Farmer Brothers Company (FARM)

Note 10.  Commitments and Contingencies

        The Company incurred rent expense of approximately $1,513,000, $914,000 and $907,000 for the fiscal years ended June 30, 2008, 2007 and 2006, respectively, and is obligated under leases for branch warehouses. Some leases have renewal options that allow the Company, as lessee, to extend the lease. The Company has one lease with a term greater than five years, that expires in 2018 and has a 10 year renewal option. The Company also has operating leases for computer hardware with terms that do not exceed four years.

        Future minimum lease payments for future fiscal years are as follows:

        The Company is a party to various pending legal and administrative proceedings. It is management's opinion that the outcome of such proceedings will not have a material impact on the Company's financial position, results of operations, or cash flows.

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Note 10.  Commitments and Contingencies

        The Company incurred rent expense of approximately $1,513,000, $914,000 and $907,000 for the fiscal years ended June 30, 2008, 2007 and 2006, respectively,
and is obligated under leases for branch warehouses. Some leases have renewal options that allow the Company, as lessee, to extend the lease. The Company has one lease with a term greater than five
years, that expires in 2018 and has a 10 year renewal option. The Company also has operating leases for computer hardware with terms that do not exceed four years.

        Future
minimum lease payments for future fiscal years are as follows:

        The
Company is a party to various pending legal and administrative proceedings. It is management's opinion that the outcome of such proceedings will not have a material impact on the
Company's financial position, results of operations, or cash flows.

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HREF="#bg13501a_main_toc">Table of Contents

Note 9. Commitments and Contingencies

The Company incurred rent expense of approximately $914,000, $907,000 and $779,000 for the fiscal years ended June 30, 2007, 2006 and 2005, respectively, and is obligated under leases for branch warehouses. Some leases have renewal options that allow the Company, as lessee, to extend the lease at the Company’s option for one or two years at a pre-agreed rental rate. The Company also has operating leases for computer hardware with terms that do not exceed three years.

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Future minimum lease payments for future fiscal years are as follows:

The Company is a party to various pending legal and administrative proceedings. It is management’s opinion that the outcome of such proceedings will not have a material impact on the Company’s financial position, results of operations, or cash flows.

Note 10. Commitments and Contingencies

The Company incurred rent expense of approximately $907,000, $779,000 and $753,000 for the fiscal years ended June 30, 2006, 2005 and 2004, respectively, and is obligated under leases for branch warehouses. Some leases have renewal options that allow the Company, as lessee, to extend the lease at the Company’s option for one or two years at a pre-agreed rental rate. The Company also has operating leases for computer hardware with terms that do not exceed three years.

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Future minimum lease payments for future fiscal years are as follows:

The Company is a party to various pending legal and administrative proceedings. It is management’s opinion that the outcome of such proceedings will not have a material impact on the Company’s financial position, results of operations, or cash flows.