The size, scope and structure of Broodmare syndications will vary greatly based on the objectives of those involved in the venture. The rules and regulations of the syndicate will be covered by a Unit Trust Deed.

There will be a bloodstock management agreement between the Syndicate and the appointed Bloodstock Managers (usually a Stud) which will detail the relationship between the two parties and the responsibilities and rights therein. The appointed Bloodstock Managers will have the right to divest and acquire bloodstock within prescribed limits as agreed. The Syndicate will be able to terminate this agreement upon minimum standards not being met.

The Bloodstock Managers will be responsible for all the day to day bloodstock management activities, include the following:

• Assisting with the initial marketing and distribution strategies of the syndicate
• Inspection and purchase of bloodstock
• Management of bloodstock
• Liaising with trainers and other service providers
• Organising member functions i.e.: stable visits, stud visits
• Communicating information to investors

The Bloodstock Managers will be entitled to specific remuneration for their efforts and it is envisaged that success based remuneration will be form a major component of this.

The syndicates will be finite i.e.: all horses to be sold at a point in time, say 6 years. However, at completion, there should be an option to roll a successful syndicate into a new syndicate for a further term.

Information memorandums or relevant PDS’s will be prepared for perusal by interested parties. Prospective purchasers will also receive a Financial Services Guide (FSG).