- 8 -
became general partner of jojoba farming partnerships. In 1981,
the Sterling Trust leased the 400 acres it owned to U.S. Agri
(described infra) for jojoba farming operations. The 80 acres
later allocated to Utah I were included in the 400 acres leased
to U.S. Agri.
Utah I was financed through a private placement, as
described infra. The operation was conducted by U.S. Agri,
purportedly with management and supervision by Agri Futures, Inc.
Kellen frequently made the 120-mile trip from his office to
Desert Center to inspect the land allocated to Utah I. As
general partner, Kellen received quarterly progress reports in
the form of correspondence from Pace on behalf of U.S. Agri
regarding the progress on the jojoba plantation. On October 23,
1983, Kellen forwarded one of the progress reports he received
from U.S. Agri regarding the growth of the jojoba plants to Utah
I's limited partners. Although Kellen received additional
progress reports from Pace on behalf of U.S. Agri during 1984, he
did not forward any of these reports to the limited partners of
Utah I. On February 14, 1985, Kellen forwarded two additional
progress reports from Pace on behalf of U.S. Agri to the limited
partners of Utah I.
Pace believed that Utah I's research contract with U.S. Agri
terminated after 4 years, on approximately December 31, 1986.
However, by its literal terms, the R&D agreement expired upon
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