    “Performance Goal”
     means a performance goal established by the Committee pursuant to
     Section 9.3 of the Plan.

                            
     (gg)   “Performance Period” means a
     period established by the Committee pursuant to Section 9.3 of the Plan
     at the end of which one or more Performance Goals are to be
     measured.

                            
(hh)   “Performance Share” means a bookkeeping entry representing a right granted to a
Participant pursuant to Section 9 of the Plan to receive a payment equal to the value of a Performance Share, as determined by
the Committee, based on performance.

                            
(ii)     “Performance Unit” means a bookkeeping entry representing a right granted
to a Participant pursuant to Section 9 of the Plan to receive a payment equal to the value of a Performance Unit, as determined
by the Committee, based upon performance.

                            
(jj)     “Restricted Stock Award” means an Award of Restricted Stock.

                            
     (kk)   “Restricted Stock Unit” or
     “Stock Unit” means a bookkeeping entry representing
     a right granted to a Participant pursuant to Section 10 or
     Section 11 of the Plan, respectively, to receive a share of Stock on a
     date determined in accordance with the provisions of Section 10 or
     Section 11, as applicable, and the Participant’s Award
     Agreement.

5

                            
     (ll)     “Restriction
     Period” means the period established in accordance with
     Section 8.4 of the Plan during which shares subject to a Restricted
     Stock Award are subject to Vesting Conditions.

                            
     (mm)  “Retirement” means termination as
     an Employee of a Participating Company at age 55 or older, provided that
     the Participant was an Employee for at least five consecutive years prior
     to the date of such termination. 

                            
     (nn)   “Rule 16b-3” means
     Rule 16b-3 under the Exchange Act, as amended from time to time, or
     any successor rule or regulation.

                            
     (oo)   “SAR” or “Stock
     Appreciation Right” means a bookkeeping entry representing,
     for each share of Stock subject to such SAR, a right granted to a
     Participant pursuant to Section 7 of the Plan to receive payment in
     any combination of shares of Stock or cash of an amount equal to the
     excess, if any, of the Fair Market Value of a share of Stock on the date of
     exercise of the SAR over the exercise price.

                            
(pp)   “Section 162(m)” means Section 162(m) of the Code.

                            
(qq)   “Securities Act” means the Securities Act of 1933, as amended.

                            
     (rr)    “Service” means a
     Participant’s employment or service with the Participating Company
     Group, whether in the capacity of an Employee, a Director or a
     Consultant.  A Participant’s Service shall not be deemed to have
     terminated merely because of a change in the capacity in which the
     Participant renders such Service or a change in the Participating Company
     for which the Participant renders such Service, provided that there is no
     interruption or termination of the Participant’s Service. 
     Furthermore, a Participant’s Service shall not be deemed to have
     terminated if the Participant takes any military leave, sick leave, or
     other bona fide leave of absence approved by the Company.  However, if
     any such leave taken by a Participant exceeds ninety (90) days, then on the
     one hundred eighty-first (181st) day following the commencement of such
     leave any Incentive Stock Option held by the Participant shall cease to be
     treated as an Incentive Stock Option and instead shall be treated
     thereafter as a Nonstatutory Stock Option, unless the Participant’s
     right to return to Service with the Participating Company Group is
     guaranteed by statute or contract.  Notwithstanding the foregoing,
     unless otherwise designated by the Company or required by law, a leave of
     absence shall not be treated as Service for purposes of determining vesting
     under the Participant’s Award Agreement.  A Participant’s
     Service shall be deemed to have terminated either upon an actual
     termination of Service or upon the entity for which the Participant
     performs Service ceasing to be a Participating Company.  Subject to
     the foregoing, the Company, in its discretion, shall determine whether the
     Participant’s Service has terminated and the effective date of such
     termination.

                            
     (ss)    “Stock” means the
     common stock of the Company, as adjusted from time to time in accordance
     with Section 4.2 of the Plan.

                            
(tt)     “Stock-Based Awards” means any award that is valued in whole or in part by
reference to, or is otherwise based on, the Stock, including dividends on the Stock, but not limited to those Awards described in
Sections 6 through 11 of the Plan.

6

                            
(uu)   “Subsidiary Corporation” means any present or future “subsidiary corporation”
of the Company, as defined in Section 424(f) of the Code.

                            
(vv)   “Ten Percent Owner” means a Participant who, at the time an Option is granted to the
Participant, owns stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of a
Participating Company (other than an Affiliate) within the meaning of Section 422(b)(6) of the Code.

                            
     (ww)  “Vesting Conditions” mean those
     conditions established in accordance with Section 8.4 or Section 10.2
     of the Plan prior to the satisfaction of which shares subject to a
     Restricted Stock Award or Restricted Stock Unit Award, respectively, remain
     subject to forfeiture or a repurchase option in favor of the Company upon
     the Participant’s termination of Service.

                  2.2     Construction. 
Captions and titles contained herein are for convenience only and shall not affect the meaning or interpretation of any provision of
the Plan.  Except when otherwise indicated by the context, the singular shall include the plural and the plural shall include
the singular.  Use of the term “or” is not intended to be exclusive, unless the context clearly requires
otherwise.

          3.     ADMINISTRATION.

                  3.1     Administration
by the Committee.  The Plan shall be administered by the Committee.  All questions of interpretation of the Plan or of
any Award shall be determined by the Committee, and such determinations shall be final and binding upon all persons having an
interest in the Plan or such Award.

                  3.2     Authority
of Officers.  Any Officer shall have the authority to act on behalf of the Company with respect to any matter, right,
obligation, determination or election which is the responsibility of or which is allocated to the Company herein, provided the
Officer has apparent authority with respect to such matter, right, obligation, determination or election.  In addition, to the
extent specified in a resolution adopted by the Board, the Chief Executive Officer of the Company shall have the authority to grant
Awards to an Employee who is not an Insider and who is receiving a salary below the level which requires approval by the Committee;
provided that the terms of such Awards conform to guidelines established by the Committee and provided further that at the time of
making such Awards the Chief Executive
Officer also is a Director.

                  3.3     Administration
with Respect to Insiders.  With respect to participation by Insiders in the Plan, at any time that any class of equity
security of the Company is registered pursuant to Section 12 of the Exchange Act, the Plan shall be administered in compliance
with the requirements, if any, of Rule 16b-3.

                  3.4     Committee
Complying with Section 162(m).  While the Company is a “publicly held corporation” within the meaning of
Section 162(m), the Board may establish a Committee of “outside directors” within the meaning of Section 162(m)
to approve the grant of any Award which might reasonably be anticipated to result in the payment of employee remuneration that would
otherwise exceed the limit on employee remuneration deductible for income tax purposes pursuant to Section 162(m).

7

                  3.5     Powers
of the Committee.  In addition to any other powers set forth in the Plan and subject to the provisions of the Plan,
the Committee shall have the full and final power and authority, in its discretion:

                            
(a)     to determine the persons to whom, and the time or times at which, Awards shall be granted and the
number of shares of Stock or units to be subject to each Award;

                            
(b)     to determine the type of Award granted and to designate Options as Incentive Stock Options or
Nonstatutory Stock Options;

                            
(c)     to determine the Fair Market Value of shares of Stock or other property;

                            
(d)     to determine the terms, conditions and restrictions applicable to each Award (which need not be
identical) and any shares acquired pursuant thereto, including, without limitation, (i) the exercise or purchase price of shares
purchased pursuant to any Award, (ii) the method of payment for shares purchased pursuant to any Award, (iii) the method
for satisfaction of any tax withholding obligation arising in connection with Award, including by the withholding or delivery of
shares of Stock, (iv) the timing, terms and conditions of the exercisability or vesting of any Award or any shares acquired
pursuant thereto, (v) the Performance Award Formula and Performance Goals applicable to any Award and the extent to which such
Performance Goals have
been attained, (vi) the time of the expiration of any Award, (vii) the effect of the Participant’s termination of
Service on any of the foregoing, and (viii) all other terms, conditions and restrictions applicable to any Award or shares
acquired pursuant thereto not inconsistent with the terms of the Plan;

                            
(e)     to determine whether an Award will be settled in shares of Stock, cash, or in any combination
thereof;

                            
(f)     to approve one or more forms of Award Agreement;

                            
(g)     to amend, modify, extend, cancel or renew any Award or to waive any restrictions or conditions
applicable to any Award or any shares acquired pursuant thereto;

                            
(h)     to accelerate, continue, extend or defer the exercisability or vesting of any Award or any shares
acquired pursuant thereto, including with respect to the period following a Participant’s termination of Service;

                            
     (i)     without the consent of the affected
     Participant and notwithstanding the provisions of any Award Agreement to
     the contrary, to unilaterally substitute at any time a Stock Appreciation
     Right providing for settlement solely in shares of Stock in place of any
     outstanding Option, provided that such Stock Appreciation Right covers the
     same number of shares of Stock and provides for the same exercise price
     (subject in each case to adjustment in accordance with Section 4.2) as
     the replaced Option and otherwise provides substantially equivalent terms
     and conditions as the replaced Option, as determined by the
     Committee;

8

                            
(j)     to prescribe, amend or rescind rules, guidelines and policies relating to the Plan, or to adopt
sub-plans or supplements to, or alternative versions of, the Plan, including, without limitation, as the Committee deems necessary or
desirable to comply with the laws or regulations of or to accommodate the tax policy, accounting principles or custom of, foreign
jurisdictions whose citizens may be granted Awards; 

                            
(k)     to correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Award
Agreement and to make all other determinations and take such other actions with respect to the Plan or any Award as the Committee may
deem advisable to the extent not inconsistent with the provisions of the Plan or applicable law; and

                            
(l)     to delegate to the Chief Executive Officer or the Senior Vice President of Human Resources the
authority with respect to ministerial matters regarding the Plan and Awards made under the Plan.

                  3.6     Option
or SAR Repricing.  Without the affirmative vote of holders of a majority of the shares of Stock cast in person or by proxy
at a meeting of the shareholders of the Company at which a quorum representing a majority of all outstanding shares of Stock is
present or represented by proxy, the Board shall not approve a program providing for either (a) the cancellation of outstanding
Options or SARs and the grant in substitution therefore of new Options or SARs having a lower exercise price or (b) the
amendment of outstanding Options or SARs to reduce the exercise price thereof.  This paragraph shall not be construed to apply
to “issuing or assuming a stock option in a transaction to which section 424(a) applies,” within the meaning of Section 424
of the Code.

