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<title>Pro-Dex Inc. Form 8-K</title>



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page-break-after:avoid'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

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page-break-after:avoid'><b><font style="font-size: 11.0pt">&nbsp;</font></b></p>

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<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

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page-break-after:avoid'><b><font style="font-size: 11.0pt">SECURITIES AND
EXCHANGE COMMISSION<br>
  Washington, D.C. 20549</font></b></p>

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page-break-after:avoid'><b><font style="font-size: 11.0pt">FORM 8-K</font></b></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-top:12.0pt;margin-right:0in;margin-bottom:0in;
margin-left:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid'><b><font style="font-size: 11.0pt">CURRENT REPORT</font></b></p>

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page-break-after:avoid'><b><font style="font-size: 11.0pt">PURSUANT TO SECTION
13 OR 15(d) OF<br>
THE SECURITIES EXCHANGE ACT OF 1934</font></b></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:
0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-bottom:.0001pt;text-align:left;text-indent:.5in; margin-left:0in; margin-right:0in; margin-top:0in'><font style="font-size: 11.0pt">Date of Report (Date of earliest event reported)<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
December 17, 2008
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</u></font></p>

<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman";margin-bottom:.0001pt;text-align:center;
page-break-after:avoid; margin-left:0in; margin-right:0in; margin-top:0in'><b><u>Pro-Dex, Inc.</u></b></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin:0in;margin-bottom:.0001pt;text-align:center;
page-break-after:avoid'><font style="font-size: 11.0pt">(Exact name of
registrant as specified in its charter)</font></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin:0in;margin-bottom:.0001pt;text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

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  <td width=258 valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in' nowrap>
  <p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin:0in;margin-bottom:.0001pt;text-align:center'><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Colorado&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></font></u></p>
  <p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin:0in;margin-bottom:.0001pt;text-align:center'><font style="font-size: 11.0pt">(State or other jurisdiction</font></p>
  <p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin:0in;margin-bottom:.0001pt;text-align:center'><font style="font-size: 11.0pt">of incorporation)</font></p>
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  <p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin:0in;margin-bottom:.0001pt;text-align:center'><b><u><font style="font-size: 11.0pt">0-14942</font></u></b></p>
  <p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin:0in;margin-bottom:.0001pt;text-align:center'><font style="font-size: 11.0pt">(Commission</font></p>
  <p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin:0in;margin-bottom:.0001pt;text-align:center'><font style="font-size: 11.0pt">File Number)</font></p>
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  <td valign=top style='padding:0in 5.4pt 0in 5.4pt' nowrap>
  <p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin:0in;margin-bottom:.0001pt;text-align:center'><b><u><font style="font-size: 11.0pt">84-1261240</font></u></b></p>
  <p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin:0in;margin-bottom:.0001pt;text-align:center'><font style="font-size: 11.0pt">(IRS Employer</font></p>
  <p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin:0in;margin-bottom:.0001pt;text-align:center'><font style="font-size: 11.0pt">Identification No.)</font></p>
  </td>
 </tr>
</table>

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<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-top:12.0pt;margin-right:0in;margin-bottom:0in;
margin-left:0in;margin-bottom:.0001pt;text-align:center'><b><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2361 McGaw Avenue Irvine, California, 92614&nbsp;&nbsp;&nbsp;</font></u></b><u><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<br>
</font></u><font style="font-size: 11.0pt">(Address of principal executive
offices)&nbsp; &nbsp;&nbsp; (Zip Code)</font></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:
0in;margin-bottom:.0001pt;text-align:justify'><font style="font-size: 11.0pt">Registrant&#8217;s
telephone number, including area code<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b>(949)769-3200&nbsp;&nbsp;&nbsp;</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</u></font></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin:0in;margin-bottom:.0001pt;text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin:0in;margin-bottom:.0001pt;text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-top:6.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;
margin-bottom:.0001pt;text-align:justify;text-indent:10.5pt'><font style="font-size: 11.0pt">Check the appropriate box below if the Form 8-K filing
is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions (see General Instruction A.2. below):</font></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin:0in;margin-bottom:.0001pt;text-align:justify;line-height:13.0pt'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font face="Wingdings">o</font><font style="font-size: 11.0pt">&nbsp;&nbsp; Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)</font></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin:0in;margin-bottom:.0001pt;text-align:justify;line-height:13.0pt'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin:0in;margin-bottom:.0001pt;text-align:justify;line-height:13.0pt'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font face="Wingdings">o</font><font style="font-size: 11.0pt">&nbsp;&nbsp; Soliciting material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a-12)</font></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin:0in;margin-bottom:.0001pt;text-align:justify;line-height:13.0pt'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin:0in;margin-bottom:.0001pt;text-align:justify;line-height:13.0pt'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font face="Wingdings">o</font><font style="font-size: 11.0pt">&nbsp;&nbsp; Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFR 240.14d-2(b))</font></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin:0in;margin-bottom:.0001pt;text-align:justify;line-height:13.0pt'><font style="font-size: 11.0pt">&nbsp;</font></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin:0in;margin-bottom:.0001pt;text-align:justify;line-height:13.0pt'><font style="font-size: 11.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font face="Wingdings">o</font><font style="font-size: 11.0pt">&nbsp;&nbsp; Pre-commencement communications pursuant to Rule 13e-4(c)
under the Exchange Act (17 CFR 240.13e-4(c))</font></p>
<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin:0in;margin-bottom:.0001pt;text-align:justify;line-height:13.0pt'>&nbsp;</p>
<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin:0in;margin-bottom:.0001pt;text-align:justify;line-height:13.0pt'>&nbsp;</p>
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&nbsp;</div>

