- 18 - be paid with the execution of the R&D agreement. Subsequent installments of nine payments of $121,941 each, including interest on the unpaid balance at the rate of 7 percent, were to be paid annually starting on July 31, 1983. The final sum of $232,921 representing the balance of the payments at 7 percent and 2 percent of deferred interest not previously paid was to be paid on July 31, 1992. The record does not include evidence concerning actual payment of any of these amounts except for Utah I's 1982 and 1983 tax returns and Pace's testimony that he recovered the amounts he advanced to start U.S. Agri from Utah I funds. The R&D agreement also specified that U.S. Agri was entitled to "retain any and all amounts paid to it by the Partnership * * * [Utah I], whether or not the R&D Program is successful and accomplishes the results contemplated hereunder. * * * [U.S. Agri] does not guarantee that its work will be successful and the Partnership * * * [Utah I] shall have no rights of refund." The R&D agreement further provided that "Any real property and tangible personal property acquired or improved" by U.S. Agri in connection with the research and development program was to remain U.S. Agri's sole property and that "no ownership rights in such property will be transferred to the partnership * * * [Utah I]." The R&D agreement also stated that no income from the jojoba plantation was anticipated during the research andPage: Previous 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Next
Last modified: May 25, 2011