                  3.7     Indemnification. 
In addition to such other rights of indemnification as they may have as members of the Board or the Committee or as officers or
employees of the Participating Company Group, members of the Board or the Committee and any officers or employees of the
Participating Company Group to whom authority to act for the Board, the Committee or the Company is delegated shall be indemnified by
the Company against all reasonable expenses, including attorneys’ fees, actually and necessarily incurred in connection with the
defense of any action, suit or proceeding, or in connection with any appeal therein, to which they or any of them may be a party by
reason of any action taken or failure to act under or in connection with the Plan, or any right granted hereunder, and against all
amounts paid by them in
settlement thereof (provided such settlement is approved by independent legal counsel selected by the Company) or paid by them in
satisfaction of a judgment in any such action, suit or proceeding, except in relation to matters as to which it shall be adjudged in
such action, suit or proceeding that such person is liable for gross negligence, bad faith or intentional misconduct in duties;
provided, however, that within sixty (60) days after the institution of such action, suit or proceeding, such person shall offer to
the Company, in writing, the opportunity at its own expense to handle and defend the same.

9

               4.     SHARES SUBJECT TO PLAN.

                  4.1     Maximum
     Number of Shares Issuable.  Subject to adjustment as provided in
     Section 4.2, the maximum aggregate number of shares of Stock that may
     be issued under the Plan shall be four million eight hundred eighty-six
     thousand (4,886,000) and shall consist of authorized but unissued or
     reacquired shares of Stock or any combination thereof.  If an
     outstanding Award for any reason expires or is terminated or canceled
     without having been exercised or settled in full, or if shares of Stock
     acquired pursuant to an Award subject to forfeiture or repurchase are
     forfeited or repurchased by the Company, the shares of Stock allocable to
     the terminated portion of such Award or such forfeited or repurchased
     shares of Stock shall again be available for issuance under the Plan. 
     Shares of Stock shall not be deemed to have been issued pursuant to the
     Plan (a) with respect to any portion of an Award that is settled in
     cash or (b) to the extent such shares are withheld or reacquired by
     the Company in satisfaction of tax withholding obligations pursuant to
     Section 15.2.  Upon payment in shares of Stock pursuant to the
     exercise of an SAR, the number of shares available for issuance under the
     Plan shall be reduced only by the number of shares actually issued in such
     payment.  If the exercise price of an Option is paid by tender to the
     Company, or attestation to the ownership, of shares of Stock owned by the
     Participant, or by means of a Net-Exercise, the number of shares available
     for issuance under the Plan shall be reduced only by the net number of
     shares for which the Option is exercised.

                  4.2     Adjustments
for Changes in Capital Structure.  Subject to any required action by the shareholders of the Company, in the event of
any change in the Stock effected without receipt of consideration by the Company, whether through merger, consolidation,
reorganization, reincorporation, recapitalization, reclassification, stock dividend, stock split, reverse stock split, split-up,
split-off, spin-off, combination of shares, exchange of shares, or similar change in the capital structure of the Company, or in the
event of payment of a dividend or distribution to the shareholders of the Company in a form other than Stock (excepting normal cash
dividends) that has a material effect on the Fair Market Value of shares of Stock, appropriate adjustments shall be made in the
number and kind of shares subject to the
Plan and to any outstanding Awards, in the Award limits set forth in Section 5.4, and in the exercise or purchase price per
share under any outstanding Award in order to prevent dilution or enlargement of Participants’ rights under the Plan.  For
purposes of the foregoing, conversion of any convertible securities of the Company shall not be treated as “effected without
receipt of consideration by the Company.”  Any fractional share resulting from an adjustment pursuant to this
Section 4.2 shall be rounded down to the nearest whole number.  The Committee in its sole discretion, may also make such
adjustments in the terms of any Award to reflect, or related to, such changes in the capital structure of the Company or
distributions as it deems appropriate, including modification of Performance Goals, Performance Award Formulas and Performance
Periods.  The adjustments determined by the Committee pursuant to this Section 4.2 shall be final, binding and
conclusive.

          5.     ELIGIBILITY
AND AWARD LIMITATIONS.

                  5.1     Persons
Eligible for Awards.  Awards may be granted only to Employees, Consultants and Directors.  For purposes of the
foregoing sentence, “Employees,” “Consultants” and “Directors” shall include prospective Employees,
prospective Consultants and prospective Directors to whom Awards are granted in connection with written offers of an employment or
other service relationship with the Participating Company Group; provided, however, that no Stock subject to any such Award shall
vest, become exercisable or be issued prior to the date on which such person commences Service.  A Nonemployee Director Award
may be granted only to a person who, at the time of grant, is a Nonemployee Director.

10

                  5.2     Participation. 
Awards other than Nonemployee Director Awards are granted solely at the discretion of the Committee.  Eligible persons may be
granted more than one Award.  However, excepting Nonemployee Director Awards, eligibility in accordance with this Section shall
not entitle any person to be granted an Award, or, having been granted an Award, to be granted an additional Award.

                  5.3     Incentive
Stock Option Limitations.

                            
(a)     Persons Eligible.  An Incentive Stock Option may be granted only to a person who,
on the effective date of grant, is an Employee of the Company, a Parent Corporation or a Subsidiary Corporation (each being an
“ISO-Qualifying Corporation”).  Any person who is not an Employee of an ISO-Qualifying Corporation on
the effective date of the grant of an Option to such person may be granted only a Nonstatutory Stock Option.  An Incentive Stock
Option granted to a prospective Employee upon the condition that such person become an Employee of an ISO-Qualifying Corporation
shall be deemed granted effective on the date such person commences Service with an ISO-Qualifying Corporation, with an exercise
price determined as of
such date in accordance with Section 6.1.

                            
(b)     Fair Market Value Limitation.  To the extent that options designated as Incentive
Stock Options (granted under all stock option plans of the Participating Company Group, including the Plan) become exercisable by a
Participant for the first time during any calendar year for stock having a Fair Market Value greater than One Hundred Thousand
Dollars ($100,000), the portion of such options which exceeds such amount shall be treated as Nonstatutory Stock Options.  For
purposes of this Section, options designated as Incentive Stock Options shall be taken into account in the order in which they were
granted, and the Fair Market Value of stock shall be determined as of the time the option with respect to such stock is
granted.  If the Code is
amended to provide for a limitation different from that set forth in this Section, such different limitation shall be deemed
incorporated herein effective as of the date and with respect to such Options as required or permitted by such amendment to the
Code.  If an Option is treated as an Incentive Stock Option in part and as a Nonstatutory Stock Option in part by reason of the
limitation set forth in this Section, the Participant may designate which portion of such Option the Participant is exercising. 
In the absence of such designation, the Participant shall be deemed to have exercised the Incentive Stock Option portion of the
Option first.  Upon exercise, shares issued pursuant to each such portion shall be separately identified.

                  5.4     Award
Limits.

                            
(a)     Maximum Number of Shares Issuable Pursuant to Incentive Stock Options.  Subject
to adjustment as provided in Section 4.2, the maximum aggregate number of shares of Stock that may be issued under the Plan
pursuant to the exercise of Incentive Stock Options shall not exceed four million eight hundred eighty-six thousand (4,886,000)
shares.  The maximum aggregate number of shares of Stock that may be issued under the Plan pursuant to all Awards other than
Incentive Stock Options shall be the number of shares determined in accordance with Section 4.1, subject to adjustment as provided
in Section 4.2 and further subject to the limitation set forth in Section 5.4(b) below.

11

                            
(b)     Aggregate Limit on Full Value Awards.  Subject to adjustment as provided in
Section 4.2, in no event shall more than five hundred thousand (500,000) shares in the aggregate be issued under the Plan pursuant
to the exercise or settlement of Restricted Stock Awards, Restricted Stock Unit Awards and Performance Awards (“Full Value
Awards”).  Except with respect to a maximum of five percent (5%) of the shares of Stock authorized in this
Section 5.4(b), any Full Value Awards which vest on the basis of the Participant’s continued  Service shall not
provide for vesting which is any more rapid than annual pro rata vesting over a three (3) year period and any Full Value Awards which
vest upon the attainment of Performance
Goals shall provide for a Performance Period of at least twelve (12) months.

                            
(c)     Section 162(m) Award Limits.  The following limits shall apply to the grant of
any Award if, at the time of grant, the Company is a “publicly held corporation” within the meaning of
Section 162(m).

                                        
(i)     Options and SARs.  Subject to adjustment as provided in Section 4.2, no Employee
shall be granted within any fiscal year of the Company one or more Options or Freestanding SARs which in the aggregate are for more
than 100,000 shares.

                                        
(ii)    Restricted Stock and Restricted Stock Unit Awards.  Subject to adjustment as provided in
Section 4.2, no Employee shall be granted within any fiscal year of the Company one or more Restricted Stock Awards or Restricted
Stock Unit Awards, subject to Vesting Conditions based on the attainment of Performance Goals, for more than 500,000
shares.

                                        
(iii)   Performance Awards.  Subject to adjustment as provided in Section 4.2, no Employee shall be
granted (1) Performance Shares which could result in such Employee receiving more than 500,000 shares for each full fiscal year
of the Company contained in the Performance Period for such Award, or (2) Performance Units which could result in such Employee
receiving value equal to more than 500,000 shares for each full fiscal year of the Company contained in the Performance Period for
such Award.  No Participant may be granted more than one Performance Award for the same Performance Period.

                                        
(iv)   Stock-Based Awards.  Subject to adjustment as provided in Section 4.2, no Employee may be
granted Stock-Based Awards which could result in the Employee receiving more than 50,000 shares (or equivalent value) in any fiscal
year of the Company.

          6.     TERMS AND
CONDITIONS OF OPTIONS.

                  Options shall be
evidenced by Award Agreements specifying the number of shares of Stock covered thereby, in such form as the Committee shall from time
to time establish.  No Option or purported Option shall be a valid and binding obligation of the Company unless evidenced by a
fully executed Award Agreement.  Award Agreements evidencing Options may incorporate all or any of the terms of the Plan by
reference and shall comply with and be subject to the following terms and conditions:

12

                  6.1     Exercise
Price.  The exercise price for each Option shall be established
in the discretion of the Committee; provided, however, that (a) the exercise
price per share shall be not less than the Fair Market Value of a share of Stock
on the effective date of grant of the Option and (b) no Incentive Stock
Option granted to a Ten Percent Owner shall have an exercise price per share
less than one hundred ten percent (110%) of the Fair Market Value of a share of
Stock on the effective date of grant of the Option.  Notwithstanding the
foregoing, an Option (whether an Incentive Stock Option or a Nonstatutory Stock
Option) may be granted with an exercise price lower than the minimum exercise
price set forth above if such Option is granted pursuant to an assumption or
substitution for another option in a manner qualifying under the provisions of
Section 424(a) of the Code.

                  6.2     Exercisability
and Term of Options.  Options shall be exercisable at such time or times, or upon such event or events, and subject
to such terms, conditions, performance criteria and restrictions as shall be determined by the Committee and set forth in the Award
Agreement evidencing such Option; provided, however, that (a) no Option shall be exercisable after the expiration of ten (10)
years after the effective date of grant of such Option, (b) no Incentive Stock Option granted to a Ten Percent Owner shall be
exercisable after the expiration of five (5) years after the effective date of grant of such Option, and (c) no Option granted
to a prospective Employee, prospective Consultant or prospective Director may become exercisable prior to the date on which such
person commences Service. 
Subject to the foregoing, unless otherwise specified by the Committee in the grant of an Option, any Option granted hereunder shall
terminate ten (10) years after the effective date of grant of the Option, unless earlier terminated in accordance with its
provisions.

