Notes to Consolidated Financial Statements (Dollars in thousands, except per share amounts.)

(15) Commitments, Contingencies and Related Party Transactions The Company was notified in September 1994 that a suit was brought by a competitor regarding the Company's acquisition of certain corporations in Mexico. The suit alleges that this acquisition violated the competitor's previous option to acquire the same corporations. The suit seeks unspecified damages. The Company believes that the suit is without merit and intends to defend it vigorously. The former owners of these corporations have agreed to indemnify the Company should an unfavorable outcome result. The Company is a party to certain other legal proceedings in the ordinary course of its business but does not regard any such proceedings as material. As of October 31, 1998, the Company had advanced approximately $1,014, including accrued interest, to fund premiums on a split-dollar, "second-to-die" life insurance policy on behalf of the Company's chairman, Mr. Frank B. Stewart, Jr., and Mrs. Stewart. The advances are collateralized by the assignment of other insurance policies and the pledge of Class A Common Stock of the Company. In 1992, the Company agreed to continue to advance such premiums for a twelve-year period and will be repaid at the earliest of (a) the surrender of the policy, (b) the deaths of Mr. and Mrs. Stewart, or (c) 60 days following payment in full of all premiums on the policy. The Company has noncancellable operating leases, primarily for land and buildings, that expire over the next one to 19 years, except for two leases which expire in 2032 and 2040. Rent expense under these leases was $8,616, $6,025 and $3,997 for the years ended October 31, 1998, 1997 and 1996, respectively. The Company's future minimum lease payments as of October 31, 1998 are $8,002, $6,379, $4,761, $4,075, $3,058 and $30,513 for the years ending October 31, 1999, 2000, 2001, 2002, 2003 and later years, respectively. Additionally, the Company has entered into noncompete agreements with prior owners of acquired subsidiaries that expire through 2012. The Company's future noncompete payments as of October 31, 1998 for the same periods are $7,030, $6,233, $5,847, $5,223, $4,562 and $8,874, respectively. The Company leases office space from an affiliated company. Rental payments were approximately $636, $602 and $559 for the years ended October 31, 1998, 1997 and 1996, respectively.

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