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cultivation of jojoba plants and could conduct research and
experimentation work relating to the scientific development of a
plant strain with fast, hardy growth characteristics and high,
stable seed yields, which could be planted, grown, and harvested
in a commercially feasible manner. The R & D Agreement also
stated that JDP anticipated that HJI would conduct such research
and experimentation work. In the R & D Agreement, HJI agreed to
use its best efforts to carry out the research and development
program (R & D Program) described below:
2. Description of Program. The R & D Program to
be conducted by HJI, on the terms and subject to the
conditions and payments set forth in this Agreement,
shall consist of the following:
2.1 Experimental Plantation. HJI will acquire
the ownership or use of such land, buildings,
machinery, equipment and other property, and will
provide all personnel and materials, necessary to
develop and establish an experimental jojoba plantation
(the "plantation"). The plantation shall consist of 60
acres and shall be located on a site selected by HJI in
the Hyder Valley area of Yuma County, Arizona. The
site of the plantation may be purchased or leased from
an affiliate of HJI.
2.2 Plant Strain. HJI will conduct original
research into a particular jojoba plant strain. It
will then select both propagating seeds and plant
cuttings for planting and cultivation in controlled
areas of the plantation. The growth characteristics of
the plants will be closely observed, and replacement
will be made if and when HJI determines that it is
appropriate to the experimentation process and
economically feasible.
2.3 Cultivation Techniques. The plantation will
be divided into separate areas, with each area
subjected to various forms of experimental husbandry.
The variations will include research and
experimentation in soil conditions, methods of
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