NOTE 11. COMMITMENTS AND CONTINGENCIES Purchase Obligation In May 2012, the Company entered into a contract to purchase renewable diesel oil ( RDO ) beginning in July 2012 through the 2013 fishing season. The RDO will be utilized in one of the Company s four fish processing plants. The contract is priced at a discount to prevailing market prices of the BTU equivalent of Platts NY Harbor 2.2% Sulfur No.6 Oil as delivery is made throughout the fishing seasons. The contract was modified in June 2013 and as of September 30, 2013, approximately 0.2 million gallons are still committed under the contract, subject to certain force majeure provisions. InCon Contingency In September 2011, the Company acquired all of the outstanding equity of InCon Processing, L.L.C., ( InCon ), a Delaware limited liability company, in a cash transaction pursuant to the terms of an equity purchase agreement. The equity of InCon was indirectly held by four individuals (the  Sellers ), three of whom continue to be employed by InCon and share in the management of InCon s business. InCon is now a wholly owned subsidiary of the Company. In addition to the acquisition date cash purchase price, the Sellers may also earn additional amounts based on the annual earnings before interest, taxes, depreciation, and amortization ( EBITDA ) of InCon s toll processing and specialty product business during calendar years 2012 through 2016. The Company and the Sellers amended the earn-out terms on April 25, 2013 by lowering the earn-out by 35% of the original formula in 2013 and all future years. The annual earn-out provisions (as amended) are determined based on a percentage of InCon s EBITDA, adjusted for certain product sales and costs, which percentage ranges from 3.25% of the first $3.0 million of EBITDA to 19.5% of EBITDA in excess of $12.0 million. The annual earn-out payments, if any, will be estimated on a quarterly basis and paid subsequent to year end. The Company will record the estimated contractual obligation as compensation expense during each