Durham Farms #1 - Page 6




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          DF #1, SGE 82-1, DGE 84-3, SGE 84-5, DGE 86-2, TBS 89-1, TBS 90-            
          1, and Management each maintained its principal place of business           
          in Burns, Oregon.                                                           
          A.  Overview                                                                
               Walter J. Hoyt III (Jay Hoyt) is a general partner of each             
          of the seven cattle-breeding partnerships that are involved in              
          the instant cases.  These seven cattle-breeding partnerships were           
          formed and began operating in the years indicated as follows:               
                              Partnership         Year                                
                              DF #1               1973                                
                              SGE 82-1            1982                                
                              DGE 84-3          1984                                  
                              SGE 84-5            1984                                
                              DGE 86-2            1990                                
                              TBS 89-1            1989                                
                              TBS 90-1          1990                                  

          DF #1, SGE 82-1, DGE 84-3, and SGE 84-5 had each been formed as a           
          California or Nevada limited partnership.                                   
               Jay Hoyt’s father was a prominent breeder of Shorthorn                 
          cattle, one of the three major breeds of cattle in the United               
          States.  In order to expand his business and attract investors,             
          the father had started organizing and promoting cattle-breeding             
          partnerships by the late 1960's.  Before and after the father’s             
          death in early 1972, Jay Hoyt and other members of the Hoyt                 
          family were extensively involved in organizing and operating                
          cattle-breeding partnerships.  From about 1971 through 1992, Jay            
          Hoyt organized, promoted to numerous investors, and operated as a           





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