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propagation, fertilization and watering. Each
experiment shall be conducted in a scientific manner
and closely monitored.
2.4 Results. The plant characteristics in each
area of the plantation and the progress of plant growth
will be recorded. The nature and results of each
experiment conducted in the plantation will likewise be
recorded.
2.5 Conclusion. The R & D Program will be
concluded, and HJI's obligations under this Agreement
fulfilled, on December 31, 1986.
Pursuant to the R & D Agreement, JDP agreed to pay HJI
$360,000 as full compensation for the conduct of the R & D
Program on the 60-acre jojoba plantation, of which amount $85,000
was due upon the signing of the R & D Agreement and the remaining
$275,000 was payable according to the terms of recourse notes to
be delivered to HJI upon the signing of the R & D Agreement. The
R & D Agreement indicated that HJI had allocated $200 per acre of
the contract fee for the purchase of water and the installation
of a water delivery system for the small plantation but that JDP
would pay an additional sum, up to a maximum of $50,000, in the
event that the actual cost of providing water to the small
plantation exceeded $200 per acre. The R & D Agreement stated
that all costs and expenses of the R & D Program were the sole
responsibility of HJI. In addition, it stressed that all
payments due on the Notes were:
required by HJI to enable it to commence and carry out
the R & D Program, and are not in any way conditioned
on HJI's performance under this Agreement. If HJI has
received timely payment and then fails to perform as
agreed, the Partnership may bring suit for damages or
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