1

THE MISSION

THE FINANCIALS

Brilliant Racing, LLC, was established by racing fans for racing fans. Our goal is to make horse ownership fun, interactive and affordable, and to collect a few winner’s circle photos along the way!

From handicapping to horsemanship, we’ve assembled a team of diverse, experienced, bright young minds who understand every aspect of the game and the realities that go along with it. We pride ourselves on open communication and honesty. We are straight shooters.

The backstretch at a racetrack is a magical place. Grab a cup of coffee, come hang out at the barn, give our horses a pep talk and join us on the rail while we watch them train. It’s tough to explain until you’ve done it, but there’s no feeling like winning a race with a horse you have a personal connection to. Brilliant Racing encourages camaraderie within the partnership. We’re all in this together, so let’s maximize the experience!

At this level, owning horses should be approached as disposable income entertainment, not as a financial investment. There is no exact science to this and horses are fragile animals. There are no guarantees of success, but we are confident in our abilities and promise a ton of fun and fond memories along the journey.

Units will be offered in $2,500 increments with a target, but not limited to, $250,000 (100 units). In addition to the cost of the horses, we are building in one full year’s worth of expenses (training, veterinary, administrative, insurance, etc.) into the partnership. We will provide full disclosure within the partnership agreement as well as quarterly financial statements. This method will allow for a patient approach and for our 2-year-olds to have ample time to develop. After the year is up, the status of the partnership will be evaluated, and the managing partners will determine how to proceed. For a more detailed explanation, refer to our FAQ.

In addition to administrating, Joe Kristufek and Brandon Stauble will serve as racing managers and communicate directly with the trainers. Natalie Gils will spearhead our website and social media presence, keeping partners engaged and up-to-date with stable information.

BRILLIANT(adj.) Very bright and radiant. Exceptionally clever or talented.

Maybe you’ve gotten a taste of horse ownership in the past or have thought about it and just haven’t pulled the trigger. This is your opportunity to get in on the ground floor with a horse racing partnership that strives to be brilliant on every level.

At Brilliant Racing, we will put ourselves in position to succeed, enjoy the journey and make some amazing memories along the way!

2

Unlike most racing stables who attempt to make a profit on their venture regardless of results and profitability, the members of our management team put together Brilliant Racing to enhance our own experiences in the game. Our time is valuable, and we will be marginally compensated for it, but for us, this venture is not about making money, just memories. We promise to be 100% financially transparent.

THE STRATEGYIn this first partnership, the goal is to obtain two or three horses. Although 2-year-olds in training are the priority, we understand that they may take time to develop, so we also want to keep the partnership engaged by claiming a horse. The horses will be based year-round in Kentucky and in New Orleans. Based on the conditions they fit and the purses being offered, we expect to compete at Churchill Downs, Keeneland, Indiana Grand, Fair Grounds, Arlington, Ellis Park, Kentucky Downs and If we’re good enough to run in the Hopeful at Saratoga, we’ll be there!

• We are not going to force it. We know the game, patience is one of our strengths. We’re not going to buy or claim a horse just for the sake of doing so. All of our potential purchases will be well thought out and extremely well researched in every area.

• Because of their residual value, our preference at the sales will tilt toward fillies. That being said, we will not hesitate to buy the “right” colt.

• For the same reason, we are also partial to fillies in the claiming game, but we will not shy away from turf gelding. The purpose of the claimer is to have some fun while we wait for the 2-year-olds to develop.

We hope to begin acquiring horses for Brilliant Racing in April, with the Ocala spring sale of 2-year-olds in training (under tack - April 16-21 - sale April 24-27) and the Timonium Midlantic 2-year-olds in training sale (under tack - May 15-17 - sale May 21-22).

This first Brilliant Racing Partnership will close April 23. For more information and to open dialog with our management team, e-mail us at brilliantracing@gmail.com.

3

JOE KRISTUFEKSTABLE MANAGER

BRANDON STAUBLEBLOODSTOCK MANAGER

Infatuated with sports statistics since he was old enough to read the back of a baseball card, Joe discovered his true passion while attending Columbia College in his native Chicago. A print journalism major, one could say that he minored in horse racing, relating every assignment he was given to some aspect of the industry.

