D-40 Company
Notes to Consolidated Financial Statements
August 31, 2008, 2007 and 2006

Note 14. Subsequent Events

On October 6, 2008, the Company’s Board of Directors declared a cash dividend of $0.25 per share payable on October 31, 2008 to shareholders of record on October 17, 2008.

On September 22, 2008, the Company entered into an unsecured loan agreement (the “Agreement”) with Union Bank of California, N.A. (the “Bank”). The new credit facility under the Agreement consists of a $10 million revolving loan (the “Revolving Loan”) which was undrawn at closing. The proceeds of the Revolving Loan will be used for the Company’s general working capital purposes. The Company may borrow, repay and re-borrow all or part of the Revolving Loan in amounts of not less than $100,000. Under the terms of the Agreement, outstanding borrowings under the Revolving Loan would accrue interest at either LIBOR plus 1.0 percent or the Bank’s variable interest rate, as selected by the Company. The Revolving Loan expires in October 2011, at which time all unpaid principal and interest of the Revolving Loan will be due and payable.