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SCIENTIFIC INDUSTRIES INC FILES (8-K) Disclosing Entry into a Material Definitive Agreement

July 2, 2014



ITEM 1.01. ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT

On June 25, 2014, the Company and Bank of America, N.A. (the "Bank") entered into a Business Loan Agreement pursuant to which the Bank granted the Company a $700,000 line of credit for the period ending November 30, 2015. Advances are to bear interest at 3.00 percentage points over the LIBOR Index, currently 3.16% per annum and are to be secured by a pledge of Collateral consisting of all accounts, chattel paper, inventory, equipment and fixtures of the Company. Principal along with interest are payable at maturity.

Maturity of principal and interest accelerate upon the occurrence of an event of default. The events specified include failure to pay outstanding obligations under the loan, a material adverse change in the Company's financial condition or prospects and acts of insolvency. During the period of default the interest rate increase by 6% per annum.

The Company is required to reduce the outstanding principal balance to zero during the 30 day period ending on the anniversary date of the Note.

The facility replaces the Company's existing agreement relating to $700,000 with its former bank, Chase Bank, N.A.


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Source: Edgar Glimpses


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