Stephen H. Glassley and Judith Glassley, et al. - Page 42

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          cultivate those seeds.  HJI activities did not result in any                
          patentable technology, nor was any patentable technology expected           
          to be developed from those activities.  JDP had no right under              
          any of the various agreements entered into during 1981, or                  
          amendments thereto, to share in any profits from Turtleback I               
          before January 1, 1987, following the formation of Turtleback               
          Jojoba Venture.                                                             
               During 1988 through 1992, the Hyder Jojoba plantations                 
          produced substantial amounts of jojoba seed.  During 1987, HJI              
          harvested 76,848 pounds of jojoba seed from 942 acres of jojoba             
          plants.  During 1988, it harvested 354,615 pounds of jojoba seed            
          from 1,162 acres.                                                           
               As of the date of trial, however, a stable market for jojoba           
          seed or oil had not evolved and demand for the jojoba seed did              
          not expand to the extent expected.  For some products, less                 
          expensive synthetic substitutes for jojoba oil were developed               
          that adversely affected the demand for jojoba seeds.                        
          Consequently, prices for jojoba seeds and oil have fallen.  In              
          May or June 1993, Holdings cut off irrigation to the jojoba                 
          plants because it had insufficient cash flow to continue                    
          operations.  As a result, as of the date of trial, the income               
          potential for Turtleback I was small.                                       
               None of the JDP limited partners ever have recovered their             
          initial investment in JDP.  As of the date of trial, the limited            
          partners continued to hold their interests in Holdings.                     




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