Oakcross Vineyards, LTD., Dennis D. Groth, Tax Matters Partner - Page 16

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          Vineyard's $1,653,915 account receivable from Winery as of                  
          December 31, 1990, comprised amounts due for the purchase of the            
          following vintages and varietals of grapes:                                 
                    Cabernet                 Sauvignon                                
          Vintage   Sauvignon      Chardonnay     Blanc     Merlot                    
          1986      $7,311                                  $1,528                    
          1987      45,413                                  10,436                    
          1988      167,513        $10,177             23,218                         
          1989      315,245        229,177     $80,224      49,590                    
          1990      347,070        213,360        90,143    63,510                    
          By the end of 1990, Winery had paid only $60,196 with respect to            
          its 1989 grape purchases, which totaled $734,432, and had paid              
          nothing for its 1990 purchases.                                             
                    Interest Payments by Winery to Vineyards                          
               Vineyards charged Winery interest on the unpaid receivables            
          from Winery, but Winery paid none of that interest during 1982 or           
          1983.  Beginning in 1984, Winery paid Vineyards some of the                 
          interest that had been accruing on Vineyard's receivables from              
          Winery.  Pursuant to addenda to the subordination agreements                
          executed by Vineyards that were dated November 14, 1985, and                
          March 31, 1986, Vineyards was permitted to collect interest from            
          Winery on the receivables due from Winery at the rate of 12                 
          percent.  Vineyards acknowledged, however, that payments of                 
          interest were allowed only to the extent they did not jeopardize            
          Winery's ability to meet its obligations to the Bank of America.            
          Interest payments continued until 1986, when Bank of America                
          required Winery to cease accruing interest on Vineyard's                    





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