Utah Jojoba I Research, William G. Kellen, Tax Matters Partner - Page 6

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          partner position.  In November 1982, CFS notified Kellen that he             
          had been selected to serve as the general partner of Utah I.                 
          Shortly thereafter, CFS notified Kellen that the investing group             
          intended to form three additional jojoba limited partnerships and            
          asked Kellen if he would serve as the general partner for these              
          additional limited partnerships.  Kellen agreed and became the               
          general partner of four jojoba research and development limited              
          partnerships, including Utah I.  When he became general partner              
          in 1982, Kellen had no prior experience in the growing of jojoba.            
          At that time, Kellen's knowledge of jojoba was limited to                    
          articles he read in National Geographic and his familiarity to               
          some extent with the experimental jojoba plantations located at              
          the University of California at Riverside.                                   
               Kellen and Pace had known each other since 1975.  Then Pace             
          owned a 96-acre orange grove located across the street from                  
          Kellen's residence in Riverside, California.  Pace wished to                 
          develop the orange grove through a syndication.  After learning              
          that Kellen was a civil engineer as well as an attorney, Pace                
          engaged Kellen to assist him in subdividing the land.  Kellen                
          successfully completed the subdivision of Pace's land in                     
          approximately 1979.  Pleased with Kellen's handling of the sale              
          of the orange grove, Pace remained in contact with Kellen after              
          the sale was completed.                                                      







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