- - - - - - - - - - - - TERMS & CONDITIONS - - - - - - - - - - - -

(i) Caloona Racing confers on the shareholder (for the duration of his/her membership) certain benefits associated with Caloona Racing’s ownership of horses currently in training. The benefits are as follows;

an opportunity to follow every one of the horses owned by Caloona Racing,

to share Caloona Racing’s grey and white colours,

Where available, to receive a share in any of the prize money won by Caloona Racing’s horses in accordance with the terms and conditions therein.

(ii) Prize money won by the horses during the season, expiring no later than 31 December 2008 or sooner, will be distributed equally amongst the shareholders at the end of the year following deduction of racing expenses. There will be no pro rata distribution should any shareholder cease to be a member before that period. There can never be any guarantee of any future level of prize money given that this is dependant on how well the horses perform on the racecourse.

(iii) Membership is primarily an entertainment. It is not an investment opportunity and should not be regarded as such.

(iv) If any shareholder chooses not to continue with the monthly subscription, the membership shall expire at the end of the month in which the last full payment is received.

(v) The sum distributed to shareholders per specific race is determined by the relative net total paid to Caloona Racing by Weatherbys. The only additional deductions from race prize money are costs relating to a race outside of the United Kingdom or any race where an entry supplement is paid. In all circumstances, the monthly subscription fee is not subject to any additional requests for payment in relation to the keeping, training and racing of the racehorses, no matter what costs Caloona Racing may incur.

(vi) When Caloona Racing has a runner, a telephone information line (normal BT – not a premium rate) will endeavour to keep shareholders up to date with trainer information regarding the winning chances of the horse and this information must not be conveyed by shareholders to other people.

(vii) In view of the unpredictable nature of the industry, no specific guarantee can be made or given in any respect.

(viii) All decisions relating to the horses, trainers’ administration and general management shall be vested in the racing manager.

(ix) Membership is for personal use only and cannot be used for any commercial purpose.

(x) Shareholders must be aged 18 or over.xii)

(xi) It is understood by the shareholder that;

Full legal and equitable title of the horses referred to in paragraph (i) above and all such other horses acquired by Caloona Racing from time to time remains at all times with Caloona Racing.

At no time does the shareholder have a legal or equitable interest in any one or more of the horses referred to above and

All rights conferred to the shareholder by Caloona Racing are personal to the shareholder alone and may not under any circumstances whatsoever be gifted, sold, assigned, leased from part of a loan, offered or granted as security to any third parties.

(xii) Each fully paid up shareholder shall be entitled to a complimentary free pass every time any of Caloona Racing’s horses run. Such passes are not transferable.

(xiii) In the event that, due to health and safety regulations, the number of shareholders with access to the paddock and pre saddling area are restricted, a ballot shall take place to allocate passes. Those shareholders that have not received such passes previously will be given preference.

(xiv) Shareholders shall be entitled to invite and bring guests, free of charge, to all hospitality events and open days, numbers may be restricted.