EMPLOYMENT AGREEMENT

                     EMPLOYMENT AGREEMENT


      Employment Agreement dated as of December 29, 2006 between
SCIENTIFIC INDUSTRIES, INC., a Delaware corporation 70 Orville Drive,
Bohemia, New York 11716 (the "Company") and ROBERT P. NICHOLS, an
individual residing at 16 Adams Street, Rocky Point, New York, 11778
("Employee").

WITNESSETH:

      WHEREAS, Employee has been employed as a senior executive
officer of the Company since May 2001 and the Company and Employee
desire the Employee continue to be employed as a senior executive
officer of the Company on the terms and conditions hereinafter
contained;

      NOW, THEREFORE, it is hereby agreed as follows:

1.     Employment.   The Company hereby employs and Employee agrees to be
employed as a senior executive officer of the Company for the Term as
defined in Section 2 to perform the duties described in Section 3 hereof.

2.     Term.   The employment of Employee by the Company shall continue
from January 1, 2007 through December 31, 2008, unless terminated earlier
pursuant to the provisions of Section 7 hereof.   The period from the date
hereof until the date of termination of employment pursuant to this
Agreement is herein referred to as the "Term".

3.     Duties.   Employee shall devote his full time to the affairs and
business of the Company for which he will serve in such senior executive
positions or offices as the Board of Directors (the "Board") shall
designate.   For the purposes of this Agreement, senior executive offices
means any one or more of the following: Chief Operating Officer,
Executive Vice President and Secretary, it being agreed that Employee
may hold more than one executive office, provided that his duties will
not require him to devote more time to the performance of his duties
on behalf of the Company than is reasonable.   As a senior executive
officer Employee shall report directly to the President or Chief
Executive Officer of the Company.   Employee shall use his best efforts
to promote the interests and welfare of the Company.   The duties
shall be principally performed at the principal executive offices of
the Company.

4.     Salary.   As his compensation hereunder, Employee shall be paid
by the Company a base salary determined by the Board of Directors but
not less than $115,000 per annum.   The base salary shall be payable
in equal weekly installments.   The Company may also pay to Employee
with respect to the period ending June 30, 2008 a bonus determined
by the Board in its sole discretion.   The Board in determining the
base salary for the 18 months ending June 30, 2008 and the amount
of a bonus, if any, for each of the foregoing periods shall consider
the achievement and surpassing of goals or projections set forth or
referred to in the operation plan for the relevant period approved
by the Board, including but not limited to, cash flow and earnings;
the Employee's performance of his executive responsibilities, and
such other criteria as the Board deems relevant.

5.     Expenses.  

a.     Subject to the authorization of the Board, Employee will be
authorized to incur reasonable and necessary expenses in connection
with the discharge of Employee's duties and in promoting the business
of the Company.   The Company will, according to its practices,
reimburse Employee for all such expenses upon presentation of a
properly itemized account of such expenditures, setting forth the
business reasons for such expenditures on a timely basis.

b.     Employee agrees to cooperate with the Company in the Company's
efforts to obtain and maintain a term insurance policy on the life of
Employee with the Company as sole beneficiary in such principal amount
as may be determined by the Board, currently anticipated to be $250,000.

6.     Other Benefits; Vacation.

a.     Employee shall be entitled to receive from the Company such
medical, hospital and disability benefits, life insurance, holiday
and sick pay consistent with those made available to the officers
of the Company and to participate in the Company's Plan under Section
401(k) of the Internal Revenue Code in accordance with its terms.

b.     Employee shall be entitled to an annual vacation during each 12
months of employment hereunder in accordance with the Company's
employee policy.

7.     Termination.

a.     In the event of Employee's death during the Term, this Agreement
shall terminate automatically as of the date of death, except with
respect to any accrued but unsatisfied obligations to the date of death.
In the event of Employee's disability (as hereinafter defined) for
sixty (60) consecutive calendar days or ninety (90) calendar days in the
aggregate during any twelve (12) consecutive month period within the
Term, the Company shall have the right, by written notice to Employee,
to terminate this Agreement as of the date of such notice, except with
respect to any accrued but unsatisfied obligation to the date of such
termination.   "Disability" for the purposes of this Agreement shall
mean Employee's physical or mental disability so as to render Employee
incapable of carrying out Employee's essential duties under this
Agreement.   In the event of a termination by the Company pursuant to
this Section 7(a), the Company shall not be under any further obligation
to Employee hereunder except to pay Employee:   (i) base salary and
benefits accrued and payable up to the date of such termination, and
(ii) reimbursement for expenses accrued and payable under Section 5
hereof through the date of termination.

b.     This Agreement may be terminated by either Employee or the
Company (other than as provided in Section 7(a)) upon thirty (30)
days' written notice if, during the Term, the other of them shall be
in breach of or in default under any provision of this Agreement.  
In the event of termination of this Agreement by reason of breach or
default by the Company, Employee shall have no obligation to mitigate
damages, and he shall be entitled to receive the base salary due him
at the rate in effect on the date written notice is delivered hereunder
for the then balance of the Term, not reduced by any compensation he
may receive elsewhere during such period.   In the event of termination
of the Agreement by reason of breach or default by Employee, the
Company shall not be under further obligation to Employee except to
pay Employee: (i) base salary and benefits accrued and payable up to
the date of such termination and (ii) reimbursement for expenses
accrued and payable under Section 5 thought the date of termination.

8.     Non-Competition; Non-Interference; Non-Solicitation.

a.     For the purpose of this Section 8 and of Sections 9, 10 and
11 "Company" includes each of its subsidiaries.

b.     From the date hereof through end of the Term, Employee will
not, without the express written approval