Utah Jojoba I Research, William G. Kellen, Tax Matters Partner - Page 14

                                        - 14 -                                         

          the trial.  Additionally, no evidence was introduced at the trial            
          to substantiate Pace's testimony regarding their actual                      
          employment by U.S. Agri.                                                     
               Sometime between 1979 and 1981, U.S. Agri allegedly entered             
          into a management contract with Agri Futures, Inc. (Agri                     
          Futures), a California company.  Under this contract, Agri                   
          Futures purportedly was to develop the 400 acres U.S. Agri leased            
          from the Sterling Trust, including the land allocated to Utah I,             
          into jojoba plantations.  Agri Futures was also known as American            
          Jojoba Industries.  U.S. Agri's management contract with Agri                
          Futures is not part of the record in this case.                              
               The sole shareholders of Agri Futures, Gordon Fisher and                
          Bill Rivers, also served as officers and directors of U.S. Agri.             
          As U.S. Agri's subcontractor, Agri Futures provided the physical             
          labor involved in the preparation of the land for farming jojoba             
          and the maintenance of the jojoba plantations.  Pursuant to its              
          management contract with U.S. Agri, Agri Futures purportedly                 
          planted, maintained, and irrigated the jojoba on the land                    
          allocated to Utah I.  Pace testified that employees of Agri                  
          Futures performed all of the work for Utah I that was necessary              
          to follow the plan he developed for Utah I.  Funding for these               
          activities was provided by U.S. Agri pursuant to its arrangements            
          with Utah I, described infra.  No one from Agri Futures testified            
          at the trial.                                                                





Page:  Previous  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  Next

Last modified: May 25, 2011