                  6.3     Payment
of Exercise Price.

                            
(a)     Forms of Consideration Authorized.  Except as otherwise provided below, payment
of the exercise price for the number of shares of Stock being purchased pursuant to any Option shall be made (i) in cash, by
check or in cash equivalent, (ii) by tender to the Company, or attestation to the ownership, of shares of Stock owned by the
Participant having a Fair Market Value not less than the exercise price, (iii) by delivery of a properly executed notice of
exercise together with irrevocable instructions to a broker providing for the assignment to the Company of the proceeds of a sale or
loan with respect to some or all of the shares being acquired upon the exercise of the Option (including, without limitation, through
an exercise complying
with the provisions of Regulation T as promulgated from time to time by the Board of Governors of the Federal Reserve System) (a
“Cashless Exercise”), (iv) by delivery of a properly executed notice of exercise electing a Net-Exercise,
(v) by such other consideration as may be approved by the Committee from time to time to the extent permitted by applicable law,
or (vi) by any combination thereof.  The Committee may at any time or from time to time grant Options which do not permit
all of the foregoing forms of consideration to be used in payment of the exercise price or which otherwise restrict one or more forms
of consideration.

                            
(b)     Limitations on Forms of Consideration.

                                        
(i)     Tender of Stock.  Notwithstanding the foregoing, an Option may not be exercised by
tender to the Company, or attestation to the ownership, of shares of Stock to the extent such tender or attestation would constitute
a violation of the provisions of any law, regulation or agreement restricting the redemption of the Company’s stock. 

13

                                        
(ii)    Cashless Exercise.  The Company reserves, at any and all times, the right, in the
Company’s sole and absolute discretion, to establish, decline to approve or terminate any program or procedures for the exercise
of Options by means of a Cashless Exercise, including with respect to one or more Participants specified by the Company
notwithstanding that such program or procedures may be available to other Participants.

                  6.4     Effect
of Termination of Service.

                            
(a)     Option Exercisability.  Subject to earlier termination of the Option as otherwise
provided herein and unless otherwise provided by the Committee, an Option shall be exercisable after a Participant’s termination
of Service only during the applicable time periods provided in the Award Agreement.

                            
(b)     Extension if Exercise Prevented by Law.  Notwithstanding the foregoing, unless
the Committee provides otherwise in the Award Agreement, if the exercise of an Option within the applicable time periods is prevented
by the provisions of Section 14 below, the Option shall remain exercisable until three (3) months (or such longer period of time
as determined by the Committee, in its discretion) after the date the Participant is notified by the Company that the Option is
exercisable, but in any event no later than the Option Expiration Date.

                            
(c)     Extension if Participant Subject to Section 16(b).  Notwithstanding the
foregoing, if a sale within the applicable time periods of shares acquired upon the exercise of the Option would subject the
Participant to suit under Section 16(b) of the Exchange Act, the Option shall remain exercisable until the earliest to occur of
(i) the tenth (10th) day following the date on which a sale of such shares by the Participant would no longer be subject to such
suit, (ii) the one hundred and ninetieth (190th) day after the Participant’s termination of Service, or (iii) the
Option Expiration Date.

                  6.5     Transferability
of Options.  During the lifetime of the Participant, an Option shall be exercisable only by the Participant or the
Participant’s guardian or legal representative.  Prior to the issuance of shares of Stock upon the exercise of an Option,
the Option shall not be subject in any manner to anticipation, alienation, sale, exchange, transfer, assignment, pledge, encumbrance,
or garnishment by creditors of the Participant or the Participant’s beneficiary, except transfer by will or by the laws of
descent and distribution.  

          7.     TERMS AND
CONDITIONS OF STOCK APPRECIATION RIGHTS.

                  Stock Appreciation
Rights shall be evidenced by Award Agreements specifying the number of shares of Stock subject to the Award, in such form as the
Committee shall from time to time establish.  No SAR or purported SAR shall be a valid and binding obligation of the Company
unless evidenced by a fully executed Award Agreement.  Award Agreements evidencing SARs may incorporate all or any of the terms
of the Plan by reference and shall comply with and be subject to the following terms and conditions:

                  7.1     Types
of SARs Authorized.  SARs may be granted in tandem with all or any portion of a related Option (a “Tandem
SAR”) or may be granted independently of any Option (a “Freestanding SAR”).  A Tandem SAR
may be granted either concurrently with the grant of the related Option or at any time thereafter prior to the complete exercise,
termination, expiration or cancellation of such related Option.

14

                 7.2     Exercise
Price.  The exercise price for each SAR shall be established in the discretion of the Committee; provided, however, that
(a) the exercise price per share subject to a Tandem SAR shall be the exercise price per share under the related Option and
(b) the exercise price per share subject to a Freestanding SAR shall be not less than the Fair Market Value of a share of Stock
on the effective date of grant of the SAR.

                  7.3     Exercisability
and Term of SARs.

                            
(a)     Tandem SARs.  Tandem SARs shall be exercisable only at the time and to the
extent, and only to the extent, that the related Option is exercisable, subject to such provisions as the Committee may specify where
the Tandem SAR is granted with respect to less than the full number of shares of Stock subject to the related Option.

                            
(b)     Freestanding SARs.  Freestanding SARs shall be exercisable at such time or times,
or upon such event or events, and subject to such terms, conditions, performance criteria and restrictions as shall be determined by
the Committee and set forth in the Award Agreement evidencing such SAR; provided, however, that no Freestanding SAR shall be
exercisable after the expiration of ten (10) years after the effective date of grant of such SAR.

                  7.4     Deemed
Exercise of SARs.  If, on the date on which an SAR would otherwise terminate or expire, the SAR by its terms remains
exercisable immediately prior to such termination or expiration and, if so exercised, would result in a payment to the holder of such
SAR, then any portion of such SAR which has not previously been exercised shall automatically be deemed to be exercised as of such
date with respect to such portion.

                  7.5     Effect
of Termination of Service.  Subject to earlier termination of the SAR as otherwise provided herein and unless otherwise
provided by the Committee in the grant of an SAR and set forth in the Award Agreement, an SAR shall be exercisable after a
Participant’s termination of Service only as provided in the Award Agreement.

                  7.6     Nontransferability
of SARs.  During the lifetime of the Participant, an SAR shall be exercisable only by the Participant or the
Participant’s guardian or legal representative.  Prior to the exercise of an SAR, the SAR shall not be subject in any
manner to anticipation, alienation, sale, exchange, transfer, assignment, pledge, encumbrance, or garnishment by creditors of the
Participant or the Participant’s beneficiary, except transfer by will or by the laws of descent and distribution.

          8.     TERMS AND
CONDITIONS OF RESTRICTED STOCK AWARDS.

                  Restricted Stock
Awards shall be evidenced by Award Agreements specifying the number of shares of Stock subject to the Award, in such form as the
Committee shall from time to time establish.  No Restricted Stock Award or purported Restricted Stock Award shall be a valid and
binding obligation of the Company unless evidenced by a fully executed Award Agreement.  Award Agreements evidencing Restricted
Stock Awards may incorporate all or any of the terms of the Plan by reference and shall comply with and be subject to the following
terms and conditions:

15

                  8.1     Types
of Restricted Stock Awards Authorized.  Restricted Stock Awards may or may not require the payment of cash compensation for
the stock.  Restricted Stock Awards may be granted upon such conditions as the Committee shall determine, including, without
limitation, upon the attainment of one or more Performance Goals described in Section 9.4.  If either the grant of a
Restricted Stock Award or the lapsing of the Restriction Period is to be contingent upon the attainment of one or more Performance
Goals, the Committee shall follow procedures substantially equivalent to those set forth in Sections 9.3 through 9.5(a).

                  8.2     Purchase
Price.  The purchase price, if any, for shares of Stock issuable under each Restricted Stock Award and the means of payment
shall be established by the Committee in its discretion.  

                  8.3     Purchase
Period.  A Restricted Stock Award requiring the payment of cash consideration shall be exercisable within a period
established by the Committee; provided, however, that no Restricted Stock Award granted to a prospective Employee, prospective
Consultant or prospective Director may become exercisable prior to the date on which such person commences Service.

                  8.4     Vesting
and Restrictions on Transfer.  Shares issued pursuant to any Restricted Stock Award may or may not be made subject to
Vesting Conditions based upon the satisfaction of such Service requirements, conditions, restrictions or performance criteria,
including, without limitation, Performance Goals as described in Section 9.4, as shall be established by the Committee and set
forth in the Award Agreement evidencing such Award.  During any Restriction Period in which shares acquired pursuant to a
Restricted Stock Award remain subject to Vesting Conditions, such shares may not be sold, exchanged, transferred, pledged, assigned
or otherwise disposed of other than as provided in the Award Agreement or as provided in Section 8.7.  Upon request by the
Company, each Participant shall execute any
agreement evidencing such transfer restrictions prior to the receipt of shares of Stock hereunder and shall promptly present to the
Company any and all certificates representing shares of Stock acquired hereunder for the placement on such certificates of
appropriate legends evidencing any such transfer restrictions.

                  8.5     Voting
Rights; Dividends and Distributions.  Except as provided in this Section, Section 8.4 and any Award Agreement, during the
Restriction Period applicable to shares subject to a Restricted Stock Award, the Participant shall have all of the rights of a
shareholder of the Company holding shares of Stock, including the right to vote such shares and to receive all dividends and other
distributions paid with respect to such shares.  However, in the event of a dividend or distribution paid in shares of Stock or
any other adjustment made upon a change in the capital structure of the Company as described in Section 4.2, any and all new,
substituted or additional securities or other property (other than normal cash dividends) to which the Participant is entitled by
reason of the Participant’s
Restricted Stock Award shall be immediately subject to the same Vesting Conditions as the shares subject to the Restricted Stock
Award with respect to which such dividends or distributions were paid or adjustments were made.

16

                  8.6     Effect
of Termination of Service.  Unless otherwise provided by the Committee in the grant of a Restricted Stock Award and set
forth in the Award Agreement, if a Participant’s Service terminates for any reason, whether voluntary or involuntary (including
the Participant’s death or disability), then the Participant shall forfeit to the Company any shares acquired by the Participant
pursuant to a Restricted Stock Award which remain subject to Vesting Conditions as of the date of the Participant’s termination
of Service in exchange for the payment of the purchase price, if any, paid by the Participant.  The Company shall have the right
to assign at any time any repurchase right it may have, whether or not such right is then exercisable, to one or more persons as may
be selected by the
Company.