Brandon’s love for horse racing began as a teenager attending the races at Churchill Downs with his grandfather. He quickly became fascinated with bloodlines and the development of young horses, and immersed himself in becoming an expert on both.

Upon graduation, Joe got his foot in the door working in the media departments at Hawthorne, Sportsman’s and Arlington, and his 26-year career has taken him all over North America and across the globe.

A self-proclaimed “horse racing ambassador”, Joe loves every aspect of the game, from the barn to the winner’s circle. An award-winning TV producer and fan development specialist, he currently serves as the lead racing analyst at Churchill Downs, home of the Kentucky Derby, Fair Grounds, Kentucky Downs and Ellis Park. As Arlington Park’s morning line maker and the handicapper for the Daily Herald newspaper, he also maintains his ties to Chicago.

Joe takes his job very seriously; dissecting every race and replay on the circuits he covers. His handle of the horse population in the Midwest will serve Brilliant Racing well on many levels, most importantly the claiming game and horse placement.

“Every aspect of horse racing is a challenge, and I thrive on challenges”, Joe said. “Knowing what horses to acquire and the spots to run them in is critical to potential success. I’ve owned five horses in various partnerships over the years, and the experience adds so much to your life. The backstretch is a magical place, and once you get to the winner’s circle, you want to go back as often as possible.”

Brandon served as an apprentice to long-time clocker Bruno De Julio at Churchill, which afforded him the opportunity to analyze the training of some of the most talented horses of the past decade as they prepared for the toughest battles of their illustrious careers, including: Triple Crown winner American Pharoah and champions Gun Runner, Tepin and Forever Unbridled.

In the spring of 2016, Brandon approached Joe about contributing to the Churchill team, and the very next meet his “Work of the Day” appeared in the official track program and website.

4

“At the time, I had no idea who Brandon was, but it didn’t take long for him to earn my respect,” Kristufek said. “From 7-2 shots who run off the screen to 25-1 shots hitting the board, his selections speak volumes, and they are derived directly from what he observes in the mornings. He’s gifted. Evaluating horses is what Brandon was born to do.”

This past year, Brandon began serving as one of Joe’s co-hosts on “Churchill Downs Today” and as a guest analyst from the paddock, where the unique perspective he provided was an immediate hit with horseplayers. In August at Arlington Park, he offered video analysis of the International Festival of Racing horses for Twinspires.com. Brandon also launched InfoForTheRaces.com, the headquarters for all of his workout and race day analysis, and Stauble Thoroughbreds, LLC, a bloodstock purchasing, management and consulting company.

“I want to find the most efficient-striding colt or filly that our budget will allow,” Brandon said. “It’s popular to buy based on pedigree and how fast they worked, but I also gravitate towards the individual that shows me that today is just the beginning. It’s all about potential. When observing horses train, I’m interested in the way they move. Time does not tell the real story. In the traditional sense, horses can’t talk, but reading an individual’s ears is vital to understanding what is going on inside their head.”

NATALIE GILS CLIENT RELATIONS & BLOODSTOCK ADVISER A native of New Jersey, Natalie has been “horse crazy” since a friend first took her riding at the age of 12. A certified barn rat by the time she was 15, she learned to ride on the backs of off-track Thoroughbreds.

An accomplished equestrian, Natalie has more than 25 years of hands-on experience with various breeds of horses. She has ridden competitively and worked with some of the top hunter/jumper trainers on both coasts. A trusted barn manager, Natalie has developed individual programs for horses including feed, general care and workouts and has worked closely with veterinarians on injuries, illness and rehabbing.

For 16 years, Natalie worked as a graphic/web designer in corporate America, before striking off on her own and establishing Some Candy, Inc., a multi-media agency in 2016. A passion for horses, combined with her new-found independence fueled a move to Lexington, where she could enjoy the best of both worlds.

Now fully established in Kentucky, Natalie prepped yearlings and worked the Keeneland sales for a boutique breeder this past year.

“I love young horses, learning what makes them tick, and helping them along in their development,” Natalie said. “In a racing prospect, I look for a well-balanced horse with a powerful hind end and a fluid walk. From foaling to after care, I want to learn every aspect of the industry inside and out. Being a part of Brilliant Racing is exciting. I love horses, design and social media, and I want to help make the experience interactive and fun for everyone.”

