- 13 -
year for 1993 through 1998, and $25,000 per year thereafter until
termination of JDP. Furthermore, the general partner would be
reimbursed for any costs he or his affiliates incurred on behalf
of the partnership, including organizational and offering
expenses, accounting and other services, and operational
expenses.
The offering further indicated that if the minimum number of
partnership units were sold and 160 acres were planted, HJI would
receive a fee of $960,000 ($250,000 in cash at execution of the
agreement and the balance payable in 1982 through 1985), while if
the maximum number of partnership units were sold and 464 acres
were planted, HJI would receive a fee of $2,784,000 ($764,000 in
cash in 1981 and the balance payable in 1982 through 1985). The
offering, however, cautioned that:
The Partnership will be funded with contributions of
not less than $1,100,000 nor more than $3,250,000. The
size of the R & D Program will be affected by the
amount of funds at the Partnership's disposal. If the
Partnership receives only the minimum amount of
proceeds it will be able to develop a 160 acre
experimental jojoba plantation and will have a reduced
ability to conduct the degree of research and
experimentation respecting propagation, watering and
fertilizing techniques it otherwise would do and to
complete research and experimentation on a larger seed
population, all of which, consequently, may reduce the
Partnership's chances of developing a superior jojoba
plant strain. Such a result would increase the risks
associated with the venture. If only the minimum or
near minimum number of Units is sold, the Partnership
will have to pay higher Organization and Offering
Expenses per Unit than if it received the maximum or
near maximum amount of proceeds from the sale of Units.
* * * The number of acres under the R & D Program will
increase in accordance with the size of the offering
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