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<div style='page:Section1;'>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:11.0pt;font-family:"Times New Roman";font-weight:bold;margin-top:0in'>SECURITIES AND EXCHANGE COMMISSION<br>
Washington, D.C. 20549</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:11.0pt;font-family:"Times New Roman";font-weight:bold;margin-top:0in'>FORM 8-K</p>

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

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:11.0pt;font-family:"Times New Roman";margin-top:0in'><b>PURSUANT TO SECTION 13 OR 15(d) OF<br>
THE SECURITIES EXCHANGE ACT OF 1934</b></p>

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

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-size:11.0pt;font-family:"Times New Roman";margin-top:0in'>Date of Report (Date of earliest event
reported)<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; November 16, 2007 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u></p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:11.0pt;font-family:"Times New Roman";font-weight:bold;margin-top:0in'><u>Pro-Dex, Inc.</u></p>

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

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

<div align="left">

<table class=MsoNormalTable border=0 cellpadding=0
 style='border-collapse:collapse' width="100%">
 <tr>
  <td width=326 valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:11.0pt;font-family:"Times New Roman";text-align:center'><u>&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></u></p>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:11.0pt;font-family:"Times New Roman";text-align:center'>(State or other
  jurisdiction</p>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:11.0pt;font-family:"Times New Roman";text-align:center'>of incorporation)</p>
  </td>
  <td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-size:11.0pt;font-family:"Times New Roman";font-weight:bold;text-decoration:underline;margin-top:0in;page-break-after:auto'>0-14942</p>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:11.0pt;font-family:"Times New Roman";text-align:center'>(Commission</p>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:11.0pt;font-family:"Times New Roman";text-align:center'>File Number)</p>
  </td>
  <td valign=top style='padding-left:5.4pt; padding-right:5.4pt; padding-top:0in; padding-bottom:0in'>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:11.0pt;font-family:"Times New Roman";text-align:center'><b><u>84-1261240</u></b></p>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:11.0pt;font-family:"Times New Roman";text-align:center'>(IRS Employer</p>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:11.0pt;font-family:"Times New Roman";text-align:center'>Identification No.)</p>
  </td>
 </tr>
</table>

</div>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;font-size:11.0pt;font-family:"Times New Roman";text-align:center'><b><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</u></b><b><u>151 E. Columbine Avenue, Santa Ana, California
92707&nbsp;&nbsp;&nbsp;</u></b><u>&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>
</u>(Address of principal executive offices)&nbsp; &nbsp;&nbsp; (Zip Code)</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;font-size:11.0pt;font-family:"Times New Roman";'>Registrant&#146;s telephone number, including area code<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>714-241-4411&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u></p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;font-size:11.0pt;font-family:"Times New Roman";text-align:center'><u>&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;&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;&nbsp; <b>Not
Applicable&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;&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;&nbsp; </b></u></p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;font-size:11.0pt;font-family:"Times New Roman";margin-top:0in;text-align:center'>(Former
name or former address, if changed since last report)</p>

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

<p style='margin-top:6.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:10.5pt;font-size:11.0pt;font-family:"Times New Roman";'>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):</p>

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

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

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

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

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

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

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

</div>

<hr color="#000080"><br clear=all
style='page-break-before:always'>


<div style='page:Section2;'>

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

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;font-family:"Times New Roman";margin-top:0in'><b>
<font size="2">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-family:"Times New Roman";text-align:justify;text-indent:38.5pt'>
<font size="2">On November 16, 2007, Pro-Dex, Inc. (the &#147;Company&#148;) entered in to
a Credit Agreement (the &#147;Credit Agreement&#148;) with Wells Fargo Bank, N.A. (the
&#147;Bank&#148;), whereby the Company may borrow from the Bank the aggregate principal
sum of up to $6,562,500.07, pursuant to the issuance of (i)&nbsp;a Revolving
Line of Credit Note (the &#147;Credit Line Note&#148;) in the principal amount of up to
$4,000,000, (ii)&nbsp;a Loan Commitment Note (the &#147;TI Note&#148;) in the principal
amount of up to $2,000,000, and (iii)&nbsp;a Term Note (the &#147;Term Note&#148;) in the
principal amount of $562,500.07.&nbsp; The Credit Agreement, Credit Line Note, TI
Note and Term Note are collectively referred to as the &#147;Loan Documents.&#148;</font></p>

