<DOCUMENT>
<TYPE>EX-10.F
<SEQUENCE>3
<FILENAME>ex10f.txt
<TEXT>

                                                                   Exhibit 10(f)


[M&T Bank LOGO]
                                                                  EQUIPMENT LINE
                                                                CREDIT AGREEMENT
                                                                        New York

March 24,2005

BORROWER: SONO-TEK CORPORATION, a corporation organized under the laws of
New York

Address of residence/chief executive office: 2012 Route 9W, Milton, New York
12547

BANK: MANUFACTURERS AND TRADERS TRUST COMPANY, a New York banking corporation
      with its principal banking office at One M&T Plaza, Buffalo, New York
      14240 Attention: Office of General Counsel

The Bank and the Borrower, intending to be legally bound, agree as follows:

I. DEFINITIONS.

      a.    Capital Expenditures. The term "Capital Expenditures" means, for any
            fiscal year, the aggregate of all expenditures (whether paid in cash
            or accrued as liabilities, and including expenditures for
            obligations under any lease with respect to which Borrower's
            obligations thereunder should, in accordance with G.A.A.P., be
            capitalized and reflected as a liability on the balance sheet of
            Borrower) by Borrower during such period that are required by
            G.A.A.P. to be included in or reflected by the property, plant or
            equipment or similar fixed asset accounts on the balance sheet of
            Borrower.

      b.    Cash Flow. The term "Cash Flow" means the sum of (i) net income
            after tax, dividends and distributions, plus (ii) depreciation
            expense and amortization, plus (iii) Interest Expense, all
            determined in accordance with G.A.A.P.

      c.    Cash Flow Coverage. The term "Cash Flow Coverage" means the ratio of
            Cash Flow to the sum of (i) the current portion of all Long Term
            Debt as specified in the financial statement dated twelve (12)
            months prior, plus (ii) Interest Expense, all determined in
            accordance with G.A.A.P.

      d.    Credit. The term "Credit" means any and all credit facilities and
            any other financial accommodations made by the Bank in favor of the
            Borrower whether now or hereafter in existence.

      e.    Current Assets. The term "Current Assets" means, at any time, the
            aggregate amount of all current assets, including, but not limited
            to, cash, cash equivalents, marketable securities, receivables
            maturing within twelve (12) months from such time, and inventory
            (net of LIFO Reserve), but excluding prepaid expenses and officer,
            stockholder, employee and related entity advances and receivables,
            all as determined in accordance with G.A.A.P.

      f.    Current Liabilities. The term "Current Liabilities" means, at any
            time, the aggregate amount of all liabilities and obligations which
            are due and payable on demand or within twelve (12) months from such
            time, or should be properly reflected as attributable to such twelve
            (12) month period in accordance with G.A.A.P.

      g.    Current Ratio. The term "Current Ratio" means the ratio of Current
            Assets to Current Liabilities.

      h.    Equipment Line of Credit. The term "Equipment Line of Credit" means
            the credit facility extended to the Borrower by the Bank pursuant to
            Section 2 of this Agreement.

      i.    G.A.A.P. The term "G.A.A.P." means, with respect to any date of
            determination, generally accepted accounting principles as used by
            the Financial Accounting Standards Board and/or the American
            Institute of Certified Public Accountants consistently applied and
            maintained throughout the periods indicated.

      j.    Interest Expense. The term "Interest Expense" means all finance
            charges reflected on the income statement as interest expense for
            all obligations of Borrower to any person, including, but not
            limited to, Bank, as shown on the balance sheet in accordance with
            G.A.A.P.

      k.    Long Term Debt. The term "Long Term Debt" means all obligations of
            Borrower to any person, including, but not limited to, the
            Obligations, payable more than twelve (12) months from the date of
            their creation, which in accordance with G.A.A.P. are shown on the
            balance sheet as a liability (excluding reserves for deferred income
            taxes) for the period then ended.

      l.    Maximum Line of Credit Amount. The term "Maximum Line of Credit
            Amount" means $150,000.00.

      m.    Obligations. The term "Obligations" means any and all indebtedness
            or other obligations of the Borrower to the Bank in any capacity,
            now existing or hereafter incurred, however created or evidenced,
            regardless of kind, class or form, whether direct, indirect,
            absolute or contingent (including obligations pursuant to any
            guaranty, endorsement, other assurance of payment or otherwise),
            whether joint or several, whether from time to time reduced and
            thereafter increased, or entirely extinguished and thereafter
            reincurred, together with all extensions, renewals and replacements
            thereof, and all interest, fees, charges, costs or expenses which
            accrue on or in connection with the foregoing, including any
            indebtedness or obligations (i) not yet outstanding but contracted
            for, or with regard to which any other commitment by the Bank
            exists; (ii) arising prior to, during or after any pendency of any
            bankruptcy, insolvency, receivership or other similar proceeding,
            regardless of whether allowed or allowable in such proceeding; (iii)
            owed by the Borrower to others and which the Bank obtained, or may
            obtain, by assignment or otherwise; and (iv) payable under this
            Agreement.

      n.    Quick Ratio. The term "Quick Ratio" means the ratio of Current
            Assets less inventory (net of LIFO Reserve), to Current Liabilities.

      o.    Subordinated Debt. The term "Subordinated Debt" means all
            indebtedness of the Borrower which has been formally subordinated to
            payment and collection of the Obligations.

      p.    Subsidiary. The term "Subsidiary" means any corporation or other
            business entity of which at least fifty percent (50%) of the voting
            stock or other ownership interest is owned by the Borrower directly
            or indirectly through one or more Subsidiaries. If the Borrower has
            no Subsidiaries, the provisions of this Agreement relating to the
            Subsidiaries shall be disregarded, without affecting the
            applicability of such provisions to the Borrower alone.


