COMMITMENTS AND CONTINGENCIES	12 Months Ended
May 31, 2013
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	11. Commitments and Contingencies a) On April 5, 2006, the Company's wholly-owned subsidiary, Sky Harvest - Saskatchewan, entered into a Saskatchewan Wind Energy Lease agreement, whereby the lessor granted to Sky Harvest - Saskatchewan the right to use certain lands for development and operation of a wind powered electrical generating facility for the conversion of wind energy into electrical energy. The Company agreed to pay the lessors $2,500 per turbine installed on the land and a 1% royalty on all revenue generated from wind energy on the leased lands. Pursuant to the agreement, the term of the lease shall commence on that date (the "Commencement Date") upon which the Company commences generating and selling electricity through the operation of turbines on the leased lands, and shall end on the 25th anniversary of the Commence Date. The agreement was amended on November 1, 2011. Pursuant to the amendment, in the event that the Commencement Date has not occurred by September 30, 2008, then the Company shall either abandon the lease or pay the sum of Cdn$5,000 per month as a delay rental to keep the lease in good standing up to and including the month in which the Commencement date occurs. The Cdn$5,000 monthly delay rental is only payable when the Company commences generating and selling electricity and will not be accrued until the Commencement Date. . All payments due and owing as of November 1, 2011 shall accrue and be paid in full within 30 days of the Commencement Date. If the Commencement Date has not occurred by December 31, 2016, then the lessors have the right to terminate the agreement upon notice in writing to the Company. At May 31, 2013, the Company has accrued $110,085 of lease payments. b) On April 15, 2009, the Company's wholly-owned subsidiary, Sky Harvest - Saskatchewan, entered into a Saskatchewan Wind Energy Lease agreement, whereby the lessor granted to Sky Harvest - Saskatchewan the right to use certain lands for development and operation of a wind powered electrical generating facility for the conversion of wind energy into electrical energy. The Company agreed to pay the lessors a 1% royalty on all revenue generated from wind energy on the leased lands. Pursuant to the agreement, the term of the lease shall commence on that date (the "Commencement Date") upon which the Company commences generating and selling electricity through the operation of turbines on the leased lands, and shall end on the 25th anniversary of the Commence Date. The agreement was amended on November 1, 2011. In the event that the Commencement Date has not occurred by September 30, 2010, the Company shall either abandon the lease or pay the sum of Cdn$5,000 per month as a delay rental to keep the lease in good standing up to the and including the month in which the Commencement Date occurs. The Cdn$5,000 monthly delay rental is only payable when the Company commences generating and selling electricity and will not be accrued until the Commencement Date. All payments due and owing as of November 1, 2011 shall accrue and be paid in full within 30 days of the Commencement Date. If the Commencement Date has not occurred by December 31, 2016, then the lessors have the right to terminate the agreement upon notice in writing to the Company. At May 31, 2013, the Company has accrued $40,000 of lease payments. c) On February 23, 2009, the Company entered into a consulting agreement with a consultant (the "Consultant"). Pursuant to the agreement, the Consultant provided investor relations services for the Company from February 24, 2009 to July 5, 2009. In consideration for the investor relations services, the Company agreed to pay the Consultant $5,000 per month and to issue 15,000 shares of the Company's common stock. At May 31, 2013, the fair value of the 15,000 shares issuable was $6,750 and is included in common stock subscribed. d) On February 3, 2012, the Company entered into a consulting agreement with a consultant. Pursuant to the agreement, the consultant will introduce the Company potential acquisition and investment opportunities in the energy sector, as well as any related sectors. If the Company completes an acquisition of any interest in any company or assets as a result of the consultant's introduction to investment opportunity, the Company shall pay the consultant a success fee equal to 10% of the value of the transaction in shares of the Company's common stock. The Company may also pay such success fees in cash, or a combination of shares and cash. If the Company completes transactions as a result of the consultant's introductions with an aggregate value of at least $3,000,000, including any concurrent financings, the consultant shall have the option to cause the Company to enter into an employment agreement with him, join the Company's Board of Directors, and be appointed as the Company's President and Chief Executive Officer. The term of the agreement is three years.