5

STEVE MARGOLIS TRAINER

MICHELLE LOVELL TRAINER

Training horses has always been Steve’s calling, but at first, he didn’t realize it.

“I didn’t know what I wanted to do after high school, so a friend suggested I walk hots at Monmouth Park,” he said. “At the time I thought of horse racing as a novelty, but it didn’t take long for me to realize I had a knack for it and that the backstretch and track felt like home.”

A picture with a pony at the age of two helped lay the foundation for the rest of Michelle’s life.

“Some guy used to come through the neighborhood with a horse, dress up the kids, and take pictures to make money,” she said. “That smell, it just stuck with me. I immediately became infatuated. As I got older I read a lot of books, sketched pictures and dreamt about horses.”

A native of New York, Steve’s early apprenticeship came under Hall of Fame trainer John Veitch. He later worked for Pat Byrne, Howie Tesher and Stanley Hough before going out on his own in 2000.

Just two years after saddling his first winner, Steve was represented in the 2002 Kentucky Derby by Request for Parole, who finished fifth behind War Emblem. The following year, he won the Grade I Breeders’ Cup Sprint with Cajun Beat. He also finished second in the 2011 Grade II Breeders’ Cup Turf Sprint with Country Day.

Steve has 609 wins on his resume (17.6%) which includes 13 graded stakes scores. His horses are stabled in Kentucky year-round and he winters at the Fair Grounds in New Orleans.

“Steve is a no-nonsense guy, and a straight-forward communicator,” Joe said. “He cares about his stock and is exceptional at figuring out what a young horse does best and maximizing their talent. We feel like Steve is a trainer we can grow with.”

“Joe and Brandon are very astute in every area of the game, which is a big help for a trainer,” Steve said. “It’s a pleasure to work with owners know how to handicap, understand placement and have realistic expectations.”

6

Once she was old enough, Michelle would walk to the nearby stables, clean stalls, groom and ride horses bareback. While in high school, her family moved to Georgia, and there she had her first exposure to Thoroughbred race horses at Cot Campbell’s Dogwood Stable.

Michelle broke babies in Ocala for several years and eventually galloped horses in New Jersey and Florida for Phil Gleaves, with the goal of becoming a jockey. She credits Rene Douglas, Herberto Castillo, Jr. and Hall of Famer Julie Krone for helping her develop as a rider. Michelle (then Hanley) won 137 races in the saddle, and was the leading apprentice at Gulfstream Park in 1990.

An injury following a freak accident at Retama Park forced her to hang up her tack and return to the world of breaking babies, and in 2003 she got her first opportunity as a trainer. She enjoyed immediate success at Louisiana Downs, Retama, Sam Houston.

“I kind of fell into it,” Michelle admits. “We got stuck with some horses who didn’t sell and the next thing you know, I was training them. I kept my eyes and ears open, used common sense and always put the horse first. Every person who has worked with me and every horse that I’ve trained has taught me something. It’s important to work in a happy environment. Your people and horses respond positively to that.”

Michelle has 460 career wins (17.6%), and last summer she won the Grade III Pucker Up Stakes with Fault, a horse she had claimed just a few starts earlier for $50,000.

“It didn’t take me long to recognize that there was something special about the way Michelle and her staff handle their horses,” Brandon said. “Care, compassion, attention to detail. She just seems to have that “it” factor. Her horses enjoy what they’re doing out on the track, and her team knows how to work with each individual. In the back of my mind I knew when the opportunity to own horses presented itself, Michelle was the right fit.”

“Joe and Brandon are very good at what they do,” Michelle said. “They’re recognizable, well-spoken, honest and have the ability to reach a lot of people. I love that they’re making ownership affordable. I want the partners to come back to my barn and enjoy their horses and the entire experience. It’s a process and the journey. When you watch horses grow up, blossom and succeed, your heart swells. It’s a feeling that’s impossible to explain.”

7

As a Brilliant Racing Partnership One (BR-P1) member, will I have any say in the decision-making process?

Within a horse racing partnership, there are a lot of decisions that must be made, some are critical, others are ancillary.

For fun stuff like horse naming, we will take suggestions through our social media channels, narrow it down to the most popular ones, and take a vote.

