Note 6.

Bank Debts and Lines of Credit

Our outstanding note payable indebtedness was as follows as of (in thousands):

	December 31,		December 31,
	2014		2013
Hannoversche Volksbank credit line #1	$	1,880	$	2,092
Hannoversche Volksbank credit line #2		465		444
Hannoversche Volksbank term loan #1		135		211
Hannoversche Volksbank term loan #2		81		138
Hannoversche Volksbank term loan #3		270		393
Ventana Medical Systems, Inc. Promissory Note		21		-
Related party advances		110		-
DZ Equity Partners Participation rights		912		1,032
	$	3,874	$	4,310

In July 2006, MEDITE GmbH, Burgdorf, entered into a master line of credit agreement #1 with Hannoversche Volksbank. The line of credit was amended in 2012 and was later amended to increase the credit limit to 1.8 million Euros. In January 2015, the master credit line was reduced to Euro 1.6 million and in March 2015 was to be reduced by a further Euro 500,000. The March 2015 reduction has been extended to May 31, 2015. The total credit line has a flexible use either as floating credit line with a variable interest rate of 8% per annum as of December 31, 2014, as “Eurocredit” fixed for one or more months with a short term fixed interest rate of 3.77% as of December 31, 2014 or as bank guarantee and for letters of credit in import business. The line of credit is collateralized by the accounts receivable and inventory of MEDITE GmbH, Burgdorf, a mortgage on the buildings owned by the Company and is guaranteed by Michaela Ott and Michael Ott, the former sole shareholders of the Company. At December 31, 2014 the Company had an unused and fully available credit line of Euro 150,000 with Hannoversche Volksbank.

In June 2012, CytoGlobe, GmbH, Burgdorf, entered into a line of credit agreement #2 with Hannoversche Volksbank. The line of credit granted a maximum borrowing authority of 400,000 Euros. The total credit line has a flexible use either as floating credit line with a variable interest rate of 8% per annum as of December 31, 2014, as “Eurocredit” fixed for one or more months with a short term fixed interest rate of 3.77% as of December 31, 2014 or as bank guarantee and for letters of credit in import business. The line of credit has no stated maturity date but may be cancelled by the bank upon notice to the Company. The line of credit is collateralized by the accounts receivable and inventory of CytoGlobe GmbH, Burgdorf and is guaranteed by Michaela Ott and Michael Ott, the former sole shareholders of the parent company and the state of Lower Saxony to support high-tech companies in the area.

In December 2006, MEDITE GmbH, Burgdorf, entered into a 500,000 Euro term loan agreement #1 with Hannoversche Volksbank with an interest rate of 3.4% per annum. The term loan has a maturity of September 2016 and requires semi-annual principal payments of approximately 27,780 euros each. The term loan is guaranteed by Michaela Ott and Michael Ott, the former sole stockholders of the Company and also a mortgage on the property of the Company.

In June 2006, MEDITE GmbH, Burgdorf, entered into a 400,000 Euro term loan #2 with Hannoversche Volksbank with an interest rate of 3.6 % per annum. The term loan has a maturity of June 2016, requires 18 semi-annual principal repayments of approximately 22,220 Euro each. The term loan is guaranteed by Michaela Ott and Michael Ott, the former sole stockholders of the Company and also has subordinated assignments of all of the receivables and inventories of MEDITE GmbH, Burgdorf and also has a subordinated pledge of stockholder term life insurance policies.

In November 2008, MEDITE GmbH, Burgdorf, entered into a 400,000 euro term loan #3 with Hannoversche Volksbank with a variable interest rate of approximately 4.7% per annum as of December 31, 2014. The term loan has a maturity of December 31, 2018, and requires quarterly principal repayments of 13,890 euro each. The term loan is guaranteed by the Ott’s and also includes a partial subordinated pledge of the receivables and inventory of MEDITE GmbH, Burgdorf.

In March 2009, the Company entered into a participation rights agreement in the form of a debenture which a mezzanine lender agreed to advance the Company up to 1.5 million euros in two tranches of 750,000 euros each. The first tranche was paid to the Company at closing with the second tranche being conditioned on MEDITE GmbH, Burgdorf and its subsidiaries hitting certain performance targets. Those targets were not met and the second tranche was never called. The debenture pays interest at the rate of 12.15% per annum and matures at December 31, 2016.

As of December 31, 2014 the remaining balance of approximately $21,000 on the note payable to Ventana Medical Systems, Inc. was in default, however, on February 23, 2015, The Company reached an agreement with Ventana Medical Systems, Inc. whereby both parties have agreed that Ventana Medical Systems, Inc. accept $38,281 as payment in full for all outstanding principal and accrued interest. As part of this agreement Ventana Medical Systems, Inc. has agreed to convert $1.75 million stated value of Series D Preferred stock and all outstanding accrued dividends of $656,250 for 12,000 shares of the company common stock. Prior to the execution of this agreement the company had failed to make principal and interest payments when due and is in breach of certain warranties and representations under the notes included above.

At the time of the merger, the Company owed its then CEO and Chairman of the Board for prior advances of approximately $121,700. During 2014, the Company had re-paid $10,000 and imputed $1,700 of non-cash charge interest expenses on these advances.

The following table summarizes the maturities of the Company’s outstanding long-term indebtedness, at December 31, 2014 over the following five years (in thousands):

Year
2015	$	189
2016		1,074
2017		68
2018		67
2019		-
Total	$	1,398