Utah Jojoba I Research, William G. Kellen, Tax Matters Partner - Page 15

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               Throughout the entire time that Pace operated U.S. Agri, he             
          was a member of the International Jojoba Association.  As a                  
          member of the International Jojoba Association, Pace participated            
          in the association's drive to increase the overall annual size of            
          the jojoba crop in order to have a readily available source of               
          supply at a reasonable yet profitable price.  These efforts may              
          have included the sharing of information regarding field tests               
          among growers of jojoba.                                                     
               In the late summer or early fall of 1982, U.S. Agri produced            
          a videotape primarily aimed at potential general partners for                
          jojoba limited partnerships that described jojoba as "liquid                 
          gold" and "the industrial crop of the future".  Pace testified               
          that this videotape was distributed to 400-500 people in the                 
          financial planning community.  Additionally, each general partner            
          of the 12 jojoba research and development limited partnerships               
          serviced by U.S. Agri received a copy of the videotape.                      
               According to Pace, his ultimate objective in establishing               
          U.S. Agri, the laboratory, and the greenhouse, in addition to                
          acquiring the 400 acres in Desert Center, was "to develop two or             
          three dozen super hybrid jojoba plants that could be cloned                  
          and/or xeroxed, if you will, by virtue of the techniques                     
          developed in the lab, for sale to other growers."  According to              
          Pace, the land in Desert Center was necessary in order to be able            
          to identify which of the jojoba plants cultured in the lab would             





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