Durham Farms #1 - Page 11




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          managed.  Other cattle-breeding partnerships that Jay Hoyt                  
          organized after 1976 also became partners in Management.  Each              
          cattle-breeding partnership and Management generally entered into           
          a sharecrop agreement similar to those previously entered into by           
          various cattle-breeding partnerships and W.J. Hoyt & Sons.                  
               The Feedlot Co. partnership was composed of certain Hoyt               
          family members and Management.  Among other things, the Feedlot             
          Co. partnership was formed to obtain a line of credit from a                
          commercial lender to finance purchases of feed for the cattle the           
          Hoyt organization managed.                                                  
               Timeshares Breeding Services is another operation that was             
          started by the Hoyt organization around the mid-1980's.  It                 
          arranged leases of bulls ostensibly owned by the Timeshares                 
          cattle-breeding partnerships the Hoyt family had organized and              
          promoted to numerous investors.  Unlike the earlier cattle-                 
          breeding partnerships, which typically owned breeding cows or               
          heifers, the Timeshares partnerships owned breeding bulls.  These           
          breeding bulls typically would be leased to owners of commercial-           
          grade cattle herds under the borrow-a-bull program Timeshares               
          Breeding Services conducted.                                                
          B.  Changes in the Hoyt Organization’s Cattle Management and                
          Record-Keeping Practices                                                    
               By at least the early 1980's, the Hoyt organization’s cattle           
          management and record keeping practices changed dramatically.               
          These changed management and record-keeping practices continued             





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Last modified: May 25, 2011