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<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

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style='page-break-before:always'>


<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";line-height:1.0pt'>&nbsp;</p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:
0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin:0in;margin-bottom:.0001pt;text-align:justify'><b><font style="font-size: 10.0pt">Item 2.03.&nbsp;&nbsp; Creation of a Direct Financial
Obligation or an Obligation under an Off-Balance Sheet Arrangement of a
Registrant</font></b></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:38.5pt'><font style="font-size: 10.0pt">Pro-Dex,
Inc. (the &#8220;Company&#8221;) entered into a Credit Agreement (the
&#8220;Credit Agreement&#8221;) dated November 16, 2007, among the Company and Wells
Fargo Bank, N.A. (the &#8220;Bank&#8221;), providing for, (i) a Revolving Line
of Credit Note (the &#8220;Credit Line Note&#8221;) in the principal amount of
up to $4,000,000 and (ii) a Term Commitment (the &#8220;TI Commitment&#8221;)
in the principal amount of up to $2,000,000 and (iii) a Term Note (the
&#8220;Term Note&#8221;) in the principal amount of $562,500.07.&nbsp; The Credit
agreement, Credit Line Note, TI Commitment and Term Note are all collectively
referred to as the &#8220;Loan Documents.&#8221;&nbsp;&nbsp; </font></p>
<p style='margin-right:0in;margin-left:0in;font-size:10pt;font-family:"Times New Roman";text-align:justify;text-indent:38.5pt'>
The Company finalized documentation on December 17, 2008 when the final
signatures were received for the conversion of
the TI Commitment to a 5 year note and modified various other items in the Loan
Documents reflecting the conversion and updated lending terms.</p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:38.5pt'>
<font style="font-size: 10.0pt">The Company entered into the Term Note (&#8220;TI
Note&#8221;) contemplated in the Credit Agreements (the &#8220;TI Commitment&#8221;)
in the principal amount of $2,000,000 with a reference date of November 17,
2008.&nbsp; The TI Note will amortize over
five (5) years and shall be repaid in sixty (60) monthly installments, pursuant
to the terms of a Promissory Note executed by the Company.&nbsp; Interest rates
payable under the TI Note is determined to be 2.50% above one month LIBOR in
effect on the first day of each fixed rate term.&nbsp; &nbsp;The Company
subsequently entered into a contract with the Bank effectively fixing the rate
at 5.70%</font></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:38.5pt'>
<font size="2">T</font><font style="font-size: 10.0pt">he Company entered into the First Modification of the Credit
Line Note with a reference date of November 17, 2008&nbsp; where (i) The fixed rate of interest on the Credit Line Note was set
to 2.50% above LIBOR.&nbsp; It was previously at 1.75% over LIBOR.&nbsp; (ii) The
variable rate of interest on the Credit Line Note was set to 1.50% above Prime
Rate.&nbsp; It was previously at Prime Rate.&nbsp; (iii) the fixed Rate Term
was defined as a period of three (3) months.&nbsp; It was previously at the
Company&#8217;s choice of 1, 2, 3, 6 or 12 month LIBOR.</font></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";text-align:justify;text-indent:38.5pt'>
<font size="2">T</font><font style="font-size: 10.0pt">he Company (i) entered into the First Amendment to the
Credit Agreement with a reference date of November 17, 2008 replacing the TI Commitment with the TI Note.&nbsp; (ii) An
unused line fee was established in the amount of 0.25% per anum calculated
quarterly on the unused balance of the Credit Line Note. (iii) the earnings and
fixed charge coverage ratio covenants were adjusted to exclude the effects of a
potential write-off of certain intangible assets, if any.</font></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:
0in;margin-bottom:.0001pt;text-align:justify;text-indent:40.5pt'><font style="font-size: 10.0pt">Copies of the Term Note, First Modification to the
Promissory Note, and the First Amendment to Credit Agreement are attached
hereto as Exhibits 10.1, 10.2, and 10.3, respectively, and are incorporated
herein by reference. The foregoing descriptions of each of the Loan Documents
are qualified in their entirety by reference to the full text of the respective
agreements.</font></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:
1.0in;margin-bottom:.0001pt;text-indent:-1.0in'><b><font style="font-size: 10.0pt">Item
9.01.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial Statements and Exhibits.</font></b></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:
1.0in;margin-bottom:.0001pt;text-indent:-1.0in'><b><font style="font-size: 10.0pt">(d)
Exhibits:</font></b></p>