                  8.7     Nontransferability
of Restricted Stock Award Rights.  Prior to the issuance of shares of Stock pursuant to a Restricted Stock Award, rights to
acquire such shares shall not be subject in any manner to anticipation, alienation, sale, exchange, transfer, assignment, pledge,
encumbrance or garnishment by creditors of the Participant or the Participant’s beneficiary, except transfer by will or the laws
of descent and distribution.  All rights with respect to a Restricted Stock Award granted to a Participant hereunder shall be
exercisable during his or her lifetime only by such Participant or the Participant’s guardian or legal representative.

          9.     TERMS AND
CONDITIONS OF PERFORMANCE AWARDS.

                  Performance Awards
shall be evidenced by Award Agreements in such form as the Committee shall from time to time establish.  No Performance Award or
purported Performance Award shall be a valid and binding obligation of the Company unless evidenced by a fully executed Award
Agreement.  Award Agreements evidencing Performance Awards may incorporate all or any of the terms of the Plan by reference and
shall comply with and be subject to the following terms and conditions:

                  9.1     Types
of Performance Awards Authorized.  Performance Awards may be in the form of either Performance Shares or Performance
Units.  Each Award Agreement evidencing a Performance Award shall specify the number of Performance Shares or Performance Units
subject thereto, the Performance Award Formula, the Performance Goal(s) and Performance Period applicable to the Award, and the other
terms, conditions and restrictions of the Award.

                  9.2     Initial
Value of Performance Shares and Performance Units.  Unless otherwise provided by the Committee in granting a Performance
Award, each Performance Share shall have an initial value equal to the Fair Market Value of one (1) share of Stock, subject to
adjustment as provided in Section 4.2, on the effective date of grant of the Performance Share.  Each Performance Unit shall
have an initial value determined by the Committee.  The final value payable to the Participant in settlement of a Performance
Award determined on the basis of the applicable Performance Award Formula will depend on the extent to which Performance Goals
established by the Committee are attained within the applicable Performance Period established by the Committee.

17

                  9.3     Establishment
of Performance Period, Performance Goals and Performance Award Formula.  In granting each Performance Award, the Committee
shall establish in writing the applicable Performance Period, Performance Award Formula and one or more Performance Goals which, when
measured at the end of the Performance Period, shall determine on the basis of the Performance Award Formula the final value of the
Performance Award to be paid to the Participant.  To the extent compliance with the requirements under Section 162(m) with
respect to “performance-based compensation” is desired, the Committee shall establish the Performance Goal(s) and
Performance Award Formula applicable to each Performance Award no later than the earlier of (a) the date ninety (90) days after the
commencement of the applicable
Performance Period or (b) the date on which 25% of the Performance Period has elapsed, and, in any event, at a time when the outcome
of the Performance Goals remains substantially uncertain.  Once established, the Performance Goals and Performance Award Formula
shall not be changed during the Performance Period.  The Company shall notify each Participant granted a Performance Award of
the terms of such Award, including the Performance Period, Performance Goal(s) and Performance Award Formula.

                  9.4     Measurement
of Performance Goals.  Performance Goals shall be established by the Committee on the basis of targets to be attained
(“Performance Targets”) with respect to one or more measures of business or financial performance (each, a
“Performance Measure”), subject to the following:

                            
(a)     Performance Measures.  Performance Measures shall have the same meanings as used
in the Company’s financial statements, or, if such terms are not used in the Company’s financial statements, they shall
have the meaning applied pursuant to generally accepted accounting principles, or as used generally in the Company’s
industry.  Performance Measures shall be calculated with respect to the Company and each Subsidiary Corporation consolidated
therewith for financial reporting purposes or such division or other business unit as may be selected by the Committee.  For
purposes of the Plan, the Performance Measures applicable to a Performance Award shall be calculated in accordance with generally
accepted accounting principles,
but prior to the accrual or payment of any Performance Award for the same Performance Period and excluding the effect (whether
positive or negative) of any change in accounting standards or any extraordinary, unusual or nonrecurring item, as determined by the
Committee, occurring after the establishment of the Performance Goals applicable to the Performance Award.  Each such
adjustment, if any, shall be made solely for the purpose of providing a consistent basis from period to period for the calculation of
Performance Measures in order to prevent the dilution or enlargement of the Participant’s rights with respect to a Performance
Award.  Performance Measures may be one or more of the following, as determined by the Committee:  revenue; sales;
expenses; operating income; gross margin; operating margin; earnings before any one or more of: stock-based compensation expense,
interest, taxes, depreciation and amortization; pre-tax profit; net operating income; net income; economic value
added; free cash flow; operating cash flow; stock price; earnings per share; return on shareholder equity; return on capital; return
on assets; return on investment; employee satisfaction; employee retention; balance of cash, cash equivalents and marketable
securities; market share; daily average revenue trades; asset gathering metrics; number of customers; customer satisfaction; product
development; completion of a joint venture or other corporate transaction; completion of identified special project; and overall
effectiveness of management; or such other measures as determined by the Committee consistent with this
Section 9.4(a).

18

                            
(b)     Performance Targets.  Performance Targets may include a minimum, maximum, target
level and intermediate levels of performance, with the final value of a Performance Award determined under the applicable Performance
Award Formula by the level attained during the applicable Performance Period.  A Performance Target may be stated as an absolute
value or as a value determined relative to a standard selected by the Committee.

                  9.5     Settlement
of Performance Awards.

                            
(a)     Determination of Final Value.  As soon as practicable following the completion of
the Performance Period applicable to a Performance Award, the Committee shall certify in writing the extent to which the applicable
Performance Goals have been attained and the resulting final value of the Award earned by the Participant and to be paid upon its
settlement in accordance with the applicable Performance Award Formula.

                            
(b)     Discretionary Adjustment of Award Formula.  In its discretion, the Committee may,
either at the time it grants a Performance Award or at any time thereafter, provide for the positive or negative adjustment of the
Performance Award Formula applicable to a Performance Award that is not intended to constitute “qualified performance based
compensation” to a “covered employee” within the meaning of Section 162(m) (a “Covered
Employee”) to reflect such Participant’s individual performance in his or her position with the Company or such
other factors as the Committee may determine.  With respect to a Performance Award intended to constitute qualified
performance-based compensation to a Covered
Employee, the Committee shall have the discretion to reduce some or all of the value of the Performance Award that would otherwise be
paid to the Covered Employee upon its settlement notwithstanding the attainment of any Performance Goal and the resulting value of
the Performance Award determined in accordance with the Performance Award Formula.  

                            
(c)     Payment in Settlement of Performance Awards.  As soon as practicable following
the Committee’s determination and certification in accordance with Sections 9.5(a) and (b), payment shall be made to each
eligible Participant (or such Participant’s legal representative or other person who acquired the right to receive such payment
by reason of the Participant’s death) of the final value of the Participant’s Performance Award.  Payment of such
amount shall be made in cash, shares of Stock, or a combination thereof as determined by the Committee.  

                  9.6     Voting
Rights; Dividend Equivalent Rights and Distributions.  Participants shall have no voting rights with respect to shares of
Stock represented by Performance Share Awards until the date of the issuance of such shares, if any (as evidenced by the appropriate
entry on the books of the Company or of a duly authorized transfer agent of the Company).  However, the Committee, in its
discretion, may provide in the Award Agreement evidencing any Performance Share Award that the Participant shall be entitled to
receive Dividend Equivalents with respect to the payment of cash dividends on Stock having a record date prior to the date on which
the Performance Shares are settled or forfeited.  Such Dividend Equivalents, if any, shall be credited to the Participant in the
form of additional whole Performance
Shares as of the date of payment of such cash dividends on Stock.  The number of additional Performance Shares (rounded to the
nearest whole number) to be so credited shall be determined by dividing (a) the amount of cash dividends paid on such date with
respect to the 

19

number of shares of Stock represented by the Performance Shares previously credited to the
Participant by (b) the Fair Market Value per share of Stock on such date.  Dividend Equivalents may be paid
currently or may be accumulated and paid to the extent that Performance Shares become nonforfeitable, as determined by the
Committee.  Settlement of Dividend Equivalents may be made in cash, shares of Stock, or a combination thereof as determined by
the Committee, and may be paid on the same basis as settlement of the related Performance Share as provided in Section 9.5. 
Dividend Equivalents shall not be paid with respect to Performance Units.  In the event of a dividend or distribution paid in
shares of Stock or any other adjustment made upon a change in the capital structure of the Company as described in Section 4.2,
appropriate adjustments shall be made in the Participant’s Performance Share Award so that it represents
the right to receive upon settlement any and all new, substituted or additional securities or other property (other than normal cash
dividends) to which the Participant would entitled by reason of the shares of Stock issuable upon settlement of the Performance Share
Award, and all such new, substituted or additional securities or other property shall be immediately subject to the same Performance
Goals as are applicable to the Award.

                  9.7     Effect
of Termination of Service.  Unless otherwise provided by the Committee in the grant of a Performance Award and set forth in
the Award Agreement, the effect of a Participant’s termination of Service on the Performance Award shall be as
follows:

                            
(a)     Death or Disability.  If the Participant’s Service terminates because of the
death or Disability of the Participant before the completion of the Performance Period applicable to the Performance Award, the final
value of the Participant’s Performance Award shall be determined by the extent to which the applicable Performance Goals have
been attained with respect to the entire Performance Period and shall be prorated based on the number of months of the
Participant’s Service during the Performance Period.  Payment shall be made following the end of the Performance Period in
any manner permitted by Section 9.5.

                            
(b)     Other Termination of Service.  If the Participant’s Service terminates for
any reason except death or Disability before the completion of the Performance Period applicable to the Performance Award, such Award
shall be forfeited in its entirety; provided, however, that in the event of an involuntary termination of the Participant’s
Service, the Committee, in its sole discretion, may waive the automatic forfeiture of all or any portion of any such Award.

                  9.8     Nontransferability
of Performance Awards.  Prior to settlement in accordance with the provisions of the Plan, no Performance Award shall be
subject in any manner to anticipation, alienation, sale, exchange, transfer, assignment, pledge, encumbrance, or garnishment by
creditors of the Participant or the Participant’s beneficiary, except transfer by will or by the laws of descent and
distribution.  All rights with respect to a Performance Award granted to a Participant hereunder shall be exercisable during his
or her lifetime only by such Participant or the Participant’s guardian or legal representative.

20

          10.   TERMS AND CONDITIONS OF RESTRICTED
STOCK UNIT
AWARDS.

                  Restricted Stock
Unit Awards shall be evidenced by Award Agreements specifying the number of Restricted Stock Units subject to the Award, in such form
as the Committee shall from time to time establish.  No Restricted Stock Unit Award or purported Restricted Stock Unit Award
shall be a valid and binding obligation of the Company unless evidenced by a fully executed Award Agreement.  Award Agreements
evidencing Restricted Stock Units may incorporate all or any of the terms of the Plan by reference and shall comply with and be
subject to the following terms and conditions:

                  10.1     Grant
of Restricted Stock Unit Awards. Restricted Stock Unit Awards may be granted upon such conditions as the Committee shall
determine, including, without limitation, upon the attainment of one or more Performance Goals described in Section 9.4.  If
either the grant of a Restricted Stock Unit Award or the Vesting Conditions with respect to such Award is to be contingent upon the
attainment of one or more Performance Goals, the Committee shall follow procedures substantially equivalent to those set forth in
Sections 9.3 through 9.5(a).

