Crowning Glory Thoroughbreds, LLC
Sample Racing Partnership Agreement
For the purposes of this agreement, Crowning Glory Thoroughbreds, L.L.C. shall be referred to as CGT.

1. (Name of Partnership) is a (Name of State/Country) partnership involving the purchase of a two year old in training.
2. There are a grand total of (amount of shares) full shares (percent interest) in this Partnership.
3. No other CGT horses or assets are involved in this partnership.
4. Each full share has a cost of (insert dollar amount).
5. There is no guaranteed return on investment. Thoroughbred racing generally involves a high risk.
6. There shall be no refunds. This is for the protection of all partners.
7. CGT in regards to this partnership shall be considered the management team and shall represent the entire management interest.
8. This partnership begins on (date) and concludes when the horse (name of horse) is sold, retired, or ends his/her racing career for any reason.
9. In the event that CGT chooses to sell the horse (name of horse), partners will retain exclusive first right to purchase the horse. Upon notification, partners will have 5 days to notify CGT of the intention to buy the horse.
10.  In the event that more than one of the partners chooses to purchase the horse, an auction will commence. The highest bidder shall be awarded the horse.
11.  CGT maintains sole exclusive right to operate the management of the horse without any interference from the partner(s).
12.  CGT maintains sole exclusive authority for all decisions to sell.
13.  CGT maintains sole exclusive authority as to when and where to enter.
14.  CGT maintains sole exclusive authority to make all decisions required in the day to day management of the horse.
15.  At the time of purchasing the horse, CGT shall receive a 5% commission, as well as a 10% equity interest including, but not limited to, 10% of all purses won by the horse, as management compensation.
16.  CGT shall establish and maintain a bank account with an FDIC insured commercial bank.
17.  In the event there are any unused Operation funds at the conclusion of the partnership, they shall be returned 100% pro rata to all of the limited partners.
18.  In the event of an untimely death of a partner, his/her share shall revert to the estate or the designated beneficiary.
19.  The limit of liability to CGT shall be no greater than that of the limited partners at the time of purchase, less any distributions received by the partners.
20.  CGT shall be held harmless and indemnified for any and all claims and/or litigation.
21.  All partners reserve the right to sell their Interest(s) at any time. The new assignee must abide by the terms of this agreement. The selling partner(s) must notify CGT in writing before making any sale. The Limited Partners will have exclusive right for 7 days to match the price and purchase the interest(s). If more than one partner elects this option, they may either agree to split the interest, or an auction will be held at which point the highest bidder will be awarded the right to purchase the interest(s).
22.  CGT shall notify the partner(s) on a best attempt basis, most likely email, within 2 days of the horse being scheduled to race.
23.  If required, the Partner(s) must, at his/her expense pay to be individually licensed or pay State or Partnership fees.
24.  The Partner(s) is required for the entire life of this agreement, to contribute additional funds for expenses. Any shortfalls will not be the responsibility of CGT. If after 3 notices the funds have not been received, the Partner acknowledges that he/she has forfeited his interest in the horse, but is still liable for the funds.
25.  CGT shall provide the Partner(s) a K-1 on or before March 1st 2009.
26.  Partner(s), upon notification, shall have exclusive right to enroll in the next Syndicate for 14 days prior to it being offered for sale to the general public.
27.  Should a situation occur not covered by this agreement, CGT maintains sole exclusive authority to adjudicate any disputes in a customary and reasonable manner.