COMMITMENTS AND CONTINGENCIES

12 Months Ended

May 31, 2013

11. Commitments and Contingencies

a)   On April 5, 2006,  the  Company's  wholly-owned  subsidiary,  Sky Harvest -

     Saskatchewan,  entered into a  Saskatchewan  Wind Energy  Lease  agreement,

     whereby the lessor granted to Sky Harvest -  Saskatchewan  the right to use

     certain lands for  development  and operation of a wind powered  electrical

     generating  facility  for the  conversion  of wind energy  into  electrical

     energy.  The Company agreed to pay the lessors $2,500 per turbine installed

     on the land and a 1% royalty on all revenue  generated  from wind energy on

     the leased lands.  Pursuant to the  agreement,  the term of the lease shall

     commence  on that date (the  "Commencement  Date")  upon which the  Company

     commences  generating  and selling  electricity  through the  operation  of

     turbines on the leased lands,  and shall end on the 25th anniversary of the

     Commence Date.  The agreement was amended on November 1, 2011.  Pursuant to

     the amendment,  in the event that the Commencement Date has not occurred by

     September 30, 2008,  then the Company shall either abandon the lease or pay

     the sum of Cdn$5,000  per month as a delay rental to keep the lease in good

     standing  up to and  including  the  month in which the  Commencement  date

     occurs. The Cdn$5,000 monthly delay rental is only payable when the Company

     commences  generating and selling electricity and will not be accrued until

     the Commencement  Date. . All payments due and owing as of November 1, 2011

     shall accrue and be paid in full within 30 days of the  Commencement  Date.

     If the  Commencement  Date has not occurred by December 31, 2016,  then the

     lessors have the right to terminate the agreement upon notice in writing to

     the  Company.  At May 31, 2013,  the Company has accrued  $110,085 of lease

     payments.

b)   On April 15, 2009,  the Company's  wholly-owned  subsidiary,  Sky Harvest -

     Saskatchewan,  entered into a  Saskatchewan  Wind Energy  Lease  agreement,

     whereby the lessor granted to Sky Harvest -  Saskatchewan  the right to use

     certain lands for  development  and operation of a wind powered  electrical

     generating  facility  for the  conversion  of wind energy  into  electrical

     energy.  The Company  agreed to pay the lessors a 1% royalty on all revenue

     generated from wind energy on the leased lands.  Pursuant to the agreement,

     the term of the lease shall commence on that date (the "Commencement Date")

     upon which the Company commences generating and selling electricity through

     the  operation of turbines on the leased  lands,  and shall end on the 25th

     anniversary  of the Commence Date. The agreement was amended on November 1,

     2011. In the event that the Commencement Date has not occurred by September

     30,  2010,  the Company  shall  either  abandon the lease or pay the sum of

     Cdn$5,000 per month as a delay rental to keep the lease in good standing up

     to the and including the month in which the Commencement  Date occurs.  The

     Cdn$5,000  monthly delay rental is only payable when the Company  commences

     generating  and  selling  electricity  and will not be  accrued  until  the

     Commencement  Date. All payments due and owing as of November 1, 2011 shall

     accrue and be paid in full within 30 days of the Commencement  Date. If the

     Commencement  Date has not occurred by December 31, 2016,  then the lessors

     have the right to  terminate  the  agreement  upon notice in writing to the

     Company.  At May 31,  2013,  the  Company  has  accrued  $40,000  of  lease

     payments.

c)   On February 23, 2009, the Company entered into a consulting  agreement with

     a consultant (the "Consultant").  Pursuant to the agreement, the Consultant

     provided investor relations services for the Company from February 24, 2009

     to July 5, 2009. In consideration for the investor relations services,  the

     Company agreed to pay the  Consultant  $5,000 per month and to issue 15,000

     shares of the Company's  common stock.  At May 31, 2013,  the fair value of

     the 15,000  shares  issuable  was $6,750 and is  included  in common  stock

     subscribed.

d)   On February 3, 2012, the Company entered into a consulting agreement with a

     consultant.  Pursuant to the agreement,  the consultant  will introduce the

     Company  potential  acquisition and investment  opportunities in the energy

     sector,  as  well as any  related  sectors.  If the  Company  completes  an

     acquisition  of any  interest  in any  company or assets as a result of the

     consultant's introduction to investment opportunity,  the Company shall pay

     the  consultant a success fee equal to 10% of the value of the  transaction

     in shares of the  Company's  common  stock.  The  Company may also pay such

     success fees in cash, or a  combination  of shares and cash. If the Company

     completes  transactions as a result of the consultant's  introductions with

     an  aggregate  value  of at  least  $3,000,000,  including  any  concurrent

     financings,  the  consultant  shall have the option to cause the Company to

     enter into an employment  agreement  with him, join the Company's  Board of

     Directors,  and be appointed as the Company's President and Chief Executive

     Officer. The term of the agreement is three years.

- Definition

The entire disclosure for commitments and contingencies.

+ References+ Details

Sky Harvest Energy Corp. 10-K