                                        1
<PAGE>

      q.    Tangible Net Worth. The term "Tangible Net Worth" means the
            aggregate assets of Borrower excluding all intangible assets,
            including, but not limited to, goodwill, licenses, trademarks,
            patents, copyrights, organization costs, appraisal surplus, officer,
            stockholder, related entity and employee advances or receivables,
            mineral rights and the like, less liabilities, plus Subordinated
            Debt, all determined in accordance with G.A.A.P. (except to the
            extent that under G.A.A.P. "tangible net worth" excludes leasehold
            improvements which are included in "Tangible Net Worth" as defined
            herein).

      r.    Total Liabilities. The term "Total Liabilities" means the aggregate
            amount of all assets of the Borrower less the sum of shareholder
            equity and Subordinated Debt (if any), as shown on the balance sheet
            in accordance with G.A.A.P.

      s.    Transaction Documents. The term Transaction Documents" means this
            Agreement and all documents, instruments or other agreements by the
            Borrower in favor of the Bank in connection (directly or indirectly)
            with the Obligations, whether now or hereafter in existence,
            including promissory notes, security agreements, guaranties and
            letter of credit reimbursement agreements.

      t.    Working Capital. The term "Working Capital" means that amount which
            is equal to the excess of Current Assets over Current Liabilities.

2. BASIC TERMS OF THE EQUIPMENT LINE OF CREDIT.

      a.    Advances. Subject to the continued compliance of Borrower with this
            Agreement and all other accompanying Transaction Documents and the
            continued absence of any default by Borrower or any indorser,
            guarantor or any other party liable for, or whose assets or any
            interest therein secures payment of any of the Obligations, Bank may
            advance to Borrower, for use by Borrower as hereafter provided, such
            sums as Borrower may request, but which shall not exceed in the
            aggregate at any one time outstanding the Maximum Line of Credit
            Amount. Borrower shall not request any advance of proceeds of the
            Equipment Line of Credit which exceeds the Maximum Line of Credit
            Amount. Even if the aggregate amount of advances made and
            outstanding under the Equipment Line of Credit shall at any time and
            for any reason exceed the Maximum Line of Credit Amount, Borrower
            shall nevertheless be liable for the entire amount outstanding with
            interest thereon in accordance with this Agreement and all
            accompanying Transaction Documents, and Borrower shall be
            responsible for observance of, performance of and compliance with
            all of the terms, covenants and provisions hereof and thereof.
            Advances under the Equipment Line of Credit shall be evidenced by
            separate term notes, in form and substance acceptable to Bank. The
            Equipment Line of Credit shall be utilized for purposes of making
            equipment and/or vehicle acquisitions. Within such limitations and
            subject to all of the terms and conditions set forth herein and in
            the other accompanying Transaction Documents, Borrower may borrow,
            repay and reborrow funds under the Equipment Line of Credit in
            accordance with the terms and conditions of this Agreement. Nothing
            contained in this Agreement shall be construed as obligating Bank to
            make any particular loan or advance to Borrower, and Borrower is not
            relying upon Bank to make or continue to make advances for any
            purpose whatsoever. All such loans or advances remain within the
            discretion of Bank.

      b.    Advance Procedure. With respect to each advance and all matters and
            transactions in connection therewith, Borrower hereby irrevocably
            authorizes Bank to accept, rely upon, act upon and comply with any
            oral or written instructions, requests, confirmation and orders of
            any employee or representative of Borrower who is so authorized or
            designated as a signer of loan documents under the provisions of
            Borrower's most recent resolutions or similar documents on file with
            Bank. Borrower acknowledges that the transmission between Borrower
            and Bank of any such instructions, requests, confirmations and
            orders involves the possibility or errors, omissions, mistakes and
            discrepancies and agrees to adopt such internal measures and
            operational procedures as may be necessary to protect its interests.
            By reason thereof, Borrower hereby assumes all risk of loss and
            responsibility for, releases and discharges Bank from any and all
            responsibility or liability for, and agrees to indemnify, reimburse
            on demand and hold Bank harmless from, any and all claims, actions,
            damages, losses, liability and expenses by reason of, arising out
            of, or in any way connected with or related to: (i) Banks accepting,
            relying and acting upon, complying with or observing any such
            instruction, request, confirmation or order: or (ii) any such error,
            omission, mistake, or discrepancy, provided such error, omission,
            mistake or discrepancy is not the result of negligence on the part
            of Bank.

