Notes Payable

In December 2012, the Company drew down $220,000 from its revolving loan agreement with a group of six banks to fund a portion of the purchase price of the acquisition of PDC. Prior to April 30, 2013, the Company repaid $173,000 of the borrowing with cash on hand. The Company intends to repay the remainder of the borrowing within 12 months of the current period end, as such, the borrowing is classified as "Notes Payable" within current liabilities on the Condensed Consolidated Balance Sheets. During the nine months ended April 30, 2013, the maximum amount outstanding on the revolving loan agreement was $220,000. As of April 30, 2013, the outstanding balance on the credit facility was $47,000 and there was $253,000 available for future borrowing under the credit facility, which can be increased to $403,000 at the Company's option, subject to certain conditions.

In February 2013, the Company entered into a USD-denominated line of credit facility with in China. The facility supports USD-denominated borrowing to fund working capital and operations for the Company's Chinese entities. During the nine months ended April 30, 2013, the maximum amount outstanding was $11,658 which was the balance outstanding at April 30, 2013. As of April 30, 2013, there was $14,542 available for future borrowing under this credit facility.

As of April 30, 2013, borrowings on the revolving loan agreement and China line of credit are as follows:



	Interest Rate		April 30, 2013
USD-denominated borrowing on revolving loan agreement	1.3000	%	$	47,000
USD-denominated borrowing on China line of credit	1.1332	%	11,658
Notes payable	1.2000	%	58,658