Stephen H. Glassley and Judith Glassley, et al. - Page 37

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          additional nitrogen and phosphate applications did not benefit              
          the jojoba plants on Turtleback I.11  Consequently, HJI                     
          discovered that it would not need to incur costs relating to the            
          application of those additional nutrients to jojoba grown on                
          Turtleback I.  As a result of the jojoba leaf tissue analyses,              
          HJI also learned that the appropriate nutrient levels for a                 
          jojoba plant varied seasonally.  HJI continued the nutrient field           
          testing on the jojoba plants on Turtleback I beyond December 31,            
          1986, the expiration date for the R & D Agreement.                          
               In July 1986, HJI and JDP executed an agreement regarding              
          the option and joint venture agreement in which both parties                
          expressed their consensus that the jojoba growing on Turtleback I           
          could be farmed on a commercial basis and that Turtleback I                 
          should be converted to a commercial jojoba plantation.                      
          Subsequently, on September 11, 1986, Whittaker notified JDP that            
          HJI had exercised its option to convert Turtleback I to a                   
          commercial farm and form Turtleback Jojoba Venture with JDP                 
          pursuant to the option and joint venture agreement.  During 1987            
          and 1988, HJI operated Turtleback I as a commercial jojoba                  



          11   Dr. Eberhardt gave reports on the nutrient tests at various            
          meetings of the Jojoba Growers Assoc.  In addition, during Jan.             
          1988, he presented an article at the seventh international                  
          conference on jojoba, held in Phoenix, Ariz., in which he relied            
          on information gathered from the leaf analyses of jojoba plants             
          grown on the Hyder Jojoba plantations.  As a result, that                   
          information is now being used as a guide or baseline for                    
          determining the health of jojoba plants grown in other parts of             
          the world.                                                                  



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