Dale A. Rinehart and Jeana L. Yeager, f.k.a. Jeana L. Rinehart, et al. - Page 6




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          Tulsa, Oklahoma, and Houston, Texas.                                        
               Mr. Rinehart erected a promotional sign outside the front              
          entrance of the Campbell ranch.  The sign had the horse breeding            
          activity’s phone number and advertised his two premier stallions.           
          It also had a fiberglass horse on the top of it that was painted            
          to match the color of one of his premier stallions.                         
               Mr. Rinehart had a business plan for the horse breeding                
          activity.  Instead of relying on young stallions that did not               
          have established reputations and attempting to build a name for             
          them, as in the initial horse activity, Mr. Rinehart purchased              
          higher quality stallions with established breeding records that             
          matched up to the bloodlines/lineages in his broodmares.  He bred           
          these horses to one another, rather than using outside stallions,           
          and also bred his stallions with outside mares.                             
               At the time he purchased the Campbell ranch, Mr. Rinehart              
          purchased a champion cutting horse stallion, named Smooth Herman,           
          as the foundation for the horse breeding activity.  Smooth Herman           
          had sired several champion offspring and had won several cutting            
          horse champion titles.                                                      
               Mr. Rinehart planned to breed Smooth Herman daughters to a             
          son of Doc Bar.8  Crossing a Doc Bar son with a Smooth Herman               




               8  Doc Bar was a prominent horse in the cutting horse                  
          industry.  He was the number one paternal grandsire and number              
          two maternal grandsire of all time.                                         




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