Cactus Wren Jojoba, Ltd., Cecil R. Almand, Tax Matters Partner - Page 11

                                                - 11 -                                                   
            program for the purpose of undertaking research and thereafter                               
            developing a jojoba plantation."  The partners in Hilltop                                    
            Ventures--Peterson, Meinke, Damer, and Almand--were also the sole                            
            shareholders of HTP.  Under the terms of this lease, Mesa was to                             
            pay a rental fee of $450 per acre, per year, for a period of 20                              
            years, starting on October 1, 1982.  Mesa, as lessee, in addition                            
            to conducting a broadly described "R&D Program", was required to                             
            furnish all material, labor and equipment, seed, fertilizer, and                             
            supplies for the farm, maintain all wells and irrigation and                                 
            improvements to the property in working order, pay all utility                               
            charges and insurance costs, and pay for all subcontractors.  The                            
            lessor was required to pay tax and assessments on the premises.                              
                  Concurrently with the execution of the research and                                    
            development agreement between Yuma Mesa and HTP, on December 31,                             
            1982, Yuma Mesa executed an exclusive license agreement with                                 
            Mesa.  This exclusive license agreement granted Mesa "the                                    
            exclusive right to utilize the technology developed for the                                  
            account of the Licensor * * * [Yuma Mesa]," in exchange for                                  
            "royalties * * * payable to Licensor * * * [Yuma Mesa] based upon                            
            cumulative annual gross revenue from sales," of the seeds or                                 
            beans of the jojoba plant.                                                                   
                        d.  Agricultural Investments, Inc.                                               
                  On December 31, 1982, Mesa entered into a management                                   
            contract with AI, a California corporation, to develop the 130                               
            acres leased from Hilltop Ventures as a jojoba plantation                                    




Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011