Related Party Transactions

9 Months Ended

Jul. 31, 2011

Notes to Financial Statements

Related Party Transactions

NOTE   13  -  RELATED PARTY TRANSACTIONS:

The Company has engaged its 40% partner in GCC as an outside contractor (the “Partner”).  Included in contract labor expense are expenses incurred from the Partner during the nine months ended July 31, 2011 and 2010 of $443,496 and $406,254, respectively, and $154,656 and $115,518 for the three months ended July 31, 2011 and 2010, respectively, for the processing of finished goods.

An employee of one of the top four vendors is a director of the Company.  Purchases from that vendor totaled approximately $18,475,000 and $6,800,000 for the nine and three months ended July 31, 2011 and $15,333,000 and $3,687,000 for the nine and three months ended July 31, 2010.  The corresponding accounts payable balance to this vendor was approximately $1,642,000 and $553,000 at July 31, 2011 and 2010, respectively.

In January 2005, the Company established the “Coffee Holding Co., Inc. Non-Qualified Deferred Compensation Plan.”  Currently, there is only one participant in the plan: Andrew Gordon, the Company’s Chief Executive Officer.  Within the plan guidelines, this employee is deferring a portion of his current salary and bonus.  The assets are held in a separate trust.  The deferred compensation payable represents the liability due to an officer of the Company.  The assets are included in the Deposits and other assets in the accompanying balance sheets.  Additional information related to the Company’s deferred compensation plan is disclosed in Note 15 to the condensed consolidated financial statements.  The deferred compensation asset and liability at July 31, 2011 and October 31, 2010 were $606,599 and $540,642, respectively.  Deferred compensation expenses included in officers’ salaries were approximately $0 for the three and nine months ended July 31, 2011 and $0 and $13,462 during the three and nine months ended July 31, 2010, respectively.