Business and financial decisions will be made by the managing partners, with input from the group’s largest unit holders. By joining Brilliant Racing, you’ll need to trust that the organizers will do what’s best for the horses and membership as a whole.

Where does the money go?

Purchasing, maintaining and racing horses is expensive, but we are making it affordable by implementing a one-year plan. It all starts with the trainer’s daily rate, which includes the stall, feed, conditioning, loving care and preparation to race. Each trainer has a staff of people they employ to assist in the process, including assistants, hotwalkers, grooms, exercise riders, etc.

Here is a basic expense guide:

Trainers

Jockeys

Vet

Layup

Horse transportation

Blacksmith

Administrative expenses

How will Brilliant Racing partners be kept up to date on the financials and expenditures?

Financial statements will be sent to members on a quarterly basis, however, members are welcome to contact the managing partners directly if they having a question relating to any part of the financial process.

Should an important financial decision need to be made and potentially executed, the entire partnership will be kept in the loop from start to finish.

FREQUENTLY ASKED QUESTIONS

$90 per day + percentage of purse earnings

Mount fee + 10% of win, 5% of 2nd, 3rd or 4th

Varies per horse, but we’ve built in $800/month

$36 per day

$2,000/year

$175/month

$300/month

8

When the end of the 1-year time frame that expenses were built into approaches, how will the status of BR-P1 be evaluated and what steps will be taken from there?

Eleven months from the closing date of BR-P1 (when the hammer drops on our first purchase at auction), all debts will be settled and units will be assigned a value by the managing partners based on the funds in the account (remaining capital + purses earned) and the appraised value of the horses in our stable.

After this process has been completed, the managing partners will meet and decide if moving forward is in the best business interest of the ownership group. If the managing partners deem that moving forward is the appropriate action, they will calculate the next 6 months worth of expenses. In the event that projected expenses exceed the funds available within the partnership, members may be asked to contribute. If the managing partners deem that the best business decision is to terminate BR-P1, the horses will be sold and the partnership will be dissolved. Based on units owned and finances at the time of termination, members will then receive any financial distribution due.

This might seem a bit complicated, but it is important to us that we provide full disclosure, and that potential partners understand the possible scenarios.

Can a Member leave a partnership while it is still ongoing?

A Member wishing to sell their interest must be prepared to find his or her own buyer. Potential Members should be prepared to be involved for the length of Brilliant Racing Partnership 1 (at least one-year).

Does every partner need a racing license and will everyone have all the benefits of ownership?

No, not every partner is required to have a racing license, however, if any members would like to purchase one we will be more than happy to walk you through the process.

Why did the organizers start Brilliant Racing, and what is their cut of BR-P1?

Joe Kristufek, Brandon Stauble and Natalie Gils love horses and racing, and ownership is fun. In essence, we are one of you. Our experience, connections, confidence and trust in each other inspired Brilliant Racing.

We all have regular jobs and view Brilliant Racing as a life enhancement, not a financial one. We are in this for the challenge and to make memories but are also confident in our abilities to execute the plan and put ourselves in position to succeed.

9

There was a lot of work put in to establishing the partnership and it continues while maintaining it. Here is the breakdown of how our Brilliant Racing, LLC (our managing partners) will be compensated.

• For every 100 units sold, the managing partners will receive three total units

• 5% mark-up on all horses purchased at public auction

• 5% of purse earnings

• 5% on horses sold (including sales such as Keeneland November breeding stock or January horses of all ages, claims and private purchases and only if sales price is equal to or exceeds the amount Brilliant Racing, LLC originally paid for the horse)

We want our partners to be proud members of Brilliant Racing. To feel invested in what we are doing far beyond the financials. Camaraderie is our number one goal!

How will the partnership be informed on our progress?

Short answer, with constant updates on Facebook, Twitter, Instagram and via e-mail, we plan on crushing it on social media. The lines of communication will never close.

As a private clocker based in Kentucky, Brandon Stauble observes horses on the backstretch every morning. He will be providing constant, and honest, updates on how our horses are training, along with photos and videos.

Will members be able to communicate with our trainers and visit the horses?

The life of a trainer is hectic. They have lots of clients besides us, therefore the managing partners will serve as trainer liaisons. We’d appreciate if you communicate with them, through us.