<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman";text-align:justify;text-indent:38.5pt'>
<font size="2">The proceeds from the Credit Line Note and the TI Note are to be
used to fund the potential working capital and tenant improvement needs of the
Company.&nbsp; The Term Note represents the principal amount remaining from the
original $1,000,000 borrowed by the Company in January 2006 as funding for the
purchase of assets constituting its wholly-owned subsidiary, Astromec, Inc..
</font> </p>

<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman";text-align:justify;text-indent:.25in'>
<font size="2">The principal balance of the Credit Line Note, TI Note, and Term
Note bear interest, at the election of the Company, at either:</font></p>

<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman";margin-left:.25in;text-align:justify'>
<font size="2">(a)
at a fluctuating rate per annum equal to the Bank&#146;s Prime Rate as in effect
from time to time, </font> </p>

<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman";margin-left:.5in;text-align:justify'>
<font size="2">or</font></p>

<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman";text-align:justify;text-indent:.25in'>
<font size="2">(b) For the Credit Line Note only:&nbsp; at a fixed rate per annum determined by the bank to be 1.75%
above LIBOR in effect on the first day of the applicable fixed rate term. </font> </p>

<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman";text-align:justify;text-indent:.25in'>
<font size="2">(c) For the TI Note only:&nbsp; at
a fixed rate per annum determined by the bank to be 2.00% above LIBOR in effect
on the first day of the applicable fixed rate term. </font> </p>

<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman";text-align:justify;text-indent:.25in'>
<font size="2">(d) For the Term Note only:&nbsp; at
a fixed rate per annum determined by the bank to be 2.50% above LIBOR in effect
on the first day of the applicable fixed rate term. </font> </p>

<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>
<font size="2">The fixed rate term with respect to any of the credit facilities
evidenced by the Loan Documents may be for a period of either 1, 2, 3 or 6
months (or 12 months, solely with respect to the TI Note) as determined by the
Company pursuant to the terms of the Loan Documents.&nbsp;&nbsp; </font> </p>

<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>
<font size="2">The Company may borrow, repay and reborrow the indebtedness under
the Credit Line Note from time to time at its option any amounts up to the
$4,000,000 outstanding borrowings limit of the Credit Line Note.&nbsp; The principal
balance of the Credit Line is due and payable in full on November 1, 2009.&nbsp;
Accrued and outstanding interest under the Credit Line is payable on the 1st
day of each month, commencing December 1, 2007.&nbsp; The Credit Line may be prepaid
at any time without penalty, subject to prepayment of minimum amounts for any
amounts which bear interest in relation to LIBOR.&nbsp; </font> </p>

<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>
<font size="2">The Company can borrow and repay the indebtedness under the TI
Note from time to time at its option in amounts up to the $2,000,000
outstanding borrowings limit of the TI Note .&nbsp; Amounts repaid under the TI Note
may not be reborrowed.&nbsp; The principal balance of the TI Note is payable in full
on November 1, 2008.&nbsp; Accrued interest under the TI Note is payable on the 1st
day of each month, commencing December 1, 2007.&nbsp; The TI Note may be prepaid at
any time without penalty, subject to prepayment of minimum amounts for any
amounts which bear interest in relation to LIBOR. The outstanding principal
balance of the TI Note will be converted into a term loan on November 1, 2008,
which will amortize over five (5) years and shall be repaid in sixty (60)
monthly installments, pursuant to the terms of a promissory note to be executed
by the Company on said date. </font> </p>