3. REPRESENTATIONS AND WARRANTIES. The Borrower makes the following
representations and warranties and any "Additional Representations and
Warranties" on the schedule attached hereto and made part hereof (the
"Schedule"), all of which shall be deemed to be continuing representations and
warranties as long as this Agreement is in effect:

      a.    Good Standing; Authority. The Borrower and each Subsidiary (if
            either is not an individual) is duly organized, validly existing and
            in good standing under the laws of the jurisdiction in which it was
            formed. The Borrower and each Subsidiary is duly authorized to do
            business in each jurisdiction in which failure to be so qualified
            might have a material adverse effect on its business or assets and
            has the power and authority to own each of its assets and to use
            them in the ordinary course of business now and in the future.

      b.    Compliance. The Borrower and each Subsidiary conducts its business
            and operations and the ownership of its assets in compliance with
            each applicable statute, regulation and other law, including
            environmental laws. All approvals, including authorizations,
            permits, consents, franchises, licenses, registrations, filings,
            declarations, reports and notices (the "Approvals") necessary for
            the conduct of the Borrower's and each Subsidiary's business and for
            the Credit have been duly obtained and are in full force and effect.
            The Borrower and each Subsidiary is in compliance with the
            Approvals. The Borrower and each Subsidiary (if either is not an
            individual) is in compliance with its certificate of incorporation,
            by-laws, partnership agreement, articles of organization, operating
            agreement or other applicable organizational or governing document
            as may be applicable to the Borrower or a Subsidiary depending on
            its organizational structure ("Governing Documents"). The Borrower
            and each Subsidiary is in compliance with each agreement to which it
            is a party or by which it or any of its assets is bound.

      c.    Legality. The execution, delivery and performance by the Borrower of
            this Agreement and all related documents, including the Transaction
            Documents, (i) are in furtherance of the Borrower's purposes and
            within its power and authority; (ii) do not (A) violate any statute,
            regulation or other law or any judgment, order or award of any
            court, agency or other governmental authority or of any arbitrator
            with respect to the Borrower or any Subsidiary or (B) violate the
            Borrower's or any Subsidiary's Governing Documents (if either is not
            an individual), constitute a default under any agreement binding on
            the Borrower or any Subsidiary or result in a lien or encumbrance on
            any assets of the Borrower or any Subsidiary; and (iii) if the
            Borrower or any Subsidiary is not an individual, have been duly
            authorized by all necessary organizational actions.

      d.    Fiscal Year. The fiscal year of the Borrower is the calendar year
            unless the following blank states otherwise: year ending
            ____________.


                                       2
<PAGE>

      e.    Title to Assets. The Borrower and each Subsidiary has good and
            marketable title to each of its assets free of security interests,
            mortgages or other liens or encumbrances, except as set forth on the
            Schedule titled "Permitted Liens" or pursuant to the Bank's prior
            written consent.

      f.    Judgments and Litigation. There is no pending or threatened claim,
            audit, investigation, action or other legal proceeding or judgment,
            order or award of any court, agency or other governmental authority
            or arbitrator (any, an "Action") which involves the Borrower, its
            Subsidiaries or their respective assets and might have a material
            adverse effect upon the Borrower or any Subsidiary or threaten the
            validity of the Credit, any Transaction Document or any related
            document or action.

      g.    Full Disclosure. Neither this Agreement nor any certificate,
            financial statement or other writing provided to the Bank by or on
            behalf of the Borrower or any Subsidiary contains any statement of
            fact that is incorrect or misleading in any material respect or
            omits to state any fact necessary to make any such statement not
            incorrect or misleading. The Borrower has not failed to disclose to
            the Bank any fact that might have a material adverse effect on the
            Borrower or any Subsidiary.

4. AFFIRMATIVE COVENANTS. So long as this Agreement is in effect, the Borrower
will comply with any "Additional Affirmative Covenant" contained in the Schedule
and shall:

      a.    Financial Statements and Other Information. Promptly deliver to the
            Bank (i) within sixty (60) days after the end of each of its first
            three fiscal quarters, an unaudited consolidating and consolidated
            financial statement of the Borrower and each Subsidiary as of the
            end of such quarter, which financial statement shall consist of
            income and cash flows for the quarter, for the corresponding quarter
            in the previous fiscal year and for the period from the end of the
            previous fiscal year, with a consolidating and consolidated balance
            sheet as of the quarter end all in such detail as the Bank may
            request; (ii) within ninety (90) days after the end of each fiscal
            year, consolidating and consolidated statements of the Borrower's
            and each Subsidiary's income and cash flows and its consolidating
            and consolidated balance sheet as of the end of such fiscal year,
            setting forth comparative figures for the preceding fiscal year and
            to be (check applicable box, if no box is checked the financial
            statements shall be audited):

