THOROUGHBRED RACEHORSE

CLAIMING PARTNERSHIP V AGREEMENT

Southern Florida Racing Circuit

 

The agreement is between MJ DeVita Stable Management and

 

_____________________________________, shareholder signed below.

 

The purpose of this agreement is to set forth the terms under which MJ DeVita Stable Management will manage a Thoroughbred Racehorse Claiming Stable called Trans Atlantic Racing Stables located in and raced in Southern Florida of which the shareholder is part of Partnership V of Trans Atlantic Racing Stables. This agreement also sets forth the requirements to be a shareholder.

 

 

WHO IS ELIGIBLE TO BE A SHAREHOLDER

  1. You can live anywhere in the world and be a partner in one of our racehorses. However, you must be able to obtain an Thoroughbred Owners License from the State of Florida Division of Pari-Mutuel Wagering. 

PARTNERSHIP SHARES

  1. We are a simple limited liability partnership that brings together people throughout the world to be part owners in a thoroughbred racehorse.
  2. For each horse partnership there are fifty (50) shares. Each share is equal to two percent (2%) ownership. Each horse represents a partnership.
  3. Minimum purchase is just one (1) share in a horse partnership. The maximum purchase is ninety-five (95) shares in a horse partnership.

D. An owner can own shares in as many different horses as they chose.

FINDING A HORSE FOR THE PARTNERSHIP

  1. Once all 50 shares are sold and paid for the training and management team will choose a horse to claim.
  2. Each shareholding partner will be notified a minimum 24 hours before a possible claim.
  3. If the claim is successful, the partnership now owns a horse of which you are a part owner.

 COMMUNICATION WITH PARTNERS

  1. To insure that each partner enjoys his or her experience as a racehorse owner, we understand that communication is so important.
  2. Each partner will have an open line of communication with the manager of the training and management team.
  3. E-mail will be sent out at least three times of week detailing your horse’s activity.
  1. We will also establish a group forum for each partnership, where partners from around the world being brought together by the experience of sharing a race horse can get to know each other, share ideas, etc.
  2. No partner is obligated to participate in any of the forum activity. If you choose not to that is your right. However, for those that choose to participate we ask that you be respectful to all while expressing your views.

 COSTS TO YOU BECOME A SHAREHOLDER/OWNER

  1. The first cost will be your purchase of your shares in the horse partnership.
  2. Each share costs only three-hundred and seventy-five dollars ($375). Each share represents two percent (2%) of the horse.
  3. Each shareholder will need a Florida Owners License. The current license is $40 per year plus a one-time fee of $34 for finger print cards. After you purchase your share(s) and return this signed agreement we will mail you the forms required or you may register directly with the Florida Division of Pari-Mutuel Wagering.
  4. A partner can not be licensed until they are a shareholder in a partnership that owns a horse. Therefore, if this is your first Florida partnership that you are purchasing into with Trans Atlantic Racing Stable you will not be able to get your license after we claim the horse. If you already have a valid Florida Owners License you can skip this step.

TRAINING & MANAGEMENT COSTS

  1. There are no monthly costs or any out of pocket expenses to you.
  2. When the partnership’s horse earns purse money, seventy percent (70%) of the money earned is retained for expenses. This seventy percent (70%) pays for all the bills. If the horse doesn’t earn money, the training and management team pay all the bills. You are never responsible for any of these bills. That is why it is important for the trainer and management team to pick good horses to claim and race them where they will make money because if the horse doesn’t earn the trainer and management team have to pay for the bills out of their pocket.
  3. Because the training and management team are responsible for all expenses, they will choose which horse is claimed for the partnership and decide which races to enter.

PURSE AND OTHER MONEY PAYMENTS TO OWNERS

  1. While seventy percent (70%) of the horse’s earnings are retained for expenses. The remaining thirty percent (30%) of any earnings is paid out every thirty (30) days to the partnership owners. Each share will receive a 2% of any money earned by the partnership for the month. You will receive 2% for each share you own in the partnership.
  2. When the partnership horse is sold to or claimed by another stable each share will receive 2% of the proceeds received.

CLASS OF HORSE WE RACE

  1. Thoroughbred racing is broken up into different race classes these being stake races allowance races and claiming races. In stake and allowance races no horses are for sale, however in a claiming race every horse entered is for sale for a price listed prior at the time of entry. We race claiming horses.
  2. We look to claim horses that are entered for the sale price of sixteen thousand dollars ($16,000) for our partnerships.

 HOW WE PURCHASE A HORSE FOR THE PARTNERSHIP

  1. We sell fifty (50) shares at three-hundred and seventy-five dollars ($375) each. This gives the partnership eighteen thousand and seven-hundred and fifty dollars ($18,750) for a racehorse and related expenses.
  2. Our training and management team is always looking for the “right” horse for the partnership. Remember the training and management team has the risk of paying all the bills if the horse doesn’t earn money. So they cannot afford to make many mistakes. Once that horse is found the trainer will put in a claim before the horse races. Sometimes there is more than one claim entered for a horse. When this happens the first claim drawn from the box owns the horse.
  3. The eighteen thousand and seven-hundred and fifty dollars ($18,750) covers all the costs including the purchase of the horse, Florida sales tax, administration to set-up partnership, fees associated with setting up the partnership, accounting and tax form (K-1) reporting to each partner.

WHEN DOES THE PARTNERSHIP END

  1. Each fifty (50) shares sold is used to claim a horse and form a partnership. The partnership ends when the horse is sold, claimed by another person or for some reason the horse cannot race any longer.
  2. At that point any money made by selling or having the horse claimed will be distributed equally amongst the fifty (50) shares along with any partner share purse earnings that have not been distributed to date.
  3. A shareholder of an ended partnership can choose to reinvest any monies received from an ended partnership in any other partnership that has available shares. However, there is never an obligation to reinvest any monies received.
  1. If you are partners in more than one horse, only the one partnership, in which the horse was sold, claimed or otherwise couldn’t any longer race will be ended. All other partnerships with horses will still be in effect.

RISK OF SHAREHOLDER

  1. The shareholder risk is limited to their initial investment in the partnership. The shareholder must understand that there are certain risks in thoroughbred racing including but not limited to injury to a horse that they may no longer race or sometimes-even death. This partnership will not carry insurance on any horse they claim. Therefore, if the partnership’s horse is no longer able to race, the partnership may lose its entire initial investment.
  2. The shareholder agrees that MJ DeVita Stable Management, Trans Atlantic Racing Stables, their employees, associates, representatives nor the trainer will not be held liable for any injury, death, sickness or any other reason that the horse is unable to race.
  3. This is a limited liability partnership you are only liable for their initial investment in this partnership.

TAX RESPONISIBLTY

  1. Each shareholder will be responsible for any taxes due to their local, county, provincial, state or federal governments or any other taxing authority to which the shareholder is responsible.

 

I have read, understand and hereby agree to abide by the above terms set forth in this agreement.

 

PARTNER/SHAREHOLDER

 

NAME______________________________________________________________

 

ADDRESS___________________________________________________________

 

CITY____________________________________ STATE/PROVINCE___________

 

ZIP CODE/POSTAL ZONE_______________________

 

SHAREHOLDER SIGNATURE_____________________________________________

 

DATE SIGNED________________________ NUMBER OF SHARES PURCHASED ______

 

 

ACCEPTED BY:

 

_________________________________ _________________________

MJ DeVITA STABLE MANAGEMENT    DATE

 

 

SHAREHOLDER PERCENT HELD IN THIS PARTNERSHIP ________________

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