CONDITION OAK TREE 2010 SANTA ANITA 2011 BELMONT 2011 KEENELAND 2011

NW2X (short) $44,000 $51,000 $55,000 $54,000

NW1X (short) $40,000 $48,000 $53,000 $52,000

MDNS (short) $38,000 $45,000 $50,000 $50,000

Purse Comparison

Track Report (purse generation)

1 La Canada Stables LLC ........................................522 Benjamin C. Warren .............................................473 Gary and Cecil Barber ..........................................214 J. Paul Reddam ....................................................195 Glen Hill Farm ......................................................18

1 Barbara DeLima ...................................................452 Leroy Krum ...........................................................353 Terri Eaton ............................................................234 Joseph P. Morey, Jr. Revocable Trust ...................225 Dennis January. ....................................................22

1 Glen Hill Farm .................................................. 62 La Canada Stables LLC .................................... 52 Benjamin C. Warren ......................................... 52 Harris Farms, Inc. .............................................. 55 Mr. and Mrs. Jerome S. Moss .......................... 4

1 Barbara DeLima ............................................. 102 Joseph P. Morey, Jr. Revocable Trust ............... 93 Santiago C. Rodriguez ..................................... 64 Jerry Hollendorfer & George Todaro .............. 55 Leroy Krum ....................................................... 5

1 Peter and Mary Hivers & E.W. and Judy Johnston .............................. $780,000 2 Glen Hill Farm ................................................. $443,040 3 Mr. and Mrs. Jerome S. Moss ......................... $358,770 4 La Canada Stables LLC ................................... $279,660 5 Coudelaria Jessica .......................................... $273,785

1 Tommy Town Thoroughbreds LLC ................. $125,678 2 Joseph P. Morey, Jr. Revocable Trust ............. $120,305 3 Barbara DeLima ............................................... $98,859 4 Jerry Hollendorfer & George Todaro ............... $72,195 5 Linden Trust ...................................................... $64,060

Leading Owners from the CARFJune 15, 2011 through August 21, 2011

July 20, 2011 through September 7, 2011Leading Owners from the DMTC

MOST STARTS

MOST STARTS

MOST WINS

MOST WINS

MOST EARNINGS

MOST EARNINGS

TOC Northern CaliforniaAnnual Meeting

Saturday, October 22nd at Golden Gate Fields

All members are invited to attend our annual meeting in the Bay View Lounge at Golden Gate Fields starting at 10am followed by a complimentary lunch Buffet. This will be a special event for TOC members as all TOC Directors & Staff will be on hand to answer questions and discuss any and all matters concerning the TOC and horse racing in general. Please RSVP by October 19th online or call our offi ces at (626) 574-6620. The TOC Owners’ Challenge Handicapping Contest sponsored by XpressBet will be held following the lunch in the Bay View Lounge. The contest is limited to 150 TOC members and registration is strongly recommended. Register online or call (626) 574-6620 for more information and to register.

Handle $1,458,066 $1,403,857 ($54,209) -3.72%Purse Commissions $60,360 $58,667 ($1,693) -2.81%SB 1072 $0 $17,042 $17,042 NATotal Purse Commissions $60,360 $75,709 $15,349 25.43%

Handle $9,767,148 $9,369,295 ($397,853) -4.07%Purse Commissions $413,115 $393,044 ($20,071) -4.86%SB 1072 $0 $113,806 $113,806 NATotal Purse Commissions $413,115 $506,850 $93,735 22.69%

CARF MEETS 2010 VS. 2011AVG. DAILY HANDLE / REVENUE ON LIVE RACES

DEL MAR 2011 (THROUGH 7-30)AVG. DAILY HANDLE / REVENUE ON LIVE RACES

2010 2011 Diff $ Diff % 2010 2011 Diff $ Diff %

TOC is Under Attack!!The California Thoroughbred Horseman’s Association (CTHA) wants you to get rid of your independent owners’ organization, the Thoroughbred Owners of California (TOC)—the group that was created to protect your business interests and rights as an owner and that has done so for years. Don’t buy what the CTHA is trying to sell you.

