- 8 -
Prior to 1983, Mr. Pace did not have any experience in
growing jojoba, nor did he have any experience in either the
research or development of jojoba.
E. Petitioner’s Investment in San Nicholas, Ltd.
Petitioner was introduced to jojoba by Mr. Pace, who
provided petitioner with a copy of a private placement memorandum
dated October 10, 1983 (see infra “F” and “H”), for San Nicholas
Research, Ltd. (San Nicholas or the partnership).6 Thereafter,
on December 30, 1983, petitioner signed a subscription agreement
and purchased five limited partnership units (a 3.9-percent
interest) in San Nicholas.
The general partner and tax matters partner of San Nicholas
was Alfred M. Clancy.
Petitioner purchased the partnership units pursuant to the
aforementioned private placement memorandum. Petitioner paid
$2,790 per limited partnership unit, or a total of $13,950, for
his five units in San Nicholas. Of this amount, $1,140 per unit,
or $5,700 for 5 units, was paid in cash. The balance, $1,650 per
unit or $8,250 for five units, was payable pursuant to a 10-year
6 Mr. Pace also provided petitioner with a promotional
videotape, which was produced by U.S. Agri, see infra “G”, and
which featured Mr. Pace, that described jojoba as “liquid gold”
and as “the industrial crop of the future”, which would be
cultivated in “some of the most hostile land anywhere”.
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