Quarter Horse Racing Owners of Ontario Inc.

2010 STAKES CONDITIONS

QUARTER RACING OWNERS OF ONTARIO INC. STAKES PROGRAM

The following conditions shall apply to all stakes races, including trials, run under the auspices of Quarter Racing Owners of Ontario Inc. (QROOI) in 2010. All QROOI Stakes Races are conducted at Ajax Downs, in Ajax, Ontario and fall under the jurisdiction of the Ontario Racing Commission. All participants are bound by the rules of the Ontario Racing Commission and the rules of the American Quarter Horse Association. The following Stakes Conditions have been approved by the Ontario Racing Commission.

1. Submission of payments

Nomination and sustaining payments for stakes races MUST be submitted by the required deadline to the offices of the QROOI, Attention Stakes Coordinator. Applications sent by mail will be received after the deadline if postmarked with the deadline date. Any applications received by mail that have no postmark or have an unreadable postmark on the envelope, will only be accepted until the deadline date. It is suggested that post-dated cheques for all sustaining payments be sent with the nomination. Upon notification to the Stakes Coordinator that a horse is being withdrawn, all cheques covering future payments will be returned to the nominee. Cheques MUST have the horse’s name and race entered, shown on it. All payments must be in Canadian Funds.

2. Withdrawal from Program

Withdrawal from a Stakes race must be done by midnight of the payment due date; verbally and confirmed in writing to the Stakes Coordinator. A stop payment of a cheque used to nominate or enter a horse into the stakes program will not constitute withdrawal from the Stakes Program.

3. Missed payment

Late penalties must be paid when the nomination date is missed or a second sustaining payment is missed. If a sustaining payment is missed, the horse will become removed from the race. The horse can be reinstated by paying triple the amount of the missed payment prior to the due date of the next payment. A returned cheque will be treated the same as a missed payment, with the exception where if a letter of explanation is supplied from the bank, indicating bank error rather than non-sufficient funds as the reason. Late penalties will be accepted at triple the missed payment up to and including the next payment due. At no time will a horse be allowed to miss two consecutive payments.

4. Entry to Finals

Where entry into the finals of a stakes race is based on the results of time trials conducted in advance of the final, the finalists will be selected by the Race Secretary on the basis of time, using one-hundredths of a second. Where two or more horses run the same time, the photo strip will be used. Where two or more horses run the same times in different races, placing shall be drawn by lot by the Racing Secretary in the presence of the affected owners or their representatives. If a tie occurs for the final position, the owners or their representative will attend a draw to determine which horse goes to the final. This draw will be made by the Racing Secretary as soon as it is practical. Entry fees are due and payable at the time of entry. The entry fees for any also eligible horses are due and payable when the horse is assigned a post position.

5. Effect of change in order of finish in a time trial

In the event a horse is placed for interference in a time trial, it shall receive the time of the horse it is placed behind plus one one-hundredth of a second, and shall be eligible to qualify for the finals of the race on the basis of the assigned time.

6a. Horse unable to participate in final (Time Trials)

If a horse has qualified for the final of a Stakes Race through trials, but is unable to participate, the horse is automatically eligible for last place money. If more than one horse scratches, the last money positions will be divided equally among them.

6b. Horse unable to participate in final (No Time Trials)

If a horse has qualified for a Stakes Race but is unable to participate, the next horse with preference (meeting eligibility criteria) will run. Two also eligible horses will be carded in order of preference, and will draw in when a horse scratches. The also eligible horses will be released according to the time set by the Association. In the case where a horse is scratched after the also eligible horses have been released, the scratched horse’s portion of the purse will be redistributed to the remaining field.

7. Time Trials not required

If time trials are not required, the final will run as advertised.

8. Required number of sustained and/or nominated horses

Should any race have less than ten horses nominated, the race will be cancelled and all payments will be returned to the owners. An exception to this requirement may be allowed by the Board of Directors of the QROOI, with approval of the Ontario Racing Commission.

9. Horse declared a non-starter

In the event that the Stewards declare a horse to be a non-starter due to malfunction of the starting gates during a trial, all sustaining and/or nomination payments will be refunded. If a horse is declared a non-starter in the finals, it shall receive last place money.

10. Jockeys’ Fees

Jockeys’ fees for Stakes Finals will be deducted from the purse money earned. Except in the circumstance that the jockey does not attend or withdraws themselves from the mount, jockey fees are due and payable for any horse that entered and declared into a final.

