Shopsmith Inc Watch

from 10-K 11 pages Commercial Time Note (Revolving) (Ohio Version) Amount City, State Date $600,000.00

from 10-Q 2 pages Second Amendment to Loan Agreement

from 10-Q 22 pages The Undersigned, for Value Received, Promises to Pay to the Order of the Provident Bank, at Any of Its Offices, the Sum of Two Million Thousand and 00/100 ($2,000,000.00), (The “Maximum Credit”) or So Much Thereof as Is Loaned by the Holder Pursuant to the Provisions Hereof, Together With Interest Until Demand or Maturity at the Rate of the Provident Bank Prime Rate as Declared From Time to Time Plus One-Quarter Percent (.25%) Per Year Computed on the Basis of a Year of 360 Days for the Actual Number of Days Elapsed, and After Default Hereunder, Demand, or Maturity, Whether at Stated Maturity or by Acceleration, at a Rate of Four (4) Percentage Points Greater Than the Stated Rate (The “Default Rate”). Interest Shall Be Due and Payable Monthly, Commencing August 1, 2004, in Arrears, and at Maturity. Principal Shall Be Due and Payable Monthly as Follows: 08/01/04 Through 07/01/05 $8,199.00 08/01/05 Through 07/01/06 $8,471.00 08/01/06 Through 07/01/07 $8,838.00 08/01/07 Through 07/01/08 $9,221.00 08/01/08 Through 06/01/09 $9,621.00 08/01/09 Balance Due in Full the Undersigned Hereby State(s) That the Purpose of the Loan Evidenced by This Note Is Business Purposes and Is Not an Individual Consumer Loan. This Note and All Other Existing Notes Are Secured by a Mortgage and Security Agreement Dated June 29th, 2004 and All Previous Security Agreements. [ ] Revolving Credit: If This Box Is Checked, This Note Is a Revolving Credit Subject to the Terms of This Paragraph

from 10-Q 10 pages First Amendment to Loan Agreement

from 10-Q ~5 pages Tenth Amendment to Loan and Security Agreement