<p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin:0in;margin-bottom:.0001pt;page-break-after:avoid'><font style="font-size: 11.0pt">&nbsp;</font></p>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width="100%"
 style='width:100.0%;border-collapse:collapse' id="table1">
 <tr style='page-break-inside:avoid'>
  <td valign=top style='padding:.05in 5.75pt .05in 5.75pt'>
  <p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:
  0in;margin-bottom:.0001pt;text-align:justify'><u><font style="font-size: 10.0pt">Number</font></u></p>
  </td>
  <td valign=top style='padding:.05in 5.75pt .05in 5.75pt'>
  <p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:
  0in;margin-bottom:.0001pt;text-align:justify'><font style="font-size: 10.0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <u>Description</u></font></p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid'>
  <td valign=top style='padding:.05in 5.75pt .05in 5.75pt'>
  <p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin:0in;margin-bottom:.0001pt;text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
  <td valign=top style='padding:.05in 5.75pt .05in 5.75pt'>
  <p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin:0in;margin-bottom:.0001pt;text-align:justify'><font style="font-size: 11.0pt">&nbsp;</font></p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid'>
  <td valign=top style='padding:.05in 5.75pt .05in 5.75pt'>
  <p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin:0in;margin-bottom:.0001pt;text-align:justify'><font style="font-size: 10.0pt">10.1</font></p>
  </td>
  <td valign=top style='padding:.05in 5.75pt .05in 5.75pt'>
  <p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";'><font style="font-size: 10.0pt">Term Note, dated as of November 17, 2008,
  by Pro-Dex, Inc. in favor of Wells Fargo Bank, National Association.</font></p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid'>
  <td valign=top style='padding:.05in 5.75pt .05in 5.75pt'>
  <p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin:0in;margin-bottom:.0001pt;text-align:justify'><font style="font-size: 10.0pt">10.2</font></p>
  </td>
  <td valign=top style='padding:.05in 5.75pt .05in 5.75pt'>
  <p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";'><font style="font-size: 10.0pt">First Modification to Promissory Note,
  dated as of November 17, 2008, by Pro-Dex, Inc. in favor of Wells Fargo Bank,
  National Association.</font></p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid'>
  <td valign=top style='padding:.05in 5.75pt .05in 5.75pt'>
  <p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin:0in;margin-bottom:.0001pt;text-align:justify'><font style="font-size: 10.0pt">10.3</font></p>
  </td>
  <td valign=top style='padding:.05in 5.75pt .05in 5.75pt'>
  <p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";'><font style="font-size: 10.0pt">First Amendment to Credit Agreement, dated
  as of November 17, 2008, by Pro-Dex, Inc. in favor of Wells Fargo Bank,
  National Association.</font></p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid'>
  <td valign=top style='padding:.05in 5.75pt .05in 5.75pt'>
  <p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p>
  </td>
  <td valign=top style='padding:.05in 5.75pt .05in 5.75pt'>
  <p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
 </tr>
</table>

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Exchange Act of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.</font></p>

