COMMITMENTS AND CONTINGENCIES

12 Months Ended

Apr. 30, 2012

Commitments And Contingencies

COMMITMENTS AND CONTINGENCIES

NOTE 15 - COMMITMENTS AND CONTINGENCIES

Employment Agreements

The Company has entered into employment contracts ranging from one to five years with certain of its employees.  The aggregate base salary commitments under these contracts at April 30, 2012 are summarized as follows:

Year Ending April 30,
2013	$	1,827,521
2014		1,235,750
2015		711,667
2016		575,000
2017		431,250
Total aggregate base salary commitments	$	4,781,188

Litigation

From time to time, the Company may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm the Company's business. The Company is currently not aware of any such legal proceedings or claims that we believe will have, individually or in the aggregate, a material adverse effect on our business, consolidated financial condition, operating results, or cash flows.

Performance and payment bonds

The Company is contingently liable to Zurich and its affiliate Fidelity and Deposit Company of Maryland (F&D) under a general indemnity agreement. Zurich and F&D, as surety, have issued certain performance and payment bonds on behalf of owners or customers regarding the Company’s work on various projects.  The Company agrees to indemnify the surety for any payments made on contracts of suretyship, guaranty or indemnity. In this regard, on July 12, 2012, Zurich and F&D received notice of a claim of approximately $1.7 million against a payment bond on the Camden County Improvement Authority (CCIA) project. The surety is currently investigating this claim.  The Company has recorded the appropriate accounts payable related to this project. The Company believes that all contingent liabilities will be satisfied by its performance and payment on the CCIA contract. 

Lease Commitments

The Company leases its office facilities pursuant to noncancelable operating leases expiring through July 2016. The Company also has noncancelable vehicle leases.  The minimum rental commitments under these noncancelable leases at April 30, 2012 are summarized as follows:

Year ending April 30,
2013	$	720,227
2014		461,148
2015		137,592
2016		24,355
2017		10,333
Total minimum lease payments	$	1,353,655

Rent expense for all operating leases was approximately $840,000 and $1,073,000 in 2012 and 2011, respectively.