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NOTES TO FiNANCIAI. STATEMENTS --Continued <br />F£LLSMERE JOINT VENTURE (A PARTNERSHIP) <br />NOTE D --RELATED PARTY TRANSACTIONS <br />During the year ended September 30, 1988 and 1987, citrus revenues from related <br />parties amounted to $12,197,803 and $7,669,413, respectively. It is management's <br />opinion that these sales are at terms considered to be in the normal course of <br />business. <br />At September 30, 1988 and 1987 respectively, the Joint Venture has $1,154,289 and <br />$9,630,816 of investments with Prudential Bache Securities, a wholly-owned <br />subsidiary of Prudential Insurance Company of America. It is management's opinion <br />that these investments are at terms considered to be in the normal course of <br />business. <br />Through February 28, 1987 the Fellsmere Management Company (FMC) (see Note A) was <br />primarily owned by the same principals that own Fellsmere Farms, one of the Joint <br />Venture partners until February 28, 1987. Subsequent to February 28, 1987, FMC was <br />owned by three individuals, none of whom were Joint Venture partners. On December <br />20, 1987 FMC was reorganized and renamed Sun Ag. Inc (the management company). The <br />reorganized company is owned by four individuals, one of whom is a partner in E & S <br />Partnership, a current Joint Venturer. The Joint Venture enters into annual <br />agreements with Sun Ag., Inc. to manage, operate and maintain the assets of the <br />Joint Venture. For the years ended September 30, 1988 and 1987, annual fees of <br />$352,975 and $266,500, respectively were paid to the management company. In <br />addition to management fees paid during the year, the Joint Venture has a liability <br />to the management company, as of September 30, 1988, for an incentive management <br />fee of $1,000,000 based on fiscal 1988 operating results as defined in the <br />management agreement. This agreement expired on September 30, 1988. <br />NOTE E --EMPLOYEE BENEFIT PLAN <br />The Fellsmere Management Company Profit Sharing <br />contribution plan which is comprised of a profit <br />salary savings plan for the benefit of Sun Ag, <br />effective as of January 1, 1984. Federal income <br />the employees are deferred in accordance with <br />Revenue Code. <br />-11- <br />Plan (the "Plan") is a defined <br />sharing plan and a self-directed <br />Inc. employees. The Plan was <br />taxes on amounts contributed by <br />section 401(k) of the Internal <br />