21. RELATED PARTY TRANSACTIONS

12 Months Ended

Oct. 31, 2016

Related Party Transactions [Abstract]

21. RELATED PARTY TRANSACTIONS

Directors and Officers

The Baker family group, consisting of three current directors, Peter Baker (CEO), John Baker (Executive Vice President) and Ross Rapaport (Chairman), as trustee, as well as Henry Baker, a former director, together own a majority of Company common stock.  In addition, in connection with the acquisition of Crystal Rock Spring Water Company in 2000, the Company 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, 2016 is $9,000,000.

John Baker and Peter Baker have employment agreements with the Company.  The agreements provide for annual salaries of $320,000 for each and other bonuses and perquisites.  Effective November 1, 2016, new employment agreements were finalized.  See Note 24, "Subsequent Event."

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 2021 and the lease in Stamford expires in September 2020.

Future minimum rental payments under these leases are as follows:

Fiscal year ending October 31,	Stamford		Watertown		Total
2017	$	256,668	$	470,521	$	727,189
2018		256,668		470,521		727,189
2019		256,668		470,521		727,189
2020		235,279		470,521		705,800
2021		-		470,521		470,521
Totals	$	1,005,283	$	2,352,605	$	3,357,888

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 2016 and 2015 the Company paid approximately $27,000 and $65,000, respectively, for services provided by McElroy, Deutsch, Mulvaney & Carpenter LLP.

The Company's Chief Financial Officer, David Jurasek, is husband of Cheryl Jurasek, the Company's Vice President of Human Resources.  During fiscal 2016 and 2015 her compensation, including the value of a Company-provided automobile, was approximately $132,000 each year.