<hr color="#000080"><br clear=all
style='page-break-before:always'>


<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>
<font size="2">The principal balance of the Term Note is payable on the 4<sup>th</sup>
day of each month in installments of $20,833.33 commencing on November 4, 2007
and continuing up to and including December 4, 2009, with a final payment
consisting of all remaining unpaid principal due and payable in full on January
4, 2010.&nbsp; Accrued interest under the Term Note is payable on the 4<sup>th</sup>
day of each month commencing November 4, 2007.&nbsp; The Term Note may be prepaid at
any time without penalty, subject to prepayment of minimum amounts for any
amounts which bear interest in relation to LIBOR.</font></p>

<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>
<font size="2">The indebtedness under the Loan Documents is secured by a first
priority security interest in all of the Company&#146;s accounts receivable and
other rights to payment, general intangibles, inventory and equipment.&nbsp; The
Credit Agreement contains customary representations, warranties and covenants
(affirmative and negative) including, among other things, the following
covenants:</font></p>

<table border="0" style="border-collapse: collapse" width="100%" id="table2" cellpadding="0">
	<tr>
		<td valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
		<td valign="top"><font size="2">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
		<td valign="top">

<p style='margin-right:0in;font-family:"Times New Roman";text-align:justify;'>
<font size="2">a
prohibition on entering into
any consolidation, merger, joint venture, syndication or other combination
affecting, involving or relating to the Company&#146;s business operations;</font></p>

		</td>
	</tr>
	<tr>
		<td valign="top">&nbsp;</td>
		<td valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
		<td valign="top">&nbsp; </td>
	</tr>
	<tr>
		<td valign="top">&nbsp;</td>
		<td valign="top">
<font size="2">(b)</font></td>
		<td valign="top">

<p style='margin-right:0in;font-family:"Times New Roman";text-align:justify;'>
<font size="2">maintain a current
ratio of not less than 1.5 to 1.0 as of the close of each fiscal quarter end;</font></p>

		</td>
	</tr>
	<tr>
		<td valign="top">&nbsp;</td>
		<td valign="top">&nbsp;</td>
		<td valign="top">&nbsp; </td>
	</tr>
	<tr>
		<td valign="top">&nbsp;</td>
		<td valign="top">
<font size="2">(c)</font></td>
		<td valign="top">

<p style='margin-right:0in;font-family:"Times New Roman";text-align:justify;'>
<font size="2">maintain a Total
Liabilities divided by Tangible Net Worth of not greater than 1.5:1.0 as of the
close of each fiscal quarter end.&nbsp; &#147;Total Liabilities&#148; is defined as the
aggregate of current liabilities and non-current liabilities less subordinated
debt.&nbsp; &#147;Tangible Net Worth&#148; is defined a the aggregate of total stockholder&#146;s
equity plus subordinated debt less any intangible assets;</font></p>

		</td>
	</tr>
	<tr>
		<td valign="top">&nbsp;</td>
		<td valign="top">&nbsp;</td>
		<td valign="top">&nbsp; </td>
	</tr>
	<tr>
		<td valign="top">&nbsp;</td>
		<td valign="top">
<font size="2">(d)</font></td>
		<td valign="top">

<p style='margin-right:0in;font-family:"Times New Roman";text-align:justify;'>
<font size="2">maintain a net income
after taxes of not less than $1.00 on an annual basis, determined as of the
close of each fiscal year end;</font></p>

		</td>
	</tr>
	<tr>
		<td valign="top">&nbsp;</td>
		<td valign="top">&nbsp;</td>
		<td valign="top">&nbsp; </td>
	</tr>
	<tr>
		<td valign="top">&nbsp;</td>
		<td valign="top">
<font size="2">(e)</font></td>
		<td valign="top">

<p style='margin-right:0in;font-family:"Times New Roman";text-align:justify;'>
<font size="2">maintain a net income
after taxes of not less than $1.00 on an quarterly basis, determined as of the
close of each fiscal quarter end, except that during any one quarter in fiscal
year 2008,&nbsp; the Company may have a net loss of not more than $300,000; and</font></p>

		</td>
	</tr>
	<tr>
		<td valign="top">&nbsp;</td>
		<td valign="top">&nbsp;</td>
		<td valign="top">&nbsp;</td>
	</tr>
	<tr>
		<td valign="top">&nbsp;</td>
		<td valign="top">
<font size="2">(f)</font></td>
		<td valign="top">