CTHA wants you to believe that they are an alternate owners’ organization. In fact they are primarily a trainer-dominated group—incorporated by a trainer, Bruce Headley, and being directed on a daily basis by another trainer, Darrell Vienna. They are individuals with personal agendas and vendettas. They would not dedicate themselves to your needs, as TOC does. Remember that it was the California Thoroughbred Trainers (CTT), under the leadership of Mr. Vienna, that sought to block the recent bill that raised your purses. The trainers already have their own organization; they certainly don’t need two groups to control, particularly when it would mean the loss of the independent owners’ organization. As an owner, you need an independent voice. You need TOC to continue to:

• Protect your purses.

• Work with the breeders and racetracks to incentivize horse ownership.

• Negotiate with the tracks to protect your rights and interests as an owner.

• Fight for you in Sacramento and at the CHRB.

• Continue to expand ADW revenues going into the purse account.

• Seek alternate sources of gambling revenue to build our business and keep it competitive with other states.

• Fight for the right medication rules.

PROTECT YOUR RIGHTS AS AN OWNER. PROTECT YOUR INDEPENDENT VOICE. PROTECT THE TOC.

The recently concluded Del Mar meeting was a huge success on all levels. The glorious weather and competitive racing led to an average fi eld size of 8.3 starters, up from 8.2 in the prior year. While the meet showed a modest decline of 4% in overall handle, total purse commissions saw an increase of 22.69% from 2010. This was a direct benefi t of SB 1072. Del Mar not only had the highest average purses

per category in the country, but will also be making a 10% retroactive payment to owners who won money in overnight races. The CARF meets, while showing a small decrease of 3.7% in handle, generated purses that were 25.43% higher than 2010. This, once again, was a result of the passage of the bill that was co-sponsored by the TOC.

! HELP TO

C FIG

HT TO

PROTEC

T YOU

R RIGH

TS

Through September 25, 2011, w

ith 3 fewer race days this year,

Golden G

ate has a daily average handle on live races which is

down approxim

ately 8% com

pared to summ

er 2010. How

ever, w

ith almost $400,000 added to revenue dedicated to purses

from SB 1072, an increase of m

ore than 30% can be seen as a

positive trend for owners. This m

oney has been applied to an overpaym

ent that was in excess of $500,000 and w

hich has now

been reduced to less than $190,000. We anticipate that,

on an average per race basis, the purses for the fall meet w

ill be approxim

ately 10% higher than the recently concluded

summ

er meeting.

Protecting California Ow

ners

Del M

ar10%

Retro Payment to O

wners

Golden

Gate Fields

285 W. H

untington Drive

Arcadia, C

A 91007!

!

Ship

& W

in Su

mm

ary

We

wan

t to

com

mun

icat

e w

ith y

ou a

nd p

rovi

de y

ou w

ith im

port

ant

upda

tes

as t

hey

occu

r!Pl

ease

vis

it ou

r w

ebsi

te a

t w

ww

.toc

onlin

e.co

m a

nd a

dd y

ours

elf t

o ou

r em

ail l

ist!

Last

Jun

e w

e an

noun

ced

that

the

Cal

iforn

ia T

horo

ughb

red

Busi

ness

Lea

gue

(CTB

L) a

ppro

ved

sub-

sidy

fund

ing

for

a st

atew

ide

wor

kers

’ com

pens

atio

n pr

ogra

m t

o Fi

nish

Lin

e Se

lf In

sura

nce

Gro

up.