               |X| audited           |_| reviewed            |_| compiled

            by an independent certified public accountant acceptable to the
            Bank; all such statements shall be certified by the Borrower's chief
            financial officer to be correct and in accordance with the
            Borrower's and each Subsidiary's records and to present fairly the
            results of the Borrower's and each Subsidiary's operations and cash
            flows and its financial position at year end; and (iii) with each
            statement of income, a certificate executed by the Borrower's chief
            executive and chief financial officers or other such person
            responsible for the financial management of the Borrower (A) setting
            forth the computations required to establish the Borrower's
            compliance with each financial covenant, if any, during the
            statement period, (B) stating that the signers of the certificate
            have reviewed this Agreement and the operations and condition
            (financial or other) of the Borrower and each of its Subsidiaries
            during the relevant period and (C) stating that no Event of Default
            occurred during the period, or if an Event of Default did occur,
            describing its nature, the date(s) of its occurrence or period of
            existence and what action the Borrower has taken with respect
            thereto. The Borrower shall also promptly provide the Bank with
            copies of all annual reports, proxy statements and similar
            information distributed to shareholders, partners or members, and
            copies of all filings with the Securities and Exchange Commission
            and the Pension Benefit Guaranty Corporation, and shall provide, in
            form satisfactory to the Bank, such additional information, reports
            or other information as the Bank may from time to time reasonably
            request regarding the financial and business affairs of the Borrower
            or any Subsidiary. If the Borrower is an individual, the Borrower
            shall provide annually a personal financial statement in form and
            detail acceptable to the Bank and such other financial information
            as the Bank may from time to time reasonably request.

      b.    Accounting; Tax Returns and Payment of Claims. The Borrower and each
            Subsidiary will maintain a system of accounting and reserves in
            accordance with generally accepted accounting principles, has filed
            and will file each tax return required of it and, except as
            disclosed in the Schedule, has paid and will pay when due each tax,
            assessment, fee, charge, fine and penalty imposed by any taxing
            authority upon it or any of its assets, income or franchises, as
            well as all amounts owed to mechanics, materialmen, landlords,
            suppliers and the like in the normal course of business.

      c.    Inspections. Promptly upon the Bank's request, the Borrower will
            permit, and cause its Subsidiaries to permit, the Banks officers,
            attorneys or other agents to inspect its and its Subsidiary's
            premises, examine and copy its records and discuss its and its
            Subsidiary's business, operations and financial or other condition
            with its and its Subsidiary's responsible officers and independent
            accountants.

      d.    Operating Accounts. Maintain, and cause its Subsidiaries to
            maintain, all bank accounts with the Bank.

      e.    Changes in Management and Control. If the Borrower is not an
            individual, immediately upon any change in the identity of the
            Borrower's chief executive officers or in its beneficial ownership,
            the Borrower will provide to the Bank a certificate executed by its
            senior individual authorized to transact business on behalf of the
            Borrower, specifying such change.

      f.    Notice of Defaults and Material Adverse Changes. Immediately upon
            acquiring reason to know of (i) any Event of Default, (ii) any event
            or condition that might have a material adverse effect upon the
            Borrower or any Subsidiary or (iii) any Action, the Borrower will
            provide to the Bank a certificate executed by the Borrower's senior
            individual authorized to transact business on behalf of the
            Borrower, specifying the date(s) and nature of the event or the
            Action and what action the Borrower or its Subsidiary has taken or
            proposes to take with respect to it.

      g.    Insurance. Maintain its, and cause its Subsidiaries to maintain,
            property in good repair and will on request provide the Bank with
            evidence of insurance coverage satisfactory to the Bank, including
            fire and hazard, liability, workers' compensation and business
            interruption insurance and flood hazard insurance as required.

      h.    Further Assurances. Promptly upon the request of the Bank, the
            Borrower will execute, and cause its Subsidiaries to execute, and
            deliver each writing and take each other action that the Bank deems
            necessary or desirable in connection with any transaction
            contemplated by this Agreement.

5. NEGATIVE COVENANTS. As long as this Agreement is in effect, the Borrower
shall not violate, and shall not suffer or permit any of its Subsidiaries to
violate, any of the following covenants and any "Additional Negative Covenant"
on the Schedule. The Borrower shall not:


                                       3
<PAGE>

      a.    Indebtedness. Permit any indebtedness (including direct and
            contingent liabilities) not described on the Schedule titled
            "Permitted Indebtedness" except for trade indebtedness or current
            liabilities for salary and wages incurred in the ordinary course of
            business and not substantially overdue.

      b.    Guaranties. Become a guarantor, a surety, or otherwise liable for
            the debts or other obligations of another, whether by guaranty or
            suretyship agreement, agreement to purchase indebtedness, agreement
            for furnishing funds through the purchase of goods, supplies or
            services (or by way of stock purchase, capital contribution, advance
            or loan) for the purpose of paying or discharging indebtedness, or
            otherwise, except as an endorser of instruments for the payment of
            money deposited to its bank account for collection in the ordinary
            course of business and except as may be specified in the Schedule
            titled "Permitted Guaranties".

      c.    Liens. Permit any of its assets to be subject to any security
            interest, mortgage or other lien or encumbrance, except as set forth
            on the Schedule titled "Permitted Liens" and except for liens for
            property taxes not yet due; pledges and deposits to secure
            obligations or performance for workers' compensation, bids, tenders,
            contracts other than notes, appeal bonds or public or statutory
            obligations; and materialmen's, mechanics', carriers' and similar
            liens arising in the normal course of business.

