Oakcross Vineyards, LTD., Dennis D. Groth, Tax Matters Partner - Page 10

                                       - 10 -                                         
               1984           39.6                     60.4                           
               1985           16.3                     83.7                           
               1986           91.8                     8.2                            
               1987           95.6                     4.4                            
               1988           93                       7                              
               1989           100                      0                              
               1990           100                      0                              
               By letter dated September 15, 1982, Mr. Groth informed one             
          of Vineyards' customers for grapes from the Hillview Vineyard of            
          Mr. Groth's long-term plan to start a winery.  The letter further           
          stated that Mr. Groth would need grapes produced by the Hillview            
          Vineyard for that winery and that, for 1983, he wished to sell to           
          the customer only half of the amount of sauvignon blanc grapes              
          specified in the agreement that had been made between the                   
          customer and the previous owner of the Hillview Vineyard, and,              
          thereafter, to take all of those grapes for his own winery.                 
          During 1985, Vineyards entered into a contract with Renaissance             
          Wine Company for the purchase of grapes that would continue from            
          year to year until canceled; if canceled, the parties were                  
          obligated to buy and sell the same amount of grapes at the same             
          price as had been bought and sold during the preceding year.  The           
          contract called for the purchase of 50 tons of grapes at $750 per           
          ton.  Consequently, the buyer was obligated to buy annually 50              
          tons of grapes for at least 2 years.  In a cover letter with                
          respect to the contract dated March 15, 1985, Mr. Groth stated              
          that "$750 per ton is a price that is below our normal selling              
          price and is designed to help you [Renaissance Wine Company]                
          achieve your average sell price of $36/case."                               




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