Note 13 - Commitments and Contingencies

9 Months Ended

Sep. 30, 2013

Notes

Note 13 - Commitments and Contingencies

NOTE 13 – Commitments and Contingencies

In June 2013, as part of its acquisition of the Shai Hills lease, the Company issued 500,000 shares of common stock, and assigned a carried interest, in the Shai Hills property, of two and one-half percent (2.5%) of net farm operations revenue.  The Company has agreed to issue 500,000 shares of common stock, and the same carried interest in another property, if it is able to negotiate and consummate a lease before June 30, 2014.

Mr. Allan Kronborg was elected to serve as the Company’s Chief Executive Officer on August 19, 2013 and Mr. Robert Bench agreed to continue serving as President and Chief Financial Officer. The Company entered into employment agreements with Mr. Kronborg and Mr. Bench effective October 1, 2013. The contracts with Mr. Kronborg and Mr. Bench were for periods of one year and three years respectively. Under terms of the contract they will each receive an annual salary of $240,000, of which 50% will be paid monthly and 50% will be accrued until such time as the Company’s operations are cash flow positive.