<p style='margin-right:0in;font-family:"Times New Roman";text-align:justify;'>
<font size="2">maintain a Fixed
Charge Coverage Ratio of not less than 1.25 to 1.0 as of the close of each
fiscal quarter end as determined on a rolling four quarter basis.&nbsp; &#147;Fixed
Charge Coverage Ratio&#148; is defined as the aggregate of net profit after taxes
plus depreciation and amortization divided by the aggregate of the current
maturity of long term debt and capitalized lease payments preceding the date of
calculation.&nbsp; </font> </p>

		</td>
	</tr>
</table>

<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman";text-align:justify;text-indent:.5in'>
<font size="2">The Credit Agreement contains customary events of default, which
include, among others, the following: </font> </p>

<blockquote>
	<ul>
		<li>
		<p style='margin-right:0in;font-family:"Times New Roman";text-align:justify;'>
		<font size="2">the failure of the
Company to make any required payment when due; </font></p></li>
		<li>
		<p style='margin-right:0in;font-family:"Times New Roman";text-align:justify;'>
		<font size="2">breach of its
representations or warranties or otherwise violate or breach the terms of the
Loan Documents or any other agreement with the Bank; </font></p></li>
		<li>
		<p style='margin-right:0in;font-family:"Times New Roman";text-align:justify;'>
		<font size="2">default of any
obligation under any agreement between the Company and any other person or
entity; </font></p></li>
		<li>
		<p style='margin-right:0in;font-family:"Times New Roman";text-align:justify;'>
		<font size="2">being subject to the
filing of notice of a judgment lien against the Company or the institution of a
bankruptcy or similar proceeding by or against the Company&#146;</font></p></li>
		<li>
		<p style='margin-right:0in;font-family:"Times New Roman";text-align:justify;'>
		<font size="2">suffering a material
adverse change, as determined by the bank, in its financial condition; or</font></p>
		</li>
		<li>
		<p style='margin-right:0in;font-family:"Times New Roman";text-align:justify;'>
		<font size="2">a change in ownership
in the aggregate of 25% or more of the common stock of the Company.</font></p>
		</li>
	</ul>
</blockquote>

<hr color="#000080"><br clear=all
style='page-break-before:always'>


<p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman";text-align:justify;text-indent:38.5pt'>
<font size="2">Among
other remedies offered to the Bank upon an event of default under the Loan
Documents, the Bank may, at its option, cause the entire balance of principal,
interest, fees and other charges under the Loan Documents or any other
agreement between the Company and the Bank to become immediately due and
payable.&nbsp; Pursuant to the terms of the Loan Documents, the above referenced
events of default, as well as all other provisions of the Credit Agreement,
shall apply to the Company&#146;s commercial credit accommodations from the Bank,
whether now existing or hereafter established.</font></p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-family:"Times New Roman";text-indent:40.5pt'>
<font size="2">Copies of the Credit Agreement, Credit
Line Note, TI Note and Term Note are attached hereto as Exhibits 10.1, 10.2,
10.3 and 10.4, 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-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-family:"Times New Roman";margin-left:1.0in;text-align:left;text-indent:
-1.0in'><b><font size="2">Item 9.01.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial Statements and Exhibits.</font></b></p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;text-indent:.5in;font-family:"Times New Roman";margin-left:1.0in;text-align:left;text-indent:
-1.0in'><b><font size="2">(d) Exhibits:</font></b></p>

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

<table class=MsoNormalTable border=0 cellpadding=0
 style='border-collapse:collapse' width="100%">

  <tr style='page-break-inside:avoid'>
   <td valign=top style='padding-left:5.75pt; padding-right:5.75pt; padding-top:.05in; padding-bottom:.05in'>
   <p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;font-family:"Times New Roman";margin-left:0in'><u>
	<font size="2">Number</font></u></p>
   </td>
   <td valign=top style='padding-left:5.75pt; padding-right:5.75pt; padding-top:.05in; padding-bottom:.05in'>
   <p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;font-family:"Times New Roman";margin-left:0in'>
	<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font> <u>
	<font size="2">Description</font></u></p>
   </td>
  </tr>