      d.    Investments. Make any investment other than in FDIC insured deposits
            or United States Treasury obligations of less than one year, or in
            money market or mutual funds administering such investments, except
            as set forth on the Schedule titled "Permitted Investments".

      e.    Loans. Make any loan, advance or other extension of credit except as
            disclosed on the Schedule titled "Permitted Loans", except for
            endorsements of negotiable instruments deposited to the Borrower's
            deposit account for collection, trade credit in the normal course of
            business and intercompany loans approved in writing by the Bank.

      f.    Distributions. If the Borrower is not an individual, declare or pay
            any distribution, except for (i) dividends payable solely in stock
            and (ii) cash dividends paid to the Borrower by its Subsidiary.

      g.    Changes In Form. (i) Transfer or dispose of substantially all of its
            assets, (ii) acquire substantially all of the assets of any other
            entity, (iii) do business under or otherwise use any name other than
            its true name or (iv) make any material change in its business,
            structure, purposes or operations that might have a material adverse
            effect on the Borrower or any of its Subsidiaries. If the Borrower
            or any Subsidiary is not an individual, (i) participate in any
            merger, consolidation or other absorption or (ii) make, terminate or
            permit to be revoked any election pursuant to Subchapter S of the
            Internal Revenue Code.

6. FINANCIAL COVENANTS. During the term of this Agreement, the Borrower shall
not violate, and shall not suffer or permit any of its Subsidiaries to violate,
any of the following covenants (complete applicable financial covenant) or any
"Additional Financial Covenants" on the Schedule. For purposes of this Section,
if the Borrower has any Subsidiaries all references to the Borrower shall
include the Borrower and all of its subsidiaries on a consolidated basis. Unless
a different measurement period is specified, compliance for the financial
covenants shall be required at all times.

|_| a.   Borrower shall maintain Tangible Net Worth of not less than $_____,
         measured (select one: quarterly or annually) _____ as of each
         (select one: quarter or fiscal year) _____ end.

|_| b.   Borrower shall maintain a ratio of Total Liabilities to Tangible Net
         Worth of not greater than _____:_____, measured (select one: quarterly
         or annually) _____ as of each (select one: quarter or fiscal year)
         _____ end.

|_| c.   Borrower shall maintain a Current Ratio of not less than _____:_____,
         measured (select one: quarterly or annually) _____ as of each (select
         one: quarter or fiscal year) _____ end.

|_| d.   Borrower shall maintain Working Capital of not less than $_____,
         measured (select one: quarterly or annually) _____ as of each (select
         one: quarter or fiscal year) _____ end.

|_| e.   Borrower shall maintain Cash Flow Coverage of not less than
         _____:_____, measured for the previous four quarters as of each
         (select one: quarter or fiscal year) _____ end.

|_| f.   Without the prior written consent of Bank, Borrower shall not make
         any Capital Expenditures in excess of $_____ in the aggregate during
         any fiscal year of Borrower.

|_| g.   Borrower shall not pay or accrue during any fiscal year compensation
         (including but not limited to all salary, bonuses, consulting,
         management or other fees, rentals and other payments to any person
         owning or managing 5% or more of the Borrower or any relative or
         cohabitant of such a person, and to any entity under common control
         with or controlling the Borrower) exceeding $_____ in the aggregate.

|_| h.   Borrower shall not become obligated as lessee pursuant to operating
         leases exceeding $_____ in the aggregate during any fiscal year.

7. DEFAULT.

      a.    Events of Default. Any of the following events or conditions shall
            constitute an "Event of Default": (i) failure by the Borrower to pay
            when due (whether at the stated maturity, by acceleration, upon
            demand or otherwise) the Obligations, or any part thereof, or there
            occurs any event or condition which after notice, lapse of time or
            after both notice and lapse of time will permit acceleration of any
            Obligation; (ii) default by the Borrower in the performance of any
            obligation, term or condition of this Agreement, the other
            Transaction Documents or any other agreement with the Bank or any of
            its affiliates or subsidiaries (collectively, "Affiliates"); (iii)
            failure by the Borrower to pay when due (whether at the stated
            maturity, by acceleration, upon demand or otherwise) any
            indebtedness or obligation owing to any third party or any
            Affiliate, the occurrence of any event which could result in
            acceleration of payment of any such indebtedness or obligation or
            the failure to perform any agreement with any third party or any
            Affiliate; (iv) the Borrower is dissolved, becomes insolvent,
            generally fails to pay or admits in writing its inability generally
            to pay its debts as they become due; (v) the Borrower makes a
            general assignment, arrangement or composition agreement with or for
            the benefit of its creditors or makes, or sends notice of any
            intended, bulk sale; the sale, assignment, transfer or delivery of
            all or substantially all of the assets of the Borrower to a third
            party; or the cessation by the Borrower as a going business concern;
            (vi) the Borrower files a petition in bankruptcy or institutes any
            action under federal or state law for the relief of debtors or seeks
            or consents to the appointment of an administrator, receiver,
            custodian or similar official for the wind up of its business (or
            has such a petition or action filed against it and such petition
            action or appointment is not dismissed or stayed within forty-five
            (45) days); (vii) the reorganization, merger, consolidation or
            dissolution of the Borrower (or