                  10.2     Vesting. 
Restricted Stock Units may or may not be made subject to Vesting Conditions based upon the satisfaction of such Service requirements,
conditions, restrictions or performance criteria, including, without limitation, Performance Goals as described in Section 9.4, as
shall be established by the Committee and set forth in the Award Agreement evidencing such Award.

                  10.3     Voting
Rights, Dividend Equivalent Rights and Distributions.  Participants
shall have no voting rights with respect to shares of Stock represented by
Restricted Stock Units until the date of the issuance of such shares (as
evidenced by the appropriate entry on the books of the Company or of a duly
authorized transfer agent of the Company).  However, the Committee, in its
discretion, may provide in the Award Agreement evidencing any Restricted Stock
Unit Award that the Participant shall be entitled to receive Dividend
Equivalents with respect to the payment of cash dividends on Stock having a
record date prior to the date on which Restricted Stock Units held by such
Participant are settled.  Such Dividend Equivalents, if any, shall be paid
by crediting the Participant with additional whole Restricted Stock Units as of
the date of payment of such cash dividends on Stock.  The number of
additional Restricted Stock Units (rounded to the nearest whole number) to be so
credited shall be determined by dividing (a) the amount of cash dividends paid
on such date with respect to the number of shares of Stock represented by the
Restricted Stock Units previously credited to the Participant by (b) the Fair
Market Value per share of Stock on such date.  Such additional Restricted
Stock Units shall be subject to the same terms and conditions and shall be
settled in the same manner and at the same time (or as soon thereafter as
practicable) as the Restricted Stock Units originally subject to the Restricted
Stock Unit Award.  In the event of a dividend or distribution paid in
shares of Stock or any other adjustment made upon a change in the capital
structure of the Company as described in Section 4.2, appropriate adjustments
shall be made in the Participant’s Restricted Stock Unit Award so that it
represents the right to receive upon settlement any and all new, substituted or
additional securities or other property (other than normal cash dividends) to
which the Participant would entitled by reason of the shares of Stock issuable
upon settlement of the Award, and all such new, substituted or additional
securities or other property shall be immediately subject to the same Vesting
Conditions as are applicable to the Award.

21

                  10.4     Effect
of Termination of Service.  Unless otherwise provided by the Committee in the grant of a Restricted Stock Unit Award and set
forth in the Award Agreement, if a Participant’s Service terminates for any reason, whether voluntary or involuntary (including
the Participant’s death or disability), then the Participant shall forfeit to the Company any Restricted Stock Units pursuant to
the Award which remain subject to Vesting Conditions as of the date of the Participant’s termination of Service.

                  10.5     Settlement
of Restricted Stock Unit Awards.  The Company shall issue to a Participant on the date on which Restricted Stock
Units subject to the Participant’s Restricted Stock Unit Award vest or on such other date determined by the Committee, in its
discretion, and set forth in the Award Agreement one (1) share of Stock (and/or any other new, substituted or additional securities
or other property pursuant to an adjustment described in Section 10.3) for each Restricted Stock Unit then becoming vested or
otherwise to be settled on such date, subject to the withholding of applicable taxes.  Notwithstanding the foregoing, if
permitted by the Committee and set forth in the Award Agreement, the Participant may elect in accordance with terms specified in the
Award Agreement to defer receipt of all or
any portion of the shares of Stock or other property otherwise issuable to the Participant pursuant to this Section.

                  10.6     Nontransferability
of Restricted Stock Unit Awards.  Prior to the issuance of shares of Stock in settlement of a Restricted Stock Unit Award,
the Award shall not be subject in any manner to anticipation, alienation, sale, exchange, transfer, assignment, pledge, encumbrance,
or garnishment by creditors of the Participant or the Participant’s beneficiary, except transfer by will or by the laws of
descent and distribution.  All rights with respect to a Restricted Stock Unit Award granted to a Participant hereunder shall be
exercisable during his or her lifetime only by such Participant or the Participant’s guardian or legal representative.

          11.   DEFERRED COMPENSATION AWARDS.

                  11.1     Establishment
of Deferred Compensation Award Programs.  This Section 11 shall not be effective unless and until the Committee
determines to establish a program pursuant to this Section.  The Committee, in its discretion and upon such terms and conditions
as it may determine, may establish one or more programs pursuant to the Plan under which:

                            
(a)     Participants designated by the Committee who are Insiders or otherwise among a select group of
highly compensated Employees may irrevocably elect, prior to a date specified by the Committee, to reduce such Participant’s
compensation otherwise payable in cash (subject to any minimum or maximum reductions imposed by the Committee) and to be granted
automatically at such time or times as specified by the Committee one or more Awards of Stock Units with respect to such numbers of
shares of Stock as determined in accordance with the rules of the program established by the Committee and having such other terms
and conditions as established by the Committee.

                            
(b)     Participants designated by the Committee who are Insiders or otherwise among a select group of
highly compensated Employees may irrevocably elect, prior to a date specified by the Committee, to be granted automatically an Award
of Stock Units with respect to such number of shares of Stock and upon such other terms and conditions as established by the
Committee in lieu of:

22

                                        
(i)     shares of Stock otherwise issuable to such Participant upon the exercise of an Option;

                                        
(ii)    cash or shares of Stock otherwise issuable to such Participant upon the exercise of an SAR; or

                                        
(iii)   cash or shares of Stock otherwise issuable to such Participant upon the settlement of a Performance Award or
Performance Unit.

                  11.2     Terms
and Conditions of Deferred Compensation Awards.  Deferred Compensation Awards granted pursuant to this Section 11 shall
be evidenced by Award Agreements in such form as the Committee shall from time to time establish.  No such Deferred Compensation
Award or purported Deferred Compensation Award shall be a valid and binding obligation of the Company unless evidenced by a fully
executed Award Agreement.  Award Agreements evidencing Deferred Compensation Awards may incorporate all or any of the terms of
the Plan by reference and shall comply with and be subject to the following terms and conditions:

                            
(a)     Vesting Conditions.  Deferred Compensation Awards shall not be subject to any
vesting conditions.

                            
(b)     Terms and Conditions of Stock Units.

                                        
(i)     Voting Rights; Dividend Equivalent Rights
and Distributions.  Participants shall have no voting rights with
respect to shares of Stock represented by Stock Units until the date of the
issuance of such shares (as evidenced by the appropriate entry on the books of
the Company or of a duly authorized transfer agent of the Company). 
However, a Participant shall be entitled to receive Dividend Equivalents with
respect to the payment of cash dividends on Stock having a record date prior to
date on which Stock Units held by such Participant are settled.  Such
Dividend Equivalents shall be paid by crediting the Participant with additional
whole and/or fractional Stock Units as of the date of payment of such cash
dividends on Stock.  The method of determining the number of additional
Stock Units to be so credited shall be specified by the Committee and set forth
in the Award Agreement.  Such additional Stock Units shall be subject to
the same terms and conditions and shall be settled in the same manner and at the
same time (or as soon thereafter as practicable) as the Stock Units originally
subject to the Stock Unit Award.  In the event of a dividend or
distribution paid in shares of Stock or any other adjustment made upon a change
in the capital structure of the Company as described in Section 4.2,
appropriate adjustments shall be made in the Participant’s Stock Unit Award
so that it represent the right to receive upon settlement any and all new,
substituted or additional securities or other property (other than normal cash
dividends) to which the Participant would be entitled by reason of the shares of
Stock issuable upon settlement of the Award.

                                        
(ii)    Settlement of Stock Unit Awards.  A Participant electing to receive an Award of Stock Units
pursuant to this Section 11, shall specify at the time of such election a settlement date with respect to such Award.  The
Company shall issue to the Participant as soon as practicable following the earlier of the settlement date elected by the 

23

Participant or the date of termination of the Participant’s Service, a number of whole
shares of Stock equal to the number of whole Stock Units subject to the Stock Unit Award.  Such shares of Stock shall be fully
vested, and the Participant shall not be required to pay any additional consideration (other than applicable tax withholding) to
acquire such shares.  Any fractional Stock Unit subject to the Stock Unit Award shall be settled by the Company by payment in
cash of an amount equal to the Fair Market Value as of the payment date of such fractional share.

                                        
(iii)   Nontransferability of Stock Unit Awards.  Prior to their settlement in accordance with the
provision of the Plan, no Stock Unit Award shall be subject in any manner to anticipation, alienation, sale, exchange, transfer,
assignment, pledge, encumbrance, or garnishment by creditors of the Participant or the Participant’s beneficiary, except
transfer by will or by the laws of descent and distribution.  All rights with respect to a Stock Unit Award granted to a
Participant hereunder shall be exercisable during his or her lifetime only by such Participant or the Participant’s guardian or
legal representative.

          12.   OTHER STOCK-BASED AWARDS.

          In addition to the Awards set forth
in Sections 6 through 11 above, the Committee, in its sole discretion, may carry out the purpose of this Plan by awarding Stock-Based
Awards as it determines to be in the best interests of the Company and subject to such other terms and conditions as it deems
necessary and appropriate.

          13.   CHANGE IN
CONTROL.

          Notwithstanding any other
provision of the Plan, any unexercisable or unvested portion of each outstanding Award held by a Nonemployee Director or an officer
and any shares acquired upon the exercise thereof shall be immediately exercisable and vested in full as of the date ten (10) days
prior to the date of a Change in Control but conditioned upon the consummation of the Change in Control.

                  13.1     Effect
of Change in Control on Options and SARs.  

                            
(a)     Accelerated Vesting.  Notwithstanding any other provision of the Plan to the
contrary except as provided in this Section 13, the Committee, in its sole discretion, may provide in any Award Agreement or, in the
event of a Change in Control, may take such actions as it deems appropriate to provide for the acceleration of the exercisability and
vesting in connection with such Change in Control of any or all outstanding Options and SARs and shares acquired upon the exercise of
such Options and SARs upon such conditions and to such extent as the Committee shall determine.  

                            
(b)     Assumption or Substitution.  In the event of a Change in Control, the surviving,
continuing, successor, or purchasing entity or parent thereof, as the case may be (the “Acquiror”), may, without the
consent of any Participant, either assume the Company’s rights and obligations under outstanding Options and SARs or substitute
for outstanding Options and SARs substantially equivalent options and SARs (as the case may be) for the Acquiror’s stock. 
Any Options or SARs which are not assumed by the Acquiror in connection with the Change in Control nor exercised as of the time of
consummation of the Change in Control shall terminate and cease to be outstanding effective as of the time of consummation of the
Change in
Control.