 <tr style='page-break-inside:avoid'>
  <td valign=top style='padding-left:5.75pt; padding-right:5.75pt; padding-top:.05in; padding-bottom:.05in'>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
  <td valign=top style='padding-left:5.75pt; padding-right:5.75pt; padding-top:.05in; padding-bottom:.05in'>
  <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;font-size:11.0pt;font-family:"Times New Roman";'>&nbsp;</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid'>
  <td valign=top style='padding-left:5.75pt; padding-right:5.75pt; padding-top:.05in; padding-bottom:.05in'>
  <p style='margin-bottom:.0001pt;text-align:justify;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">10.1</font></p>
  </td>
  <td valign=top style='padding-left:5.75pt; padding-right:5.75pt; padding-top:.05in; padding-bottom:.05in'>
  <p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman";'>
	<font size="2">Credit Agreement, dated as of
  November 1, 2007, between Pro-Dex, Inc. and Wells Fargo Bank, National
  Association.</font></p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid'>
  <td valign=top style='padding-left:5.75pt; padding-right:5.75pt; padding-top:.05in; padding-bottom:.05in'>
  <p style='margin-bottom:.0001pt;text-align:justify;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">10.2</font></p>
  </td>
  <td valign=top style='padding-left:5.75pt; padding-right:5.75pt; padding-top:.05in; padding-bottom:.05in'>
  <p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman";'>
	<font size="2">Revolving Line of Credit Note,
  dated as of November 1, 2007, 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-left:5.75pt; padding-right:5.75pt; padding-top:.05in; padding-bottom:.05in'>
  <p style='margin-bottom:.0001pt;text-align:justify;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">10.3</font></p>
  </td>
  <td valign=top style='padding-left:5.75pt; padding-right:5.75pt; padding-top:.05in; padding-bottom:.05in'>
  <p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman";'>
	<font size="2">Loan Commitment Note, dated as
  of November 1, 2007, 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-left:5.75pt; padding-right:5.75pt; padding-top:.05in; padding-bottom:.05in'>
  <p style='margin-bottom:.0001pt;text-align:justify;font-family:"Times New Roman"; margin-left:0in; margin-right:0in; margin-top:0in'>
	<font size="2">10.4</font></p>
  </td>
  <td valign=top style='padding-left:5.75pt; padding-right:5.75pt; padding-top:.05in; padding-bottom:.05in'>
  <p style='margin-right:0in;margin-left:0in;font-family:"Times New Roman";'>
	<font size="2">Term Note, dated as of
  November 1, 2007, by Pro-Dex, Inc. in favor of Wells Fargo Bank, National
  Association.</font></p>
  </td>
 </tr>
</table>

<p style='margin-top:6.0pt;margin-right:0in;margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;text-align:justify;text-indent:10.5pt;font-size:11.0pt;font-family:"Times New Roman";margin-left:0in;text-indent:0in'>&nbsp;</p>

<p style='margin-top:12.0pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;page-break-after:avoid;font-family:"Times New Roman";font-weight:bold'>
<font size="2">SIGNATURE</font></p>

<p style='margin-bottom:.0001pt;text-align:justify;text-indent:.5in;line-height:200%;font-family:"Times New Roman";text-align:left;line-height:normal; margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="2">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.</font></p>
<p style='margin-bottom:.0001pt;text-align:justify;text-indent:.5in;line-height:200%;font-family:"Times New Roman";text-align:left;line-height:normal; margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="2">&nbsp;&nbsp; </font></p>

<div align="left">
	<table border="0" style="border-collapse: collapse" width="100%" id="table1">
		<tr>
			<td><font size="2">Date:&nbsp; November 20, 2007</font></td>
			<td width="485">

<p style='text-align:justify;font-family:"Times New Roman";text-align:left;
'><font size="2">Pro-Dex, Inc.</font></p></td>
		</tr>
		<tr>
			<td>&nbsp;</td>
			<td width="485">&nbsp;&nbsp;&nbsp; </td>
		</tr>
		<tr>
			<td>&nbsp;</td>
			<td width="485">

