Commitments, Contingencies and Other Matters

6 Months Ended

Jun. 30, 2011

Commitments, Contingencies and Other Matters [Abstract]

Commitments, Contingencies and Other Matters

6. Commitments, Contingencies and Other Matters

RJR Litigation:

There has been no change in the status of this contingency since December 31, 2010.

Virginia Sales and Use Tax Assessment:

On July 14, 2011 the Company filed a complaint in the Circuit Court for Mecklenburg County, Virginia seeking a determination that the purchase of the Company’s curing barns was exempt from Virginia sales and use tax and an abatement of all taxes and interest assessed against the Company by Virginia’s Commissioner of Revenue. The Commonwealth of Virginia filed an answer to the complaint on July 29, 2011.

Employment Contracts

The Company entered into amended and restated executive employment agreements on March 14, 2011, with Jonnie R. Williams, Sr., the Company’s Chief Executive Officer, Paul L. Perito, Esquire, the Company’s President, Chief Operating Officer and Chairman of the Board and Dr. Curtis Wright, IV, Rock Creek’s Senior Vice President for Medical/Clinical affairs. Additional information relating to these executive employment agreements can be found in Item 9B, Other Information, of the Company’s Annual Report filed with the SEC on March 16, 2011.

Commitments

The Company has commitments totaling $781 thousand as of June 30, 2011 for normal operating expenses.