24

                            
(c)     Cash-Out of Options.  The Committee may, in its sole discretion and without the
consent of any Participant, determine that, upon the occurrence of a Change in Control, each or any Option or SAR outstanding
immediately prior to the Change in Control shall be canceled in exchange for a payment with respect to each vested share of Stock
subject to such canceled Option or SAR in (i) cash, (ii) stock of the Company or of a corporation or other business entity a party to
the Change in Control, or (iii) other property which, in any such case, shall be in an amount having a Fair Market Value equal to the
excess of the Fair Market Value of the consideration to be paid per share of Stock in the Change in Control over the exercise price
per share under such
Option or SAR (the “Spread”).  In the event such determination is made by the Committee, the Spread (reduced by
applicable withholding taxes, if any) shall be paid to Participants in respect of their canceled Options and SARs as soon as
practicable following the date of the Change in Control.

                  13.2     Effect
of Change in Control on Restricted Stock Awards.  The Committee may, in its discretion, provide in any Award Agreement
evidencing a Restricted Stock Award that, in the event of a Change in Control, the lapsing of the Restriction Period applicable to
the shares subject to the Restricted Stock Award held by a Participant whose Service has not terminated prior to the Change in
Control shall be accelerated effective immediately prior to the consummation of the Change in Control to such extent as specified in
such Award Agreement.  Any acceleration of the lapsing of the Restriction Period that was permissible solely by reason of this
Section 13.2 and the provisions of such Award Agreement shall be conditioned upon the consummation of the Change in
Control.

                  13.3     Effect
of Change in Control on Performance Awards.  The Committee may, in its discretion, provide in any Award Agreement evidencing
a Performance Award that, in the event of a Change in Control, the Performance Award held by a Participant whose Service has not
terminated prior to the Change in Control or whose Service terminated by reason of the Participant’s death or Disability shall
become payable effective as of the date of the Change in Control to such extent as specified in such Award Agreement.

                  13.4     Effect
of Change in Control on Restricted Stock Unit Awards.  The Committee may, in its discretion, provide in any Award Agreement
evidencing a Restricted Stock Unit Award that, in the event of a Change in Control, the Restricted Stock Unit Award held by a
Participant whose Service has not terminated prior to such date shall be settled effective as of the date of the Change in Control to
such extent as specified in such Award Agreement.

                  13.5     Effect
of Change in Control on Deferred Compensation and Other Stock-Based Awards.  The Committee may, in its discretion, provide
in any Award Agreement evidencing a Deferred Compensation Award or other Stock-Based Award that, in the event of a Change in Control,
the amounts payable pursuant to such Award shall be settled effective as of the date of the Change in Control to such extent as
specified in such Award Agreement.

25

          14.   COMPLIANCE WITH SECURITIES LAW.

                  The
grant of Awards and the issuance of shares of Stock pursuant to any Award shall
be subject to compliance with all applicable requirements of federal, state and
foreign law with respect to such securities and the requirements of any stock
exchange or market system upon which the Stock may then be listed.  In
addition, no Award may be exercised or shares issued pursuant to an Award unless
(a) a registration statement under the Securities Act shall at the time of
such exercise or issuance be in effect with respect to the shares issuable
pursuant to the Award or (b) in the opinion of legal counsel to the
Company, the shares issuable pursuant to the Award may be issued in accordance
with the terms of an applicable exemption from the registration requirements of
the Securities Act.  The inability of the Company to obtain from any
regulatory body having jurisdiction the authority, if any, deemed by the
Company’s legal counsel to be necessary to the lawful issuance and sale of
any shares hereunder shall relieve the Company of any liability in respect of
the failure to issue or sell such shares as to which such requisite authority
shall not have been obtained.  As a condition to issuance of any Stock, the
Company may require the Participant to satisfy any qualifications that may be
necessary or appropriate, to evidence compliance with any applicable law or
regulation and to make any representation or warranty with respect thereto as
may be requested by the Company.

          15.   TAX WITHHOLDING.

                  15.1     Tax
Withholding in General.  The Company shall have the right to deduct
from any and all payments made under the Plan, or to require the Participant,
through payroll withholding, cash payment or otherwise, including by means of a
Cashless Exercise or Net Exercise of an Option, to make adequate provision for,
the federal, state, local and foreign taxes, if any, required by law to be
withheld by the Participating Company Group with respect to an Award or the
shares acquired pursuant thereto.  The Company shall have no obligation to
deliver shares of Stock, to release shares of Stock from an escrow established
pursuant to an Award Agreement, or to make any payment in cash under the Plan
until the Participating Company Group’s tax withholding obligations have
been satisfied by the Participant.

                  15.2     Withholding
in Shares.  The Company shall have the right, but not the obligation,
to deduct from the shares of Stock issuable to a Participant upon the exercise
or settlement of an Award, or to accept from the Participant the tender of, a
number of whole shares of Stock having a Fair Market Value, as determined by the
Company, equal to all or any part of the tax withholding obligations of the
Participating Company Group.  The Fair Market Value of any shares of Stock
withheld or tendered to satisfy any such tax withholding obligations shall not
exceed the amount determined by the applicable minimum statutory withholding
rates.

          16.   AMENDMENT OR TERMINATION OF PLAN.

                  The Board or the
Committee may amend, suspend or terminate the Plan at any time.  However, without the approval of the Company’s
shareholders, there shall be (a) no increase in the maximum aggregate number of shares of Stock that may be issued under the
Plan (except by operation of the provisions of Section 4.2), (b) no change in the class of persons eligible to receive Incentive
Stock Options, and (c) no other amendment of the Plan that would require approval of the Company’s shareholders under any
applicable law, regulation or rule. 

26

No amendment, suspension or termination of the Plan shall affect any then outstanding Award
unless expressly provided by the Board or the Committee.  In any event, no amendment, suspension or termination of the Plan may
adversely affect any then outstanding Award without the consent of the Participant unless necessary to comply with any applicable
law, regulation or rule, including Section 409A of the Code.

          17.   MISCELLANEOUS PROVISIONS.

                  17.1     Repurchase
Rights.  Shares issued under the Plan may be subject to one or more repurchase options, or other conditions and
restrictions as determined by the Committee in its discretion at the time the Award is granted.  The Company shall have the
right to assign at any time any repurchase right it may have, whether or not such right is then exercisable, to one or more persons
as may be selected by the Company.  Upon request by the Company, each Participant shall execute any agreement evidencing such
transfer restrictions prior to the receipt of shares of Stock hereunder and shall promptly present to the Company any and all
certificates representing shares of Stock acquired hereunder for the placement on such certificates of appropriate legends evidencing
any such transfer
restrictions.

                  17.2     Provision
of Information.  Each Participant shall be given access to information concerning the Company equivalent to that information
generally made available to the Company’s common shareholders.

                  17.3     Rights
as Employee, Consultant or Director.  No person, even though eligible pursuant to Section 5, shall have a right to be
selected as a Participant, or, having been so selected, to be selected again as a Participant.  Nothing in the Plan or any Award
granted under the Plan shall confer on any Participant a right to remain an Employee, Consultant or Director or interfere with or
limit in any way any right of a Participating Company to terminate the Participant’s Service at any time.  To the extent
that an Employee of a Participating Company other than the Company receives an Award under the Plan, that Award shall in no event be
understood or interpreted to mean that the Company is the Employee’s employer or that the Employee has an employment
relationship with the Company.

                  17.4     Rights
as a Shareholder.  A Participant shall have no rights as a shareholder with respect to any shares covered by an Award until
the date of the issuance of such shares (as evidenced by the appropriate entry on the books of the Company or of a duly authorized
transfer agent of the Company).  No adjustment shall be made for dividends, distributions or other rights for which the record
date is prior to the date such shares are issued, except as provided in Section 4.2 or another provision of the Plan.

                  17.5     Fractional
Shares.  The Company shall not be required to issue fractional shares upon the exercise or settlement of any
Award.

                  17.6     Severability. 
If any one or more of the provisions (or any part thereof) of this Plan shall be held invalid, illegal or unenforceable in any
respect, such provision shall be modified so as to make it valid, legal and enforceable, and the validity, legality and
enforceability of the remaining provisions (or any part thereof) of the Plan shall not in any way be affected or impaired
thereby.

27

                  17.7     Beneficiary
Designation.  Subject to local laws and procedures, each Participant may file with the Company a written designation of a
beneficiary who is to receive any benefit under the Plan to which the Participant is entitled in the event of such Participant’s
death before he or she receives any or all of such benefit.  Each designation will revoke all prior designations by the same
Participant, shall be in a form prescribed by the Company, and will be effective only when filed by the Participant in writing with
the Company during the Participant’s lifetime.  If a married Participant designates a beneficiary other than the
Participant’s spouse, the effectiveness of such designation may be subject to the consent of the Participant’s
spouse.  If a Participant dies without an
effective designation of a beneficiary who is living at the time of the Participant’s death, the Company will pay any remaining
unpaid benefits to the Participant’s legal representative.

                  17.8     Unfunded
Obligation.  Participants shall have the status of general unsecured
creditors of the Company.  Any amounts payable to Participants pursuant to
the Plan shall be unfunded and unsecured obligations for all purposes,
including, without limitation, Title I of the Employee Retirement Income
Security Act of 1974.  No Participating Company shall be required to
segregate any monies from its general funds, or to create any trusts, or
establish any special accounts with respect to such obligations.  The
Company shall retain at all times beneficial ownership of any investments,
including trust investments, which the Company may make to fulfill its payment
obligations hereunder.  Any investments or the creation or maintenance of
any trust or any Participant account shall not create or constitute a trust or
fiduciary relationship between the Committee or any Participating Company and a
Participant, or otherwise create any vested or beneficial interest in any
Participant or the Participant’s creditors in any assets of any
Participating Company.  The Participants shall have no claim against any
Participating Company for any changes in the value of any assets which may be
invested or reinvested by the Company with respect to the Plan.  Each
Participating Company shall be responsible for making benefit payments pursuant
to the Plan on behalf of its Participants or for reimbursing the Company for the
cost of such payments, as determined by the Company in its sole
discretion.  In the event the respective Participating Company fails to
make such payment or reimbursement, a Participant’s (or other
individual’s) sole recourse shall be against the respective Participating
Company, and not against the Company.  A Participant’s acceptance of
an Award pursuant to the Plan shall constitute agreement with this
provision.

                  17.9     Choice
of Law.  Except to the extent governed by applicable federal law, the validity, interpretation, construction and performance
of the Plan and each Award Agreement shall be governed by the laws of the State of California, without regard to its conflict of law
rules.

28

ABAXIS, INC.

