21. RELATED PARTY TRANSACTIONS

12 Months Ended

Oct. 31, 2012

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

21. RELATED PARTY TRANSACTIONS

Directors and Officers

The Baker family group, consisting of four current directors Henry Baker (Chairman Emeritus), Peter Baker (CEO), John Baker (Executive Vice President) and Ross Rapaport (Chairman), as trustee, together own a majority of our common stock.  In addition, in connection with the acquisition of Crystal Rock Spring Water Company in 2000, we issued members of the Baker family group 12% subordinated promissory notes secured by all of our assets.  The balance on these notes as of October 31, 2012 is $13,000,000.

Henry Baker is employed by the Company as an at-will employee at the discretion of management. Mr. Baker’s sons, John Baker and Peter Baker, have employment contracts with the Company through December 31, 2013.  They are also directors. The two contracts entitle the respective shareholders to annual compensation of $320,000 each and other bonuses and perquisites.

The Company leases a 67,000 square foot facility in Watertown, Connecticut and a 22,000 square foot facility in Stamford, Connecticut from a Baker family trust.  The lease in Watertown expires in October 2016.  On September 30, 2010 the Company finalized an amendment to its existing lease in Stamford which extended that lease to September 2020.

Future minimum rental payments under these leases are as follows:

Fiscal year ending October 31,	Stamford		Watertown		Total
2013	$	248,400	$	461,295	$	709,695
2014		248,400		461,295		709,695
2015		248,400		470,521		718,921
2016		*248,400		470,521		718,921
2017		*248,400		-		248,400
2018		*248,400		-		248,400
2019		*248,400		-		248,400
2020		*227,700		-		227,700
Totals	$	1,966,500	$	1,863,632	$	3,830,132
* Rent negotiable, assumes rate of first five years.

The Company’s Chairman of the Board, Ross S. Rapaport, who also acts as Trustee in various Baker family trusts is employed by McElroy, Deutsch, Mulvaney & Carpenter LLP (formerly Pepe & Hazard, LLP) a business law firm that the Company uses from time to time.  During fiscal 2012 and 2011 the Company paid approximately $25,000 and $58,000, respectively, for services provided by McElroy, Deutsch, Mulvaney & Carpenter LLP.