                                       4
<PAGE>

            the making of any agreement therefor); (viii) the death or judicial
            declaration of incompetency of the Borrower, if an individual; (ix)
            the entry of any judgment or order of any court, other governmental
            authority or arbitrator against the Borrower; (x) falsity, omission
            or inaccuracy of facts submitted to the Bank or any Affiliate
            (whether in a financial statement or otherwise); (xi) an adverse
            change in the Borrower, its business, assets, operations, affairs or
            condition (financial or otherwise) from the status shown on any
            financial statement or other document submitted to the Bank or any
            Affiliate, and which change the Bank determines will have a material
            adverse affect on (a) the Borrower, its business, assets, operations
            or condition (financial or otherwise), or (b) the ability of the
            Borrower to pay or perform the Obligations; (xii) any pension plan
            of the Borrower fails to comply with applicable law or has vested
            unfunded liabilities that, in the opinion of the Bank, might have a
            material adverse effect on the Borrower's ability to repay its
            debts; (xiii) any indication or evidence received by the Bank that
            the Borrower may have directly or indirectly been engaged in any
            type of activity which, in the Bank's discretion, might result in
            the forfeiture or any property of the Borrower to any governmental
            authority; (xiv) the occurrence of any event described in Section
            7(a)(i) through and including 7(a)(xiii) with respect to any
            Subsidiary or to any endorser, guarantor or any other party liable
            for, or whose assets or any interest therein secures, payment of any
            of the Obligations; or (xv) the Bank in good faith deems itself
            insecure with respect to payment or performance of the Obligations.

      b.    Rights and Remedies Upon Default. Upon the occurrence of any Event
            of Default, the Bank without demand of performance or other demand,
            presentment, protest, advertisement or notice of any kind (except
            any notice required by law) to or upon the Borrower, any Subsidiary
            or any other person (all and each of which demands, presentments,
            protests, advertisements and notices are hereby waived), may
            exercise all rights and remedies under the Borrower's or its
            Subsidiaries' agreements with the Bank or its Affiliates, applicable
            law, in equity or otherwise and may declare all or any part of any
            Obligations not payable on demand to be immediately due and payable
            without demand or notice of any kind and terminate any obligation it
            may have to grant any additional loan, credit or other financial
            accommodation to the Borrower or any Subsidiary. All or any part of
            any Obligations whether or not payable on demand, shall be
            immediately due and payable automatically upon the occurrence of an
            Event of Default in Section 7(a)(vi) above. The provisions hereof
            are not intended in any way to affect any rights of the Bank with
            respect to any Obligations which may now or hereafter be payable on
            demand.

8. EXPENSES. The Borrower shall pay to the Bank on demand all costs and expenses
(including all fees and disbursements of counsel retained for advice, suit,
appeal or other proceedings or purpose and of any experts or agents it may
retain), which the Bank may incur in connection with (i) the administration of
the Obligations, including any administrative fees the Bank may impose for the
preparation of discharges, releases or assignments to third-parties; (ii) the
enforcement and collection of any Obligations or any guaranty thereof; (iv) the
exercise, performance, enforcement or protection of any of the rights of the
Bank hereunder; or (v) the failure of the Borrower or any Subsidiary to perform
or observe any provisions hereof. After such demand for payment of any cost,
expense or fee under this Section or elsewhere under this Agreement, the
Borrower shall pay interest at the highest default rate specified in any
instrument evidencing any of the Obligations from the date payment is demanded
by the Bank to the date reimbursed by the Borrower. All such costs, expenses or
fees under this Agreement shall be added to the Obligations.

9. TERMINATION. This Agreement shall remain in full force and effect until (i)
all Obligations outstanding, or contracted or committed for (whether or not
outstanding), shall be finally and irrevocably paid in full and (ii) all
Transaction Documents have been terminated by the Bank.

10. RIGHT OF SETOFF. If an Event of Default occurs, the Bank shall have the
right to set off against the amounts owing under this Agreement and the other
Transaction Documents any property held in a deposit or other account or
otherwise with the Bank or its Affiliates or otherwise owing by the Bank or its
Affiliates in any capacity to the Borrower, its subsidiary or any guarantor of,
or endorser of any of the Transaction Documents evidencing, the Obligations.
Such setoff shall be deemed to have been exercised immediately at the time the
Bank or such Affiliate elect to do so.