11. Purse Distribution

Purse distribution for Stakes Races will be as follows: 40%, 20%, 10%, 8%, 7%, 5%, 4%, 3%, 2% and 1%. When there are less than 10 horses participating in a Stakes Race, the remaining percentage of purse money will be split proportionately among the participants. Payout of the purses will be made to the Owner (Lessee) of record at the time of the race.

12. Declaring entry

Any horse, which has nominated and sustained to a particular stakes race must declare entry with the race secretary to maintain its eligibility.

13. Definition of a QROOI Stakes Race

A QROOI stakes race is defined as any AQHA/APHA recognized stakes race, as well as any QROOI race run as part of the QROOI Stakes Program.

Purse funds for the Quarter Racing Owners of Ontario Stakes Program are provided by the Ontario Quarter Horse Racing Industry Development Program, as administered by the Ontario Racing Commission. Further details on the Program and the Breeding Program 2010 Criteria can be accessed from the ORC website at www.ontarioracingcommission.ca or by calling (416) 213-0520.

POINT STRUCTURE:

- Category 1 Purses of $50,000 or more

- Category 2 Purses of $20,000 up to $49,999

- Category 3 Purses under $19,999

Under no circumstances will the last place horse receive points. If the jockey has earned a fee, the horse will count as a participant. All horses in a dead heat will receive the points for the position of finish and the subsequent horse or horses will receive points in accordance with the number of horses ahead of them.

Points will be awarded in these categories as follows:

	1st	2nd	3rd	4th
Category 1	10	7	6	5
Category 2	7	5	4	3
Category 3	5	3	2	1

LATE PENALTIES

Late penalties will be accepted at triple the missed payment up to and including the next payment due.
At no time will a horse be allowed to miss two consecutive payments.

DEFINITIONS:

Where eligibility criteria refer to definitions for horse or owner, the respective definition will be as included in the 2010 Program Criteria for the Ontario Quarter Horse Racing Industry Development Program.

ONTARIO FOALED -- Means a foal, recorded in the Program Registry, born in the Province of Ontario out of a mare that is its dam. The mare must have been recorded with the Program Registry prior to Date-of-Foaling in Ontario. Any foal not born from its dam does not qualify as ONTARIO FOALED.

ONTARIO BRED -- Means a foal born in the Province of Ontario, out of an ONTARIO ACCREDITED BROODMARE. Only one foal per ONTARIO

ACCREDITED BROODMARE may be declared to the Program Registry for each birth year.

ONTARIO SIRED -- Means a foal whose sire was an ONTARIO ACCREDITED STALLION in the foal’s conception year.

ONTARIO RESIDENT -- A person who has his permanent home or principal home in Ontario and who resides at that home for no less than 182 days in a calendar year. A Registered stable, farm, corporation or limited partnership, registered with the AQHA as an ownership group, will be considered an ONTARIO RESIDENT, IF:

The stable, farm, corporation or limited partnership is registered with the AQHA, AND
The primary business location for the stable, farm, or limited partnership -- or the registered head office for the corporation -- is in the Province of Ontario, AND
At least one member of the Registered stable, farm, corporation, limited partnership or syndicate is an ONTARIO RESIDENT.

The Corresponding Officer (or designated representative) for a Registered stable, farm, corporation or limited partnership will be required to sign a declaration with the Program Registry which reports the percentage of the ownership group that are ONTARIO RESIDENT(S). Should any dispute or disagreement arise, the person (or entity) bears the onus of proving that they fall within the meaning of ONTARIO RESIDENT.

CANADIAN RESIDENT -- A person who has his permanent home or principal home in Canada and who resides at that home for no less than 182 days in a calendar year. A Registered stable, farm, corporation or limited partnership, registered with the AQHA as an ownership group, will be considered an CANADIAN RESIDENT, IF:

The stable, farm, corporation or limited partnership is registered with the AQHA, AND
The primary business location for the stable, farm, or limited partnership -- or the registered head office for the corporation -- is in Canada, AND
At least one member of the Registered stable, farm, corporation, limited partnership or syndicate is an CANADIAN RESIDENT.

Should any dispute or disagreement arise, the person (or entity) bears the onus of proving that they fall within the meaning of CANADIAN RESIDENT.

Additional details on Program definitions are as recorded in the 2010 Program Criteria, and should be referenced for information on foals of 2007 and earlier years, and horses born from embryo transfer procedures.