SEC FORM 4

SEC Form 4

FORM 4

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

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Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

1. Name and Address of Reporting Person^*

Shunk Laura F

(Last)

(First)

(Middle)

8300 MULBERRY ROAD, P.O. BOX 490

(Street)

CHESTERLAND

44026

(City)

(State)

(Zip)

2. Issuer Name and Ticker or Trading Symbol
SCI Engineered Materials, Inc. [ SCCI.OB ]

5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

Director	X	10% Owner
Officer (give title below)		Other (specify below)

3. Date of Earliest Transaction (Month/Day/Year)
06/10/2008

4. If Amendment, Date of Original Filed (Month/Day/Year)

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	Code	V	Amount	(A) or (D)	Price		6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
Common Stock, without par value	06/10/2008		M		4,449	A	$1	323,916	D
Common Stock, without par value	06/10/2008		M		7,460	A	$1	331,376	D
Common Stock, without par value								250	I	By IRA

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares	8. Price of Derivative Security (Instr. 5)		10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
Stock Purchase Warrant - Right to Buy	$1	06/10/2008		M			4,449	⁽¹⁾	06/30/2008	Common Stock, without par value	4,449	$0	0	D
Stock Purchase Warrant - Right to Buy	$1	06/10/2008		M			7,460	⁽²⁾	06/30/2008	Common Stock, without par value	7,460	$0	0	D

Explanation of Responses:

1. A warrant to purchase up to 33,889 shares of common stock issued on June 30, 2003 in connection with a cash investment in the Company in exchange for a convertible promissory note. Of these warrants, 13,889 vested immediately and became exercisable, and the other 20,000 warrants vested and became exercisable during the time the convertible promissory note remained outstanding at the rate of 556 warrants per month for up to 32 months and at the rate of 552 warrants for an additional four months. The convertible promissory note was converted to equity on May 13, 2004, at which time an additional 5,560 warrants had vested based on the note being outstanding for 10 months, for a total of 19,449 vested warrants.

2. A warrant to purchase up to 13,151 shares of common stock issued on June 30, 2003 in connection with the redemption of preferred shares in exchange for a convertible promissory note investment in the Company. Of these warrants, 5,260 vested immediately and became exercisable, and the other 7,891 warrants vested and became exercisable during the time the convertible promissory note remained outstanding at the rate of 220 warrants per month for up to 35 months and 191 warrants for an additional one month. The convertible promissory note was converted to equity on May 13, 2004, at which time an additional 2,220 warrants had vested based on the note being outstanding for 10 months, for a total of 7,460 vested warrants.

	By: Curtis A. Loveland Attorney-in-Fact	06/12/2008
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number.