THOROUGHBRED RACEHORSE

CLAIMING PARTNERSHIP IV AGREEMENT

Southern California 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 California of which the shareholder is part of Partnership IV 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 may be required to obtain an owner’s license from the State of California Racing Commission. 

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 one-hundred (100) shares. Each share is equal to one percent (1%) ownership. Each horse represents a partnership.
  3. Minimum purchase is just three (3) shares 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 100 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 one percent (1%) of the horse. Minimum purchase is three (3) shares equal to three percent (3%) of the horse. Therefore the total minimum investment is one-thousand, one-hundred and twenty-five dollars ($1125).
  3. Under current California Horse Racing Board rules and regulations partners in a limited liability partnership are not required to hold an owners license. However, each shareholder will have the option to obtain a California Owners License. The current license is one-hundred and fifty dollars ($150) for a three (3) year license. You will also need to supply finger prints to be licensed.
  4. If a partner chooses to obtain a license they need to inform MJ DeVita Stable Management of their desire. For those that request licensure, required forms and finger print cards will be mailed to the partner after the purchase of share(s) and this signed agreement is received and accepted by MJ DeVita Stable Management. We will mail you the forms required and you will register directly with the California Horse Racing Board. A partner can not be licensed until they are a shareholder in a partnership that owns a horse. Therefore, if this is your first California partnership that you are purchasing into with Trans Atlantic Racing Stable you will not be able to get your license until after we claim the horse. If you already have a California Owner’s License you can skip this step.
  5. You will be able to obtain a license by the California Horse Racing Board regardless of where you live. Anyone applying for a license through the mail will receive a paper license. However, any partner who would like to visit the backstretch and barn area of where the partnership horse is located must first visit the California Horse Racing Board’s office at the location of the current meet to have a picture taken.
  6. If at any point the California Horse Racing Board changes their rules and regulations during the period in which this partnership is in effect and requires all to be licensed, any unlicensed partner must be obtain a license in accordance with the California Horse Racing Board decree. Any partner (shareholder) who fails to obtain a license if one becomes required by the California Horse Racing Board will forfeit all rights and claims to their shares, earnings and distributions as stated in this contract. MJ DeVita Stable Management will not purchase the shares of nor will it compensate any partner in any way if the partner fails to obtain a owners license if such license becomes a requirement of the California Horse Racing Board.

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 percentage of any money earned by the partnership for the month relative to the percentage they own in the Partnership IV.
  2. When the partnership horse is sold to or claimed by another stable for equal to or less than the original thirty-two thousand dollars ($32,000) claiming price each of the one-hundred (100) shares will receive one percent (1%) of the total proceeds.
  3. When the partnership horse is sold to or claimed by another stable for an amount larger than the original thirty-two thousand dollars ($32,000), each of the one-hundred (100) shares will receive one percent (1%) of the total proceeds minus ten percent (10%) of the difference between the original thirty-two thousand dollars ($32,000) and the claim or sale price. Example: The horse that the partnership claimed for thirty-two thousand dollars ($32,000) is sold or claimed by another stable for forty thousand dollars ($40,000). The difference between the original claim price and the sale price is eight thousand dollars ($8,000). Ten percent (10%) of the increase in value shall be retained as an incentive bonus for the trainer for improving the partnership’s horse. The remaining thirty-nine thousand and two-hundred dollars ($39,200) is divided equally over the 100 shares.

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 thirty-two thousand dollars ($32,000) for our partnerships.

 HOW WE PURCHASE A HORSE FOR THE PARTNERSHIP

  1. We sell one-hundred (100) shares at three-hundred and seventy-five dollars ($375) each. This gives the partnership thirty-seven thousand and five-hundred dollars ($37,500) 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 thirty-seven thousand and five-hundred dollars ($37,500) covers all the costs including the purchase of the horse, California sales tax, claim insurance which covers only the first twenty-four (24) hours of a claim, 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 one-hundred (100) 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 one-hundred (100) 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 other than the twenty-four (24) hour claim insurance as listed below. Therefore, if the partnership’s horse is no longer able to race, the partnership may lose its entire initial investment.
  2. As part of the share payment, Trans Atlantic Racing Stables will carry twenty-four (24) hour claim insurance on any horse it claims. This insurance is good for just the first twenty-four (24) hours from the time the claim is dropped in the claim box. Insurance will be paid in accordance with insurance policy to Trans Atlantic Racing Stables. Trans Atlantic Racing Stables agrees to distribute one percent (1%) of any monies received from the insurance to each of the one-hundred (100) shares.
  3. 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.
  4. This is a limited liability partnership 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

 

SHARE NUMBERS ASSIGNED TO THIS PARTNER: _____________________

 

SHAREHOLDER PERCENT HELD IN THIS PARTNERSHIP ________________

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