<p style='text-align:justify;font-family:"Times New Roman";text-align:left;
'><font size="2">By:
</font>
<u><font size="2">/s/ Jeffrey J. Ritchey </font> </u></p>

			</td>
		</tr>
		<tr>
			<td>&nbsp;</td>
			<td width="485">

<p style='text-align:justify;font-family:"Times New Roman";text-align:left;
'><font size="2">Jeffrey
J. Ritchey, Chief Financial Officer,&nbsp; <br>
Secretary and Vice President</font></p>

			</td>
		</tr>
	</table>
</div>

</div>

</body>

</html>
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Prepared by E-Services - www.edgar2.com
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)
November 16, 2007
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.)
151 E. Columbine Avenue, Santa Ana, California
92707
(Address of principal executive offices)     (Zip Code)
Registrant's telephone number, including area code
714-241-4411
Not
Applicable
(Former
name or former address, if changed since last report)
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
On November 16, 2007, Pro-Dex, Inc. (the "Company") entered in to
a Credit Agreement (the "Credit Agreement") with Wells Fargo Bank, N.A. (the
"Bank"), whereby the Company may borrow from the Bank the aggregate principal
sum of up to $6,562,500.07, pursuant to the issuance of (i) a Revolving
Line of Credit Note (the "Credit Line Note") in the principal amount of up to
$4,000,000, (ii) a Loan Commitment Note (the "TI Note") 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
Note and Term Note are collectively referred to as the "Loan Documents."
The proceeds from the Credit Line Note and the TI Note are to be
used to fund the potential working capital and tenant improvement needs of the
Company.  The Term Note represents the principal amount remaining from the
original $1,000,000 borrowed by the Company in January 2006 as funding for the
purchase of assets constituting its wholly-owned subsidiary, Astromec, Inc..
The principal balance of the Credit Line Note, TI Note, and Term
Note bear interest, at the election of the Company, at either:
(a)
at a fluctuating rate per annum equal to the Bank's Prime Rate as in effect
from time to time,
or
(b) For the Credit Line Note only:  at a fixed rate per annum determined by the bank to be 1.75%
above LIBOR in effect on the first day of the applicable fixed rate term.
(c) For the TI Note only:  at
a fixed rate per annum determined by the bank to be 2.00% above LIBOR in effect
on the first day of the applicable fixed rate term.
(d) For the Term Note only:  at
a fixed rate per annum determined by the bank to be 2.50% above LIBOR in effect
on the first day of the applicable fixed rate term.
The fixed rate term with respect to any of the credit facilities
evidenced by the Loan Documents may be for a period of either 1, 2, 3 or 6
months (or 12 months, solely with respect to the TI Note) as determined by the
Company pursuant to the terms of the Loan Documents.
The Company may borrow, repay and reborrow the indebtedness under
the Credit Line Note from time to time at its option any amounts up to the
$4,000,000 outstanding borrowings limit of the Credit Line Note.  The principal
balance of the Credit Line is due and payable in full on November 1, 2009. 
Accrued and outstanding interest under the Credit Line is payable on the 1st
day of each month, commencing December 1, 2007.  The Credit Line may be prepaid
at any time without penalty, subject to prepayment of minimum amounts for any
amounts which bear interest in relation to LIBOR.
The Company can borrow and repay the indebtedness under the TI
Note from time to time at its option in amounts up to the $2,000,000
outstanding borrowings limit of the TI Note .  Amounts repaid under the TI Note
may not be reborrowed.  The principal balance of the TI Note is payable in full
on November 1, 2008.  Accrued interest under the TI Note is payable on the 1st
day of each month, commencing December 1, 2007.  The TI Note may be prepaid at
any time without penalty, subject to prepayment of minimum amounts for any
amounts which bear interest in relation to LIBOR. The outstanding principal
balance of the TI Note will be converted into a term loan on November 1, 2008,
which will amortize over five (5) years and shall be repaid in sixty (60)
monthly installments, pursuant to the terms of a promissory note to be executed
by the Company on said date.
The principal balance of the Term Note is payable on the 4
th
