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net income shall be distributed by the Administrative Manager to the Co-Owners on a monthly
basis. It is further understood that the Administrative Manager may retain reasonable amounts in
order to meet future expenses of the Co-Ownership.
6. EXPENSES
. The expenses for management, maintenance and upkeep of the
Colt, including, but not limited to, all expenses incurred for board, training, transportation,
racing, veterinary treatment, farriers, grooms, equipment and any and all other expenses arising
from or incident to the maintenance and upkeep of the Colt shall be borne by each of the Co-
Owners in accordance with their percentage ownership interest. Administrative Manager shall
invoice, as needed, the Co-Owners as to their respective share of expenses on such basis as said
Administrative Manager determines to be reasonably necessary in order to plan for and properly
pay all expenses. Each Co-Owner shall pay such invoices within seven (7) days of receipt. In
the event such invoices shall not be paid on a timely basis, for whatever reason, the other Co-
Owners may, after consultation with Administrative Manager, proceed to collect such account,
or may proceed to pay same and reduce such defaulting Co-Owner's ownership interest in the
Colt, in a manner proportionate with the amount of expenses paid as compared to the value of the
Colt as determined at that time by the Administrative Manager.
It is further agreed that no personal expenses of any Co-Owner or the
Administrative Manager, including, but not limited to, expenses incurred by Co-Owner or
Administrative Manager for travel, entertainment, food or lodging, relating to the training or
racing of the Colt will be charged to or reimbursed by the Co-Ownership.
7. TROPHIES
. Ownership of trophies or non-monetary prizes or awards earned by
the Colt will alternate between the Co-Owners on such basis as may be reasonably equitable,
including drawing lots, as shall be determined appropriate by Administrative Manager.