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balance sheets at December 31, 2011 and 2010, respectively. Minimum funding standards generally require a plan’s
underfunding to be made up over a seven-year period. The amount of underfunding could increase or decrease, based on
investment returns of the plan’s assets or changes in the assumed discount rate used to value benefit obligations.
17. RELATED PARTY TRANSACTIONS
Commercial Contracts
Three subsidiaries have executed separate financing agreements for equipment with AXIS Capital Inc. Gordon F. Glade,
President and Chief Executive Officer of AXIS Capital is a member of the Company’s Board of Directors. Totals of $0.5
million and $1.1 million were included in debt at December 31, 2011 and 2010, respectively, under these financing
arrangements. Payments, including principal and interest, totaled $0.7 million, $0.7 million and $0.6 million for the years
ended December 31, 2011, 2010 and 2009, respectively. The highest amount outstanding during the fiscal year ended
December 31, 2011 was $1.1 million and the weighted average interest rate for all financing agreements is 6.9%.
The Company has entered into ethanol purchase and sale agreements and throughput agreements with Center Oil
Company. Gary R. Parker, President and Chief Executive Officer of Center Oil, is a member of the Company’s Board of
Directors. During the year ended December 31, 2011, cash receipts from Center Oil totaled $146.9 million and payments to
Center Oil totaled $8.7 million on these contracts. During the year ended December 31, 2010, cash receipts from Center Oil
totaled $81.6 million and payments to Center Oil totaled $6.3 million on these contracts. During the year ended December
31, 2009, cash receipts and payments totaled $112.0 million and $15.5 million, respectively, on these contracts. The
Company had $1.0 million and $6.1 million included in accounts receivable at December 31, 2011 and 2010, respectively,
$69 thousand in outstanding payables at December 31, 2011 and no outstanding payables under these agreements at
December 31, 2010.
Aircraft Lease
The Company has entered into an agreement with Hoovestol, Inc. for the lease of an aircraft. Wayne B. Hoovestol,
President of Hoovestol Inc., is Chairman of the Company’s Board of Directors. The Company has agreed to pay $6,667 per
month for use of up to 100 hours per year of the aircraft. Any flight time in excess of 100 hours per year will incur additional
hourly-based charges. For the years ended December 31, 2011, 2010 and 2009, payments related to this lease totaled $149
thousand, $67 thousand and $6 thousand, respectively, and at December 31, 2011 and 2010, the Company did not have any
outstanding payables related to this lease.