11. MISCELLANEOUS.

      a.    Notices. Any demand or notice hereunder or under any applicable law
            pertaining hereto shall be in writing and duly given if delivered to
            Borrower (at its address on the Bank's records) or to the Bank (at
            the address on page one and separately to the Bank officer
            responsible for Borrower's relationship with the Bank). Such notice
            or demand shall be deemed sufficiently given for all purposes when
            delivered (i) by personal delivery and shall be deemed effective
            when delivered, or (ii) by mail or courier and shall be deemed
            effective three (3) business days after deposit in an official
            depository maintained by the United States Post Office for the
            collection of mail or one (1) business day after delivery to a
            nationally recognized overnight courier service (e.g., Federal
            Express). Notice by e-mail is not valid notice under this or any
            other agreement between Borrower and the Bank.

      b.    Generally Accepted Accounting Principles. Any financial calculation
            to be made, all financial statements and other financial information
            to be provided, and all books and records, system of accounting and
            reserves to be kept in connection with the provisions of this
            Agreement, shall be in accordance with generally accepted accounting
            principles consistently applied during each interval and from
            interval to interval; provided, however, that in the event changes
            in generally accepted accounting principles shall be mandated by the
            Financial Accounting Standards Board or any similar accounting body
            of comparable standing, or should be recommended by Borrower's
            certified public accountants, to the extent such changes would
            affect any financial calculations to be made in connection herewith,
            such changes shall be implemented in making such calculations only
            from and after such date as Borrower and the Bank shall have amended
            this Agreement to the extent necessary to reflect such changes in
            the financial and other covenants to which such calculations relate.

      c.    Indemnification. If after receipt of any payment of all, or any part
            of, the Obligations, the Bank is, for any reason, compelled to
            surrender such payment to any person or entity because such payment
            is determined to be void or voidable as a preference, an
            impermissible setoff, or a diversion of trust funds, or for any
            other reason, the Transaction Documents shall continue in full force
            and the Borrower shall be liable, and shall indemnify and hold the
            Bank harmless for, the amount of such payment surrendered. The
            provisions of this Section shall be and remain effective
            notwithstanding any contrary action which may have been taken by the
            Bank in reliance upon such payment, and any such contrary action so
            taken shall be without prejudice to the Banks rights under the
            Transaction Documents and shall be deemed to have been conditioned
            upon such payment having become final and irrevocable. The
            provisions of this Section shall survive the termination of this
            Agreement and the Transaction Documents.

      d.    Further Assurances, From time to time, the Borrower shall take, and
            cause its Subsidiaries to take, such action and execute and deliver
            to the Bank such additional documents, instruments, certificates,
            and agreements as the Bank may reasonably request to effectuate the
            purposes of the Transaction Documents.


                                       5
<PAGE>

      e.    Cumulative Nature and Non-Exclusive Exercise of Rights and Remedies.
            All rights and remedies of the Bank pursuant to this Agreement and
            the Transaction Documents shall be cumulative, and no such right or
            remedy shall be exclusive of any other such right or remedy. In the
            event of any unreconcilable inconsistencies, this Agreement shall
            control. No single or partial exercise by the Bank of any right or
            remedy pursuant to this Agreement or otherwise shall preclude any
            other or further exercise thereof, or any exercise of any other such
            right or remedy, by the Bank.

      f.    Governing Law; Jurisdiction. This Agreement has been delivered to
            and accepted by the Bank and will be deemed to be made in the State
            of New York. This Agreement will be interpreted in accordance with
            the laws of the State of New York excluding its conflict of laws
            rules. BORROWER HEREBY IRREVOCABLY CONSENTS TO THE EXCLUSIVE
            JURISDICTION OF ANY STATE OR FEDERAL COURT IN THE STATE OF NEW YORK
            IN A COUNTY OR JUDICIAL DISTRICT WHERE THE BANK MAINTAINS A BRANCH
            AND CONSENTS THAT THE BANK MAY EFFECT ANY SERVICE OF PROCESS IN THE
            MANNER AND AT BORROWER'S ADDRESS SET FORTH ABOVE FOR PROVIDING
            NOTICE OR DEMAND; PROVIDED THAT NOTHING CONTAINED IN THIS AGREEMENT
            WILL PREVENT THE BANK FROM BRINGING ANY ACTION, ENFORCING ANY AWARD
            OR JUDGMENT OR EXERCISING ANY RIGHTS AGAINST BORROWER INDIVIDUALLY,
            AGAINST ANY SECURITY OR AGAINST ANY PROPERTY OF BORROWER WITHIN ANY
            OTHER COUNTY, STATE OR OTHER FOREIGN OR DOMESTIC JURISDICTION.
            Borrower acknowledges and agrees that the venue provided above is
            the most convenient forum for both the Bank and Borrower. Borrower
            waives any objection to venue and any objection based on a more
            convenient forum in any action instituted under this Agreement.

      g.    Joint and Several; Successors and Assigns. If there is more than one
            Borrower, each of them shall be jointly and severally liable for all
            amounts, which become due, and the performance of all obligations
            under this Agreement, and the term "the Borrower" shall include each
            as well as all of them. This Agreement shall be binding upon the
            Borrower and upon its heirs and legal representatives, its
            successors and assignees, and shall inure to the benefit of, and be
            enforceable by, the Bank, its successors and assignees and each
            direct or indirect assignee or other transferee of any of the
            Obligations; provided, however, that this Agreement may not be
            assigned by the Borrower without the prior written consent of the
            Bank.