Both Steve Margolis and Michelle Lovell love having visitors to the barn. That’s a part of the reason we chose them. We want our Brilliant Racing partners, and their families and friends (within reason!) to have a personal connection to our horses.

Just please coordinate all barn visits through our managing partners. Take advantage of this aspect of the partnership. The backstretch at a racetrack is a magical place!

Are there any personal tax ramifications?

Not unless you opt out of the partnership and show a profit on your initial investment.

For more detailed information, visit the “tax issues” section on the Thoroughbred Owner View website https://www.ownerview.com/getting-started/tax-issues.

10

How will the managing partners determine which horses we buy?

Once the partnership closes on April 23, and yearly expense calculations are finalized, we will establish a budget to spend on horses. The plan is to purchase a pair of 2-year-olds and use the remainder of the funds to claim a horse that is currently racing.

We will target both the OBS April Sale and Fasig-Tipton May sale with a combined chance to inspect and analyze over 1,200 horses. If, for some reason, we do not meet our goal of acquiring a pair of 2-year-olds in training at those two sales, OBS June will be targeted.

During the lead up to the sale, the managing partners will work tirelessly to come up with a preferred list of horses that could potentially fit into our budget.

Once the auction begins, anything can happen. This is where the fun begins! We will be bidding against other owners and partnerships for the individuals we like. On many of the horses, the price will exceed what we are willing to spend.

Circumstances will dictate how the horse purchase funds are allocated. Theoretically we could buy a pair of 2-year-olds that cost $20,000 apiece, or there might be one individual we really love that we are willing to spend $60,000 for. To be clear, we will not sacrifice the potential quality of our stable just to “pick something up.”

BR-P1 officially begins when the hammer drops on our first horse at auction, and it will conclude one year later.

Once our 2-year-olds are acquired, the remainder of our budget will determine what level of claimer (horse running in a race where they are for sale) we will purchase. Again, we will not make a hasty decision in this area either. At whatever claiming level, we will look for a horse we can have fun with based on upside, soundness (this is where Steve and Michelle come in), conditions they have left, and where they fit within the colony of horses at our home venue (most likely Kentucky, with the potential to van throughout the Midwest to take advantage of opportunities).

Can partners attend the horse sales?

Yes, horse sales are open to the public and the experience is super cool, but please bear in mind that our managing partners and trainers will be fully engaged in the process. Informed decisions are only made through hard work, and that will be our only priority. Following along on the sales company’s website and watching the auctions on-line is another great option.

How soon will it be before our 2-year-olds race?

It’s tough to be patient in this game. We all want action. One of the advantages of purchasing 2-year-olds in training is that they are more “race ready”.

After the sale, our acquisitions will be given one month of turnout time, giving them an opportunity to relax, recharge their battery, and just be a horse.

11

We will not rush them into action. Young horses are often prone to minor setbacks – sickness, shins, etc. Patience is critical to success. All horses are individuals, they will tell us when they’re ready.

The plan is to have fun at the races with our claimer while our 2-year-olds progress.

What if one of our horses gets injured and is forced to retire?

Let there be no doubt. We LOVE horses. We have connections to the after-care community and If we have a horse that is forced into retirement, we will find them a good home.

What happens when one of our horses is entered to race?

You’ll potentially know weeks in advance what race and date we are targeting. Entries for the actual race are usually drawn 2-3 days out.

We want as many Brilliant Racing members as possible to show up on race day, and the managing partners will coordinate a home base, the trip to the paddock for our race, and hopefully our winner’s circle photo!

Especially if you’re traveling from out of town, keep in mind that there is a chance that based on weather/track condition, sickness/minor injury, management decision, etc., that our horse could scratch. Remember, we will all be in constant communication through e-mail and social media and the partnership will be kept informed on all developments.

Will there be any Brilliant Racing social events?

Once our horses are purchased, we will organize a Brilliant Racing “meet and greet” event at a venue to be determined (most likely Churchill Downs in Louisville, Kentucky, home of the Kentucky Derby). You’ll be afforded the opportunity to meet your horses and mingle with the managing partners, trainers and each other!

By reading through the materials, we hope you were able to learn a lot about who we are and what we plan to. If you have any further questions or concerns and/or to take the next step in becoming a BR-P1 member, contact us at brilliantracing@gmail.com. Let’s make some memories!