EssigPR, Inc. entered into a three-year term note as a lender, to SofTech, Inc., the borrower, in the amount of $750,000. The Note carries interest at 9.5% paid quarterly in arrears and is secured by the deferred payments of up to $1.02 million expected from Mentor Graphics Corporation related to their prior acquisition of the CADRA product line. If Mentor payments are insufficient for fully satisfying amounts due under the Note, SofTech shall satisfy the remaining balance on April 1, 2017.

Payments from Mentor in excess of amounts due under the Note shall revert to SofTech.