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  <p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:"Times New Roman";'><font style="font-size: 10.0pt">Date:&nbsp; January 13,
  2009</font></p>
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  <p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";'><font style="font-size: 10.0pt">Pro-Dex, Inc.</font></p>
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  <p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";'><font style="font-size: 10.0pt">By: <u>/s/ Jeffrey J. Ritchey </u></font></p>
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  <p style='margin-right:0in;margin-left:0in;font-size:12.0pt;font-family:"Times New Roman";'><font style="font-size: 10.0pt">Jeffrey J. Ritchey, Chief Financial
  Officer,&nbsp; <br>
  Secretary and Vice President</font></p>
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[{"type": "8-K", "sequence": "1", "filename": "espdex8k.htm", "secsgml_size_bytes": 27068}]
{"company-data": {"conformed-name": "PRO DEX INC", "cik": "0000788920", "assigned-sic": "3841", "irs-number": "841261240", "state-of-incorporation": "CO", "fiscal-year-end": "0608"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-14942", "film-number": "09524441"}, "business-address": {"street1": "2361 MCGAW AVENUE", "city": "IRVINE", "state": "CA", "zip": "92614", "phone": "949-769-3200"}, "mail-address": {"street1": "2361 MCGAW AVENUE", "city": "IRVINE", "state": "CA", "zip": "92614"}}
Pro-Dex Inc. Form 8-K
SECURITIES AND
EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION
13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported)
December 17, 2008
Pro-Dex, Inc.
(Exact name of
registrant as specified in its charter)
Colorado
(State or other jurisdiction
of incorporation)
0-14942
(Commission
File Number)
84-1261240
(IRS Employer
Identification No.)
2361 McGaw Avenue Irvine, California, 92614
(Address of principal executive
offices)     (Zip Code)
Registrant's
telephone number, including area code
(949)769-3200
Check the appropriate box below if the Form 8-K filing
is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions (see General Instruction A.2. below):
o
Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c)
under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.03.   Creation of a Direct Financial
Obligation or an Obligation under an Off-Balance Sheet Arrangement of a
Registrant
Pro-Dex,
Inc. (the "Company") entered into a Credit Agreement (the
"Credit Agreement") dated November 16, 2007, among the Company and Wells
Fargo Bank, N.A. (the "Bank"), providing for, (i) a Revolving Line
of Credit Note (the "Credit Line Note") in the principal amount of
up to $4,000,000 and (ii) a Term Commitment (the "TI Commitment")
in the principal amount of up to $2,000,000 and (iii) a Term Note (the
"Term Note") in the principal amount of $562,500.07.  The Credit
agreement, Credit Line Note, TI Commitment and Term Note are all collectively
referred to as the "Loan Documents."
The Company finalized documentation on December 17, 2008 when the final
signatures were received for the conversion of
the TI Commitment to a 5 year note and modified various other items in the Loan
Documents reflecting the conversion and updated lending terms.
The Company entered into the Term Note ("TI
Note") contemplated in the Credit Agreements (the "TI Commitment")
in the principal amount of $2,000,000 with a reference date of November 17,
2008.  The TI Note will amortize over
five (5) years and shall be repaid in sixty (60) monthly installments, pursuant
to the terms of a Promissory Note executed by the Company.  Interest rates
payable under the TI Note is determined to be 2.50% above one month LIBOR in
effect on the first day of each fixed rate term.   The Company
subsequently entered into a contract with the Bank effectively fixing the rate
at 5.70%
T
he Company entered into the First Modification of the Credit
Line Note with a reference date of November 17, 2008  where (i) The fixed rate of interest on the Credit Line Note was set
to 2.50% above LIBOR.  It was previously at 1.75% over LIBOR.  (ii) The
variable rate of interest on the Credit Line Note was set to 1.50% above Prime
Rate.  It was previously at Prime Rate.  (iii) the fixed Rate Term
was defined as a period of three (3) months.  It was previously at the
Company's choice of 1, 2, 3, 6 or 12 month LIBOR.
T
he Company (i) entered into the First Amendment to the
Credit Agreement with a reference date of November 17, 2008 replacing the TI Commitment with the TI Note.  (ii) An
unused line fee was established in the amount of 0.25% per anum calculated
quarterly on the unused balance of the Credit Line Note. (iii) the earnings and
fixed charge coverage ratio covenants were adjusted to exclude the effects of a
potential write-off of certain intangible assets, if any.
Copies of the Term Note, First Modification to the
Promissory Note, and the First Amendment to Credit Agreement are attached
hereto as Exhibits 10.1, 10.2, and 10.3, respectively, and are incorporated
herein by reference. The foregoing descriptions of each of the Loan Documents
are qualified in their entirety by reference to the full text of the respective
agreements.
Item
9.01.       Financial Statements and Exhibits.
(d)
Exhibits:
Number
Description
10.1
Term Note, dated as of November 17, 2008,
  by Pro-Dex, Inc. in favor of Wells Fargo Bank, National Association.
10.2
First Modification to Promissory Note,
  dated as of November 17, 2008, by Pro-Dex, Inc. in favor of Wells Fargo Bank,
  National Association.
10.3
First Amendment to Credit Agreement, dated
  as of November 17, 2008, by Pro-Dex, Inc. in favor of Wells Fargo Bank,
  National Association.
SIGNATURE
Pursuant to the requirements of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
Date:  January 13,
  2009
Pro-Dex, Inc.
By:
/s/ Jeffrey J. Ritchey
Jeffrey J. Ritchey, Chief Financial
  Officer,
Secretary and Vice President