    RESTRICTED STOCK UNITS AGREEMENT

          Abaxis, Inc. has granted to the Participant named in the Notice of Grant of Restricted Stock Units (the “Notice”) to which this Restricted Stock Units Agreement (the “Agreement”) is attached an Award consisting of Restricted Stock Units subject to the terms and conditions set forth in the Notice and this Agreement.  The Award has been granted pursuant to the Abaxis, Inc. 2005 Equity Incentive Plan (the “Plan”), as amended to the Date of Grant, the provisions of which are incorporated herein by reference.  By signing the Notice, the Participant: (a) acknowledges receipt of and represents that the Participant has read and is familiar with the Notice, this Agreement, the Plan and a prospectus for the Plan in the form most recently registered with the Securities and Exchange Commission (the “Plan
Prospectus”), (b) accepts the Award subject to all of the terms and conditions of the Notice, this Agreement and the Plan and (c) agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions arising under the Notice, this Agreement or the Plan.

          1.       DEFINITIONS  AND CONSTRUCTION.

                    1.1     Definitions.  Unless otherwise defined herein, capitalized terms shall have the meanings assigned to such terms in the Notice or the Plan.

                              (a)     “Dividend Equivalent Units” mean additional Restricted Stock Units credited pursuant to Section 3.3.

                              (b)     “Units” mean the Restricted Stock Units originally granted pursuant to the Award and the Dividend Equivalent Units credited pursuant to the award, as both shall be adjusted from time to time pursuant to Section 9.

                    1.2     Construction.  Captions and titles contained herein are for convenience only and shall not affect the meaning or interpretation of any provision of this Agreement.  Except when otherwise indicated by the context, the singular shall include the plural and the plural shall include the singular.  Use of the term “or” is not intended to be exclusive, unless the context clearly requires otherwise.

          2.       ADMINISTRATION.

                    All questions of interpretation concerning the Notice and this Agreement shall be determined by the Committee.  All determinations by the Committee shall be final and binding upon all persons having an interest in the Award.  Any officer of the Company shall have the authority to act on behalf of the Company with respect to any matter, right, obligation, or election which is the responsibility of or which is allocated to the Company herein, provided the officer has apparent authority with respect to such matter, right, obligation, or election.

          3.      THE AWARD.

                    3.1     Grant of Restricted Stock Units.  On the Date of Grant, the Participant shall acquire, subject to the provisions of this Agreement, the Number of Restricted Stock Units set forth in the Notice, subject to adjustment as provided in Section 3.3 and Section 9.  Each Unit represents a right to receive on a date determined in accordance with the Notice and this Agreement one (1) Share.

                    3.2     No Monetary Payment Required.  The Participant is not required to make any monetary payment (other than applicable tax withholding, if any) as a condition to receiving the Units or Shares issued upon settlement of the Units, the consideration for which shall be past services actually rendered and/or future services to be rendered to the Company and/or its Affiliates or for their benefit.  Notwithstanding the foregoing, if required by applicable state corporate law, the Participant shall furnish consideration in the form of cash or past services rendered to or for the benefit of the Company and/or its Affiliates having a value not less than the par value of the Shares issued pursuant to the Award.

                    3.3     Dividend Equivalent Units.  On the date that the Company pays a cash dividend to holders of Shares generally, the Participant shall be credited with a number of additional whole Dividend Equivalents Units determined by dividing (a) the product of (i) the dollar amount of the cash dividend paid per Share on such date and (ii) the total number of Restricted Stock Units and Dividend Equivalent Units previously credited to the Participant pursuant to the Award and which have not been settled or forfeited pursuant to the Company Reacquisition Right (as defined below) as of such date, by (b) the Fair Market Value per Share on such date.  Any resulting fractional Dividend Equivalent Unit shall be rounded to the nearest whole number.  Such additional Dividend Equivalent Units shall be
subject to the same terms and conditions and shall be settled or forfeited in the same manner and at the same time as the Restricted Stock Units originally subject to the Award with respect to which they have been credited.

          4.       PERIOD OF RESTRICTION/VESTING OF UNITS.

                    The Units shall vest and become Vested Units as provided in the Notice.

          5.       COMPANY REACQUISITION RIGHT.

                    In the event that the Participant’s Service terminates for any reason or no reason, with or without cause, the Participant shall forfeit and the Company shall automatically reacquire all Units which are not, as of the time of such termination, Vested Units, and the Participant shall not be entitled to any payment therefor (the “Company Reacquisition Right”).

          6.       SETTLEMENT OF THE AWARD.

                    6.1     Issuance of Shares.  Subject to the provisions of Section 6.3 below, the Company shall issue to the Participant on the Settlement Date with respect to each Unit to be settled on such date, one (1) Share; provided however, that if such Settlement Date is a date on 

2

which a sale by the Participant of the Share to be issued in settlement of such Unit would violate the Insider Trading Policy of the Company, then the Settlement Date with respect to such Unit shall be the earlier of (a) the next day on which such sale would not violate the Insider Trading Policy or (b) the date that is two and one-half (21⁄2) months from the end of the calendar year in which such Unit became a Vested Unit.  For purposes of this Section, “Insider Trading Policy” means the written policy of the Company pertaining to the sale, transfer or other disposition of the Company’s equity securities by members of the Board, officers or other employees who may possess material, non-public information regarding the Company, as in effect at the time of a disposition of any Shares.  Shares issued in settlement of Units shall not be subject to any restriction on transfer other than any such restriction as may be
required pursuant to Section 6.3.

                    6.2     Beneficial Ownership of Shares; Certificate Registration.  The Participant hereby authorizes the Company, in its sole discretion, to deposit for the benefit of the Participant with any broker with which the Participant has an account relationship of which the Company has notice any or all Shares acquired by the Participant pursuant to the settlement of the Award.  Except as provided by the preceding sentence, a certificate for the Shares as to which the Award is settled shall be registered in the name of the Participant, or, if applicable, in the names of the heirs of the Participant.

                    6.3     Restrictions
on Grant of the Award and Issuance of Shares.  The grant of the
Award and issuance of Shares upon settlement of the Award shall be subject to
compliance with all applicable requirements of federal, state or foreign law
with respect to such securities.  No Shares may be issued hereunder if the
issuance of such Shares would constitute a violation of any applicable federal,
state or foreign securities laws or other law or regulations or the requirements
of any stock exchange or market system upon which the Shares may then be
listed.  The inability of the Company to obtain from any regulatory body
having jurisdiction the authority, if any, deemed by the Company’’s
legal counsel to be necessary to the lawful issuance of any Shares subject to
the Award shall relieve the Company of any liability in respect of the failure
to issue such Shares as to which such requisite authority shall not have been
obtained.  As a condition to the settlement of the Award, the Company may
require the Participant to satisfy any qualifications that may be necessary or
appropriate, to evidence compliance with any applicable law or regulation and to
make any representation or warranty with respect thereto as may be requested by
the Company.

                    6.4     Fractional Shares.  The Company shall not be required to issue fractional shares upon the settlement of the Award.

          7.       TAX WITHHOLDING.

                    7.1     In General.  At the time the Notice is executed, or at any time thereafter as requested by the Company and/or its Affiliates, the Participant hereby authorizes withholding from payroll and any other amounts payable to the Participant, and otherwise agrees to make adequate provision for, any sums required to satisfy the federal, state, local and foreign tax withholding obligations of the Company and/or its Affiliates, if any, which arise in connection with the Award or the issuance of Shares in settlement thereof.  The Company shall have no obligation to deliver Shares until the tax withholding obligations of the Company have been satisfied by the Participant.

3

                    7.2     Withholding in Shares.  The Company, it its discretion, shall have the right, but not the obligation, to permit or require the Participant to satisfy all or any portion of the Company’s and/or its Affiliates’ tax withholding obligations by withholding a number of whole Shares otherwise deliverable to the Participant in settlement of the Award having a fair market value, as determined by the Company as of the date on which the tax withholding obligations arise, not in excess of the amount of such tax withholding obligations determined by the applicable minimum statutory withholding rates.  Any adverse consequences to the Participant resulting from the procedure permitted under this Section, including, without limitation, tax consequences, shall be the sole responsibility of the
Participant.

          8.       EFFECT OF CHANGE IN CONTROL ON AWARD.

                    In the event of a Change in Control, the Award, with respect to those Units which are then Vested Units, shall be settled in accordance with Section 6 upon the consummation of the Change in Control.  Notwithstanding any other provision contained herein, any unvested portion of each outstanding Award held by a Nonemployee Director or an officer shall be vested in full as of the date ten (10) days prior to the date of a Change in Control and shall be settled upon the consummation of the Change in Control.  The provisions of this section are conditioned upon the consummation of the Change in Control.

          9.       ADJUSTMENTS IN AUTHORIZED SHARES.

                    In the event of any corporate event or transaction (including, but not limited to, a change in the Shares of the Company or the capitalization of the Company) such as a merger, consolidation, reorganization, recapitalization, separation, stock dividend, stock split, reverse stock split, split up, spin-off, or other distribution of stock or property of the Company, combination of Shares, exchange of Shares, dividend in kind, or other like change in capital structure or distribution (other than normal cash dividends) to stockholders of the Company, or any similar corporate event or transaction, the Committee, in its sole discretion, in order to prevent dilution or enlargement of Participants’ rights under this Award, shall make appropriate and proportionate adjustments in the number of Units subject to the Award and/or the number and kind of
Shares to be issued in settlement of the Award.  Any fractional share resulting from an adjustment pursuant to this Section 9 shall be rounded down to the nearest whole number.  Such adjustments shall be determined by the Committee, and its determination shall be final, binding and conclusive.

          10.      RIGHTS AS  A STOCKHOLDER, DIRECTOR, EMPLOYEE OR CONSULTANT.

                     The Participant shall have no rights as a stockholder with respect to any Shares which may be issued in settlement of this Award until the date of the issuance of the Shares (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company).  No adjustment shall be made for dividends, distributions or other rights for which the record date is prior to the date the Shares are issued, except as provided in Section 3.3 and Section 9.  If the Participant is an Employee, the Participant understands and

4

acknowledges that, except as otherwise provided in a separate, written employment agreement between the Company and/or its Affiliates and the Participant, the Participant’s employment is “at will” and is for no specified term.  Nothing in this Agreement shall confer upon the Participant any right to continue in the Service of the Company and/or its Affiliates or interfere in any way with any right of the Company and/or its Affiliates to terminate the Participant’s Service at any time.

          11.      LEGENDS.

                    The Company may at any time place legends referencing any applicable federal, state or foreign securities law restrictions on all certificates representing Shares issued pursuant to this Agreement.  The Participant shall, at the request of the Company, promptly present to the Company any and all certificates representing the Shares in the possession of the Participant in order to carry out the provisions of this Section.

          12.      MISCELLANEOUS PROVISIONS.

                     12.1     Amendment.  The Committee may amend this Agreement at any time; provided, however, that no such amendment may adversely affect the Participant’s rights under this Agreement without the consent of the Participant, except to the extent such amendment is necessary to comply with applicable law, including, but not limited to, Section 409A of the Code.  No amendment or addition to this Agreement shall be effective unless in writing.