      h.    Waivers; Changes In Writing. No failure or delay of the Bank in
            exercising any power or right hereunder shall operate as a waiver
            thereof, nor shall any single or partial exercise of any such right
            or power, or any abandonment or discontinuance of steps to enforce
            such a right or power, preclude any other or further exercise
            thereof or the exercise of any other right or power. The Borrower
            expressly disclaims any reliance on any course of dealing or usage
            of trade or oral representation of the Bank (including
            representations to make loans to the Borrower) and agrees that none
            of the foregoing shall operate as a waiver of any right or remedy of
            the Bank. No notice to or demand on the Borrower in any case shall
            entitle the Borrower to any other or further notice or demand in
            similar or other circumstances. No waiver of any provision of this
            Agreement or consent to any departure by the Borrower therefrom
            shall in any event be effective unless made specifically in writing
            by the Bank and then such waiver or consent shall be effective only
            in the specific instance and for the purpose for which given. No
            modification to any provision of this Agreement shall be effective
            unless made in writing in an agreement signed by the Borrower and
            the Bank.

      i.    Interpretation. Unless the context otherwise clearly requires,
            references to plural includes the singular and references to the
            singular include the plural; references to "individual" shall mean a
            natural person and shall include a natural person doing business
            under an assumed name (e.g., a "DBA"); the word "or" has the
            inclusive meaning represented by the phrase "and/or"; the word
            "including", "includes" and "include" shall be deemed to be followed
            by the words "without limitation"; and captions or section headings
            are solely for convenience and not part of the substance of this
            Agreement. Any representation, warranty, covenant or agreement
            herein shall survive execution and delivery of this Agreement and
            shall be deemed continuous. Each provision of this Agreement shall
            be interpreted as consistent with existing law and shall be deemed
            amended to the extent necessary to comply with any conflicting law.
            If any provision nevertheless is held invalid, the other provisions
            shall remain in effect. The Borrower agrees that in any legal
            proceeding, a photocopy of this Agreement kept in the Bank's course
            of business may be admitted into evidence as an original.

      j.    Waiver of Jury Trial. THE BORROWER AND THE BANK HEREBY KNOWINGLY,
            VOLUNTARILY, AND INTENTIONALLY WAIVE ANY RIGHT TO TRIAL BY JURY THE
            BORROWER AND THE BANK MAY HAVE IN ANY ACTION OR PROCEEDING, IN LAW
            OR IN EQUITY, IN CONNECTION WITH THIS AGREEMENT OR ANY TRANSACTIONS
            RELATED HERETO. THE BORROWER REPRESENTS AND WARRANTS THAT NO
            REPRESENTATIVE OR AGENT OF THE BANK HAS REPRESENTED, EXPRESSLY OR
            OTHERWISE, THAT THE BANK WILL NOT, IN THE EVENT OF LITIGATION, SEEK
            TO ENFORCE THIS JURY TRIAL WAIVER. THE BORROWER ACKNOWLEDGES THAT
            THE BANK HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG
            OTHER THINGS, THE PROVISIONS OF THIS SECTION.

Acknowledgment. Borrower acknowledges that it has read and understands all the
provisions of this Agreement, including the Governing Law, Jurisdiction and
Waiver of Jury Trial, and has been advised by counsel as necessary or
appropriate.

Date: March 24, 2005

TIN # 14-1568099

SONO-TEK CORPORATION

By: /s/ Christopher L. Coccio
    --------------------------------------
    Christopher L. Coccio, President

Witness: /s/ Ellen R. O'Leary
         ---------------------------------
         (Signature)

         Ellen R. O'Leary
         ---------------------------------
         (Typed Name)


                                       6
<PAGE>

ACCEPTED:

Date: March 24, 2005

MANUFACTURERS AND TRADERS TRUST COMPANY

By: /s/ Ellen R. O'Leary
    --------------------------------------
    Ellen O'Leary, Vice President


                                 ACKNOWLEDGMENT

STATE OF NEW YORK          )
                           :  SS.
COUNTY OF ULSTER           )

      On the 24th day of March, in the year 2005, before me, the undersigned, a
Notary Public in and for said State, personally appeared CHRISTOPHER L. COCCIO,
personally known to me or proved to me on the basis of satisfactory evidence to
be the individual whose name is subscribed to the within said instrument and
acknowledged to me that he/she executed the same in his/her capacity, and that
by his/her signature on the instrument, the individual, or the person upon
behalf of which the individual acted, executed the instrument.

/s/ Claudine Y. Corda
---------------------------------------------
Notary Public

                                 [NOTARY STAMP]




                               FOR BANK USE ONLY
Authorization Confirmed:
                         -------------------------------------------------------
             (if required per Credit Policy Manual Section 4.15.10, paragraph 1)


                                       7
<PAGE>

                                    SCHEDULE


Additional Representations and Warranties (ss. 3)



Additional Affirmative Covenants (ss. 4)



Permitted Indebtedness (ss. 5(a))



Permitted Guaranties (ss. 5(b))



Permitted Liens (ss. 5(c))



Permitted Investments (ss. 5(d))



Permitted Loans (ss. 5(e))



Additional Financial Covenants (ss. 6)


                                        8
</TEXT>
</DOCUMENT>
