10. LEASE OBLIGATIONS

The Company maintains office space at 101 NW 1st Street, Suite 213, Evansville, IN 47708. The Company maintains its current office space under a 3 year lease, ending March of 2014, at the rate of $2,583.33 per month. This lease agreement is currently in default.

Our wholly-owned subsidiary, Imperial Chemical Company’s principal executive offices are located at 4533 Brittmoore Road, Houston, TX under a 5 year lease, ending August of 2016, at the rate of $10,500 per month beginning in August 2011. The Company leases certain vehicles, equipment and railcars for its biodiesel operation in Middletown, IN under lease contracts with Stark Leasing, Trinity Industries and others. There are two vehicle leases, ending from March 2013 to March of 2014, ranging from $535 to $552 per month. Leases for two pieces of lab equipment end in September and April of 2014 and are $1,824 and $524 per month. Additional centrifuge equipment used in the biodiesel operations are leased on a month-to-month basis and are $10,500 per month. The Company has three lease obligations related to railcars. The first railcar lease is with GLNX and is for the use of 20 railcars. The GLNX lease ends in January 2014 and is $9,800 per month. Six railcars are also leased from Rampart Range through March 2012 at $3,900 per month. An additional 39 railcars are leased through Trinity until February 2014 at $19,500 per month. The Company is currently in default on the Trinity railcar lease and is working to return these cars to Trinity.

The Company also leases a rail spur in Muncie, Indiana for use in its biodiesel operations. The rail spur is leased through May 2012 and costs $2,065 per month.

Total future lease payments for the years ended July 31, under all of the above operating leases are: