River City Ranches #4 - Page 80




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          under the second signature he was stated to be signing the note             
          as attorney-in-fact for RCR #6's limited partners.                          
               In connection with the above RCR #6 "Full Recourse                     
          Promissory Note", Mr. Hoyt further signed the names of 17 RCR #6            
          limited partners to another document dated December 31, 1986,               
          entitled "Certificate Of Assumption Of Personal Liability".  This           
          certificate stated that each of the undersigned limited partners            
          thereby agreed to be fully personally liable for all amounts owed           
          under RCR #6's note.                                                        
               RCR #4 and RCR #6 each entered into a sharecrop agreement              
          with Barnes Ranches, pursuant to which Barnes Ranches was to                
          provide all management and was to pay all expenses with respect             
          to a partnership's breeding flock over a 15-year term.  Barnes              
          Ranches further was obligated to replace any partnership ewe that           
          could no longer adequately serve as a breeding ewe with another             
          ewe of equal or better quality to those that partnership had                
          originally purchased.  Also, it guaranteed that there would be an           
          annual 5-percent net increase in the size of a partnership's                
          breeding flock.  In exchange for its services under the sharecrop           
          agreement, Barnes Ranches was to receive all lambs produced by a            
          partnership's breeding sheep, as well as any culls.                         
               The sharecrop agreement further recognized that any                    
          registration papers on a partnership's breeding sheep would be              
          taken out in the Barnes family's name.  However, the sharecrop              






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Last modified: May 25, 2011