LEASES

The Company has a lease agreement with a leasing company for 75 hopper cars to assist with the transport of distiller's grains by rail. In November 2010, the original lease was renewed for an additional five-year period. Based on final manufacturing and interest costs, the Company will pay the leasing company $620 per month plus $0.03 per mile traveled in excess of 36,000 miles per year. Rent expense for these leases was $552,000, $553,000 and $604,000 for the fiscal years ended October 31, 2012, 2011 and 2010, respectively.

At October 31, 2012, the Company had lease agreements with three leasing companies for 177 rail car leases for the transportation of the Company's ethanol with various maturity dates through October 2017. The rail car lease payments are due monthly in the aggregate amount of approximately $89,000. Rent expense for these leases was $1,278,000, $1,171,000 and $1,058,000 for the fiscal years ended October 31, 2012, 2011 and 2010, respectively.

At October 31, 2012, the Company had the following commitments for payments of rentals under operating leases which at inception had a non-cancelable term of more than one year:



November 1, 2012 to October 31, 2013		$	1,582,614
November 1, 2013 to October 31, 2014	1,307,919
November 1, 2014 to October 31, 2015	1,034,139
November 1, 2015 to October 31, 2016	343,990
November 1, 2016 to October 31, 2017	127,504
Thereafter	60,816
Total minimum lease commitments		$	4,456,982