day of each month in installments of $20,833.33 commencing on November 4, 2007
and continuing up to and including December 4, 2009, with a final payment
consisting of all remaining unpaid principal due and payable in full on January
4, 2010.  Accrued interest under the Term Note is payable on the 4
th
day of each month commencing November 4, 2007.  The Term Note may be prepaid at
any time without penalty, subject to prepayment of minimum amounts for any
amounts which bear interest in relation to LIBOR.
The indebtedness under the Loan Documents is secured by a first
priority security interest in all of the Company's accounts receivable and
other rights to payment, general intangibles, inventory and equipment.  The
Credit Agreement contains customary representations, warranties and covenants
(affirmative and negative) including, among other things, the following
covenants:
(a)
a
prohibition on entering into
any consolidation, merger, joint venture, syndication or other combination
affecting, involving or relating to the Company's business operations;
(b)
maintain a current
ratio of not less than 1.5 to 1.0 as of the close of each fiscal quarter end;
(c)
maintain a Total
Liabilities divided by Tangible Net Worth of not greater than 1.5:1.0 as of the
close of each fiscal quarter end.  "Total Liabilities" is defined as the
aggregate of current liabilities and non-current liabilities less subordinated
debt.  "Tangible Net Worth" is defined a the aggregate of total stockholder's
equity plus subordinated debt less any intangible assets;
(d)
maintain a net income
after taxes of not less than $1.00 on an annual basis, determined as of the
close of each fiscal year end;
(e)
maintain a net income
after taxes of not less than $1.00 on an quarterly basis, determined as of the
close of each fiscal quarter end, except that during any one quarter in fiscal
year 2008,  the Company may have a net loss of not more than $300,000; and
(f)
maintain a Fixed
Charge Coverage Ratio of not less than 1.25 to 1.0 as of the close of each
fiscal quarter end as determined on a rolling four quarter basis.  "Fixed
Charge Coverage Ratio" is defined as the aggregate of net profit after taxes
plus depreciation and amortization divided by the aggregate of the current
maturity of long term debt and capitalized lease payments preceding the date of
calculation.
The Credit Agreement contains customary events of default, which
include, among others, the following:
the failure of the
Company to make any required payment when due;
breach of its
representations or warranties or otherwise violate or breach the terms of the
Loan Documents or any other agreement with the Bank;
default of any
obligation under any agreement between the Company and any other person or
entity;
being subject to the
filing of notice of a judgment lien against the Company or the institution of a
bankruptcy or similar proceeding by or against the Company'
suffering a material
adverse change, as determined by the bank, in its financial condition; or
a change in ownership
in the aggregate of 25% or more of the common stock of the Company.
Among
other remedies offered to the Bank upon an event of default under the Loan
Documents, the Bank may, at its option, cause the entire balance of principal,
interest, fees and other charges under the Loan Documents or any other
agreement between the Company and the Bank to become immediately due and
payable.  Pursuant to the terms of the Loan Documents, the above referenced
events of default, as well as all other provisions of the Credit Agreement,
shall apply to the Company's commercial credit accommodations from the Bank,
whether now existing or hereafter established.
Copies of the Credit Agreement, Credit
Line Note, TI Note and Term Note are attached hereto as Exhibits 10.1, 10.2,
10.3 and 10.4, 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
Credit Agreement, dated as of
  November 1, 2007, between Pro-Dex, Inc. and Wells Fargo Bank, National
  Association.
10.2
Revolving Line of Credit Note,
  dated as of November 1, 2007, by Pro-Dex, Inc. in favor of Wells Fargo Bank,
  National Association.
10.3
Loan Commitment Note, dated as
  of November 1, 2007, by Pro-Dex, Inc. in favor of Wells Fargo Bank, National
  Association.
10.4
Term Note, dated as of
  November 1, 2007, 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:  November 20, 2007
Pro-Dex, Inc.
By:
/s/ Jeffrey J. Ritchey
Jeffrey
J. Ritchey, Chief Financial Officer,
Secretary and Vice President