ERBA Diagnostics, Inc. entered into a promissory note in favor of Erba Diagnostics Mannheim GmbH, which provides for an unsecured loan of up to $500,000. Amounts outstanding under the Note will accrue interest at the rate of three and one-half 3.5% per annum and will become due and payable on January 31, 2019, subject to acceleration upon the occurrence of certain specified events of default. The initial loan of principal under the Note in the amount of $250,000 occurred on February 28, 2018. The subsequent loan of $250,000 under the Note will be made no later than December 31, 2018 at the time determined by the vote or written consent of the majority of the independent directors on the Company's board of directors. The funding of such subsequent loan will take place on the date that is fifteen 15 days after the date on which the independent directors have caused the Company to provide notice thereof to Erba Mannheim.