                     12.2     Nontransferability of the Award.  Prior the issuance of Shares on the applicable Settlement Date, neither this Award nor any Units subject to this Award shall be subject in any manner to anticipation, alienation, sale, exchange, transfer, assignment, pledge, encumbrance, or garnishment by creditors of the Participant or the Participant’s beneficiary, except transfer by will or by the laws of descent and distribution.  All rights with respect to the Award shall be exercisable during the Participant’s lifetime only by the Participant or the Participant’s guardian or legal representative.

                     12.3     Further Instruments.  The parties hereto agree to execute such further instruments and to take such further action as may reasonably be necessary to carry out the intent of this Agreement.

                     12.4     Binding Effect.  This Agreement shall inure to the benefit of the successors and assigns of the Company and, subject to the restrictions on transfer set forth herein, be binding upon the Participant and the Participant’s heirs, executors, administrators, successors and assigns.

                     12.5     Delivery
of Documents and Notices.  Any document relating to participation in
the Plan or any notice required or permitted hereunder shall be given in writing
and shall be deemed effectively given (except to the extent that this Agreement
provides for effectiveness only upon actual receipt of such notice) upon
personal delivery, electronic delivery at the e-mail address, if any, provided
for the Participant by the Company and/or its Affiliates, or upon deposit in the
U.S. Post Office or foreign postal service, by registered or certified mail, or
with a nationally recognized overnight courier service, with postage and fees
prepaid, addressed to the other party at the address shown below that
party’s signature to the Notice or at such other address as such party may
designate in writing from time to time to the other party.

5

                                 (a)     Description of Electronic Delivery.  The Plan documents, which may include but do not necessarily include: the Plan, the Notice, this Agreement, the Plan Prospectus, and any reports of the Company provided generally to the Company’s stockholders, may be delivered to the Participant electronically.  Such means of electronic delivery may include but do not necessarily include the delivery of a link to a Company intranet or the internet site of a third party involved in administering the Plan, the delivery of the document via e-mail or such other means of electronic delivery specified by the Company.

                                  (b)     Consent to Electronic Delivery.  The Participant acknowledges that the Participant has read Section 12.5(a) of this Agreement and consents to the electronic delivery of the Plan documents as described in Section 12.5(a).  The Participant acknowledges that he or she may receive from the Company a paper copy of any documents delivered electronically at no cost to the Participant by contacting the Chief Financial Officer of the Company by telephone or in writing.  The Participant further acknowledges that the Participant will be provided with a paper copy of any documents if the attempted electronic delivery of such documents fails.  Similarly, the Participant understands that the Participant must
provide the Company or any designated third party administrator with a paper copy of any documents if the attempted electronic delivery of such documents fails.  The Participant may revoke his or her consent to the electronic delivery of documents described in Section 12.5(a) or may change the electronic mail address to which such documents are to be delivered (if Participant has provided an electronic mail address) at any time by notifying the Company of such revoked consent or revised e-mail address by telephone, postal service or electronic mail.  Finally, the Participant understands that he or she is not required to consent to electronic delivery of documents described in Section 12.5(a).

                     12.6     Integrated Agreement.  The Notice, this Agreement and the Plan, together with the Superseding Agreement, if any, shall constitute the entire understanding and agreement of the Participant and the Company and/or its Affiliates with respect to the subject matter contained herein or therein and supersedes any prior agreements, understandings, restrictions, representations, or warranties among the Participant and the Company and/or its Affiliates with respect to such subject matter other than those as set forth or provided for herein or therein.  To the extent contemplated herein or therein, the provisions of the Notice and the Agreement shall survive any settlement of the Award and shall remain in full force and effect.

                     12.7     Applicable Law.  This Agreement shall be governed by the laws of the State of California as such laws are applied to agreements between California residents entered into and to be performed entirely within the State of California.

                     12.8     Counterparts.  The Notice may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

6

ABAXIS, INC.
 NOTICE OF GRANT OF RESTRICTED STOCK UNITS

The Participant has been granted an award of Restricted Stock Units (the “Award”) pursuant to the Abaxis, Inc. 2005 Equity Incentive Plan (the “Plan”), each of which represents the right to receive on the applicable Settlement Date one (1) Share of Abaxis, Inc., as follows:

	
  
Participant:
  	
  
______________________
  
	
  
 
  	
  
 
  
	
  
Date of Grant:
  	
  
______________________
  
	
  
 
  	
  
 
  
	
  
Number of Restricted 
   Stock Units:
  	
  
______________________,   subject to adjustment as provided by the Restricted Stock Units Agreement.
  
	
  
 
  	
  
 
  
	
  
Settlement Date:
  	
  
For each Restricted Stock Unit and any Dividend   Equivalent Unit received, except as set forth below or as otherwise provided   by the Restricted Stock Units Agreement, the first business day in which the   Participant is permitted to trade the securities to be acquired upon   settlement of this Award pursuant to the Abaxis, Inc. Insider Trading Policy   that occurs on or after the date on which such unit becomes a Vested Unit in   accordance with the vesting schedule set forth below.  Notwithstanding the above, the Settlement   Date for Vested Units shall be no later than 2 1/2 months after the later of   (i) the end of the calendar year in which the Vesting Date occurs; or (ii)   the end of the Company’s tax year in which the Vesting Date occurs.
  
	
   
  	
  
 
  
	
  
Vested Units:
  	
  
Except as provided in the Restricted Stock Units   Agreement and provided that the Participant’s Service has not terminated   prior to the relevant vesting date, the number of Vested Units shall   cumulatively increase according to the time based vesting schedule set forth   below.  Vesting may be accelerated   until the Number of Restricted Stock Units granted hereunder and any Dividend   Equivalent Units received are 100% vested in accordance with the Performance   Based Accelerated Vesting Schedule set forth below; provided that the   Participant’s Service has not terminated prior to the relevant vesting   date.  At no point may more than the   Number of Restricted Stock Units set forth above plus any Dividend Equivalent   Units received become vested.
  

	
  
Time Based Vesting
Vesting Date
  	
  
No. Units Vesting
  
	
  
One year anniversary of Date of Grant
  	
  
__% of  Units
  
	
  
Two year anniversary of Date of Grant
  	
  
__% of Units
  
	
  Three year anniversary of Date of Grant
  	
  
__% of Units
  
	
  
Four year anniversary of Date of Grant
  	
  
__% of Units
  

	
  
Performance Based Accelerated Vesting
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
Performance Milestone
  	
  
Vesting % if Milestone Achieved
  	
  
Vesting Date
  	
  
Settlement Date
  
	
   
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
__% of Units
  	
  
 
  	
  
 
  
	
  
 
  	
  
__% of Units
  	
  
 
  	
  
 
  

By their signatures below, the Company and the Participant agree that the Award is governed by this Notice and by the provisions of the Plan and the Restricted Stock Units Agreement, both of which are attached to and made a part of this document.  The Participant acknowledges receipt of copies of the Plan, the Restricted Stock Units Agreement and the Plan Prospectus and represents that the Participant has read and is familiar with their provisions.  The Participant hereby accepts the Award subject to all of the terms and conditions of this Notice, the Restricted Stock Units Agreement and the Plan.

	
  ABAXIS, INC.
  	
  
 
  	
  
 
  	
  
PARTICIPANT
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
By:
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  

  	
  
 
  	
  

  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
Signature
  
	
  Its:
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  

  	
  
 
  	
  

  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
Date
  
	
  
Address:
  	
  
3240 Whipple Road
  	
  
 
  	
  

  
	
  
 
  	
  
 
  	
  
Union City, CA 94587
  	
  
 
  	
  
Address
  
	
   
  	
  
 
  	
  
 
  	
  
 
  	
  

  

	
  
ATTACHMENTS:
  	
  
2005 Equity Incentive Plan, as amended to the Date   of Grant; Restricted Stock Units Agreement and Plan Prospectus
  

2

ABAXIS, INC.
 NOTICE OF GRANT OF RESTRICTED STOCK UNITS

The Participant has been granted an award of Restricted Stock Units (the “Award”) pursuant to the Abaxis, Inc. 2005 Equity Incentive Plan (the “Plan”), each of which represents the right to receive on the applicable Settlement Date one (1) Share of Abaxis, Inc., as follows:

	
  
Participant:
  	
  
______________________
  
	
   
  	
  
 
  
	
  
Vesting Commencement Date:
  	
  
______________________
  
	
  
 
  	
  
 
  
	
  
Number of Restricted Stock Units:
  	
  
______________________,   subject to adjustment as provided by the Restricted Stock Units Agreement.
  
	
  
 
  	
  
 
  
	
  
Settlement Date:
  	
  
For each Restricted Stock Unit and any Dividend   Equivalent Unit received, except as otherwise provided by the Restricted   Stock Units Agreement, the first business day in which the Participant is   permitted to trade the securities to be acquired upon settlement of this   Award pursuant to the Abaxis, Inc. Insider Trading Policy that occurs on or   after the date on which such unit becomes a Vested Unit in accordance with   the vesting schedule set forth below.    Notwithstanding the above, the Settlement Date for Vested Units shall   be no later than 2 1/2 months after the later of (i) the end of the calendar   year in which the Vesting Date occurs; or (ii) the end of the Company’s tax   year in which the Vesting Date occurs.
  
	
  
 
  	
  
 
  	
  
 
  
	
  Vested Units:
  	
  
Except as provided in the Restricted Stock Units   Agreement and provided that the Participant’s Service has not terminated   prior to the relevant date, the number of Vested Units shall be determined as   follows:
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
            Vesting Date
  	
  
No. Units Vesting
  
	
  
 
  	
  
_____   anniversary of Date 
                   of Grant
  	
  
   ___% of Units
  

By their signatures below, the Company and the Participant agree that the Award is governed by this Notice and by the provisions of the Plan and the Restricted Stock Units Agreement, both of which are attached to and made a part of this document.  The Participant acknowledges receipt of copies of the Plan, the Restricted Stock Units Agreement and the Plan Prospectus and represents that the Participant has read and is familiar with their provisions.  The Participant hereby accepts the Award subject to all of the terms and conditions of this Notice, the Restricted Stock Units Agreement, and the Plan.

	
  ABAXIS, INC.
  	
  
 
  	
  
 
  	
  
PARTICIPANT
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
By:
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  

  	
  
 
  	
  

  
	
  
 
  	
  
 
  	
  
 
  	
  
Signature
  
	
  
Its:
  	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  

  	
  
 
  	
  

  
	
  
 
  	
  
 
  	
  
 
  	
  
Date
  
	
  
Address:
  	
  
3240 Whipple Road
  	
  
 
  	
  

  
	
  
 
  	
  
 
  	
  
Union City, CA 94587
  	
  
 
  	
  
Address
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  

  

	
  ATTACHMENTS:
  	
  2005 Equity Incentive Plan, as amended to the Date   of Grant; Restricted Stock Units Agreement and Plan Prospectus

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