SECURITY AGREEMENT
OWNER OF
COLLATERAL: Altamira Instruments, Inc.
149 Delta Drive, Ste. 200, Pittsburgh PA 15238-2805
______________________________________________________________________
DESCRIPTION OF COLLATERAL: The undersigned as guarantor
("Guarantor"),
to secure the debt of Scientific Industries, Inc. ("Borrower"),
hereby grants to Capital One, N.A. (the "Bank") a security
interest
(see Right to Repossess Section below for explanation of "security
interest")
in the following described collateral ("Collateral"): See
Attached Schedule"A"
OBLIGATIONS: The obligations that this agreement is to secure
are:
1. The amount of $500,000.00, which amount represents a loan made
on even date
herewith by the Bank to Borrower, as evidenced by a certain note
dated as of
even date herewith executed by Borrower promising, among other
things, to pay
the Bank, together with interest due and extensions and renewals
thereof,
plus all costs of collection in the event of default, including
attorney's
fees. 2. Any and all other liabilities of Borrower to the Bank
under this
agreement.
3. Any and all other liabilities of Borrower to the Bank, direct or
indirect,
absolute or contingent, present or future, due or to become due.
Borrower
agrees to promptly pay all obligations when due.
STATEMENT OF OWNER: Owner states and promises that:
1. The Collateral is bought or used primarily for: [ ]Personal, family of
household purposes; [
]Farming operations; [
X ]Business, and, if checked
here, [ ] is being
acquired with the proceeds of a loan signed at the same
time as this agreement and the Bank may pay those proceeds directly
to the
seller of the Collateral.
2. The Collateral is or is to be located at address shown above
(or at ____________________).
(Address if Collateral is to be kept elsewhere)
3. The Collateral will not be attached to real estate unless
indicated here:
_____________________________________
(Description of real estate by Street, Number,
_____________________________________
(Town or City, County & State)
_____________________________________
(Name and address of owner of real estate)
If the Collateral is to be attached to real estate and if the Bank
requests it,
Guarantor agrees to furnish the Bank with statements signed and
notarized by
everybody who has an interest in that real estate stating that they
claim no
interest in the Collateral. Guarantor gives the Bank permission to
file a
financing statement (notice of the Bank 's security interest filed
for public
record) covering the Bank's security interest without Guarantor's
signature on
it. Upon request of the Bank, Guarantor or Borrower will pay all
filing fees to
protect the Bank's security interest on the Collateral. The Bank
may charge
those fees to any account Guarantor or Borrower has with the
Bank.
INSURANCE REQUIREMENTS: Guarantor will keep the Collateral insured
against
fire, including so-called extended coverage, theft and if the
Collateral is a
motor vehicle, Guarantor will also maintain $500 deductible
collision insurance.
The limits and terms of the coverage and the insurance company must
be
satisfactory to the Bank. If the Bank requires additional insurance
on the
Collateral, Guarantor will obtain and maintain the additional
coverage. The
Bank shall be named as the loss payee (the person who gets the
money to pay for
damages) on all insurance policies. GUARANTOR SHALL HAVE THE RIGHT
TO CHOOSE THE
PERSON THROUGH WHOM SUCH INSURANCE IS TO BE OBTAINED. Guarantor
authorizes the
Bank to act in my behalf to make, adjust or settle any insurance
claim covering
the Collateral. Guarantor also authorizes the Bank to sign any
checks on my
behalf r
