COMMITMENTS AND CONTINGENCIES

12 Months Ended

Oct. 31, 2011

Notes to Financial Statements

COMMITMENTS AND CONTINGENCIES

OPERATING LEASES:

In February 2004, the Company entered into a lease for office and warehouse space in La Junta City, Colorado. This lease, which is at a monthly rental of $8,341 beginning January 2005, expires on January 31, 2024. Rent charged to operations amounted to $95,504 for the years ended October 31, 2011 and 2010.

In October 2008, the Company entered into a lease for office and warehouse space in Staten Island, NY. This lease, which is at a monthly rental beginning November 2008, expires on October 31, 2023 and includes annual rent increases. Rent charged to operations amounted to $147,696 for the years ended October 31, 2011 and 2010.

The Company also uses a variety of independent, bonded commercial warehouses to store its green coffee beans.

In May 2010, the Company entered into a lease for office space in Vancouver, WA. This lease, which is at a monthly rental beginning May 17, 2010, expires on June 1, 2012. Rent charged to operations amounted to $31,800 and $15,900 for the years ended October 31, 2011 and 2010, respectively.

The aggregate minimum future lease payments as of October 31, 2011 for each of the next five years and thereafter are as follows:

October 31,
2012	$	239,354
2013		227,155
2014		232,238
2015		237,523
2016		243,021
Thereafter		1,925,830
	$	3,105,121

401 (K) RETIREMENT PLAN:

The Company has a 401(k) Retirement Plan, which covers all the full time employees who have completed one year of service and have reached their 21^st birthday. The Company matches 100% of the aggregate salary reduction contribution up to the first 3% of compensation and 50% of aggregate contribution of the next 2% of compensation. Contributions to the plan aggregated $57,696 and $55,819 for the years ended October 31, 2011 and 2010, respectively.