Utah Jojoba I Research, William G. Kellen, Tax Matters Partner - Page 17

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          research contractor.  The R&D agreement, along with other                    
          documents, was sent by CFS to Kellen at his law office on                    
          December 31, 1982, in a last minute rush to execute and file the             
          documents before the end of the year.  Pursuant to directions                
          Kellen received from CFS, he notified the notary at his law                  
          office to be on "standby" and waited for the courier to arrive               
          with the documents.  Upon the arrival of the courier, Kellen                 
          quickly signed the documents and had them notarized before                   
          returning them to the courier.                                               
               The terms of the R&D agreement entered into between U.S.                
          Agri and Utah I specified that U.S. Agri was "to use its best                
          efforts to develop a jojoba plantation in the vicinity of Desert             
          Center, California, at a specific location to be selected by * *             
          * [U.S. Agri] to be used to conduct research on the                          
          domestication, commercial cultivation, planting and irrigation               
          techniques, weed, disease and insect management, and harvesting              
          of the jojoba plant.  Said plantation to be eighty (80) acres."              
          The 80 acres was further described in the R&D agreement as                   
          follows:                                                                     
               The plantation will be located within the larger tract                  
               of land described as follows: the Southeast quarter of                  
               the Northwest quarter and the Southwest quarter of                      
               Section 16, Township 5 South, Range 16 East, San                        
               Bernardino Base and Meridan.                                            
               Under the R&D agreement, Utah I agreed to pay U.S. Agri a               
          total of $1,298,627, plus interest, $423,428.52 of which was to              





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