BORROWING AGREEMENT

6 Months Ended

Oct. 31, 2011

BORROWING AGREEMENT

BORROWING AGREEMENT

7.          BORROWING AGREEMENT

In August 2011, the Company renewed its $2.0 million line of credit with its bank.  The renewed line of credit has substantially the same terms as the prior line of credit and expires on July 31, 2012. There were no borrowings outstanding under the line of credit as of October 31, 2011 and the Company was in compliance with its financial covenants.