Stephen H. Glassley and Judith Glassley, et al. - Page 13

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          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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