The

CTB

L ov

erse

es fu

nds

inte

nded

to

prov

ide

relie

f to

owne

rs a

nd t

rain

ers

in t

hree

way

s:

• A

sub

sidy

for

trai

ners

’ bac

kstr

etch

wor

kers

’ com

pens

atio

n;

• A

sub

sidy

for

jock

ey m

ount

wor

kers

’ com

pens

atio

n;

• A

Sta

rter

Fee

to

owne

rs o

f hor

ses

com

petin

g in

ove

rnig

ht r

aces

, whi

ch fi

nish

fi ft

h or

six

th

and

bey

ond

(dep

endi

ng o

n fi f

th p

lace

pur

se m

oney

).Fr

om t

he a

vaila

ble

pool

of f

unds

roug

hly

one-

third

of t

he p

ool g

oes

to s

ubsi

dize

eac

h of

the

thr

ee

expe

nditu

res

abov

e. U

nfor

tuna

tely

, due

to

a co

ntin

uing

dec

line

in t

he p

ool o

f ava

ilabl

e su

bsid

y fu

ndin

g, a

ll al

loca

tions

wer

e re

duce

d an

d, a

s a

resu

lt, t

he S

tart

er F

ees

paid

to

owne

rs d

ecre

ased

by

13%

as

follo

ws:

$350

at

Sout

h Tr

acks

(was

$40

0) |

$26

0 at

Nor

th T

rack

s ($

300)

| $

130

at N

orth

Fai

rs ($

150)

To o

ffse

t th

e de

clin

e in

ava

ilabl

e su

bsid

y fu

nds

(whi

ch h

as d

eclin

ed 4

5% s

ince

200

8) a

nd a

ris

e in

w

orke

rs’ c

omp

insu

ranc

e co

sts,

the

CTB

L ha

s au

gmen

ted

subs

idie

s pa

id t

o th

e pr

ogra

m b

y pu

lling

fr

om it

s fi n

anci

al re

serv

es.

At

the

end

of fi

scal

yea

r 20

10, r

eser

ves

wer

e $2

.5 m

illio

n. B

y th

e en

d of

fi sc

al y

ear

2012

, the

CTB

L pr

ojec

ts t

he re

serv

e ba

lanc

e at

$50

0,00

0.

Wor

ker’s

Com

p & St

arte

r Fe

es U

pdat

e

A n

ew “

ship

and

win

” pr

ogra

m w

as im

plem

ente

d pr

ior

to t

he o

peni

ng o

f the

201

1 D

el M

ar t

horo

ughb

red

mee

t.

A fe

e pe

r in

itial

sta

rt a

nd b

onus

pur

se m

oney

bas

ed o

n re

sults

lure

d al

mos

t tw

ice

as m

any

out

of s

tate

sta

rter

s as

th

e D

el M

ar m

eet

run

in 2

010.

An

anal

ysis

of c

ost,

bas

ed

on in

cent

ives

off

ered

and

reve

nue,

in a

dditi

on t

o ha

ndle

fr

om a

dditi

onal

sta

rter

s, s

how

ed t

he p

rogr

am t

o be

ve

ry s

ucce

ssfu

l. Th

e Th

orou

ghbr

ed O

wne

rs o

f Cal

iforn

ia

cong

ratu

late

Del

Mar

on

a gr

eat

mee

t an

d lo

ok fo

rwar

d to

con

tinue

d pr

ogre

ss o

n pr

ogra

ms

with

ow

ner

driv

en

ince

ntiv

es.

For

mor

e de

tails

ple

ase

cons

ult

the

TOC

web

site

w

ww

.toc

onlin

e.co

m

We

wan

t to

com

mun

icat

e w

ith y

ou a

nd p

rovi

de y

ou w

ith im

port

ant

upda

tes

as t

hey

occu

r!

from

its

fi nan

cial

rese

rves

. A

t th

e en

d of

fi sc

al y

ear

2010

, res

erve

s w

ere

$2.5

mill

ion.

By

the

end

of fi

scal

yea

r 20

12, t

he C

TBL

proj

ects

the

rese

rve

bala

nce

at $

500,

000.

!

!There has been a great deal of m

isinformation circulated by the leadership of the C

alifornia Thorough-bred H

orsemen’s A

ssociation (CTH

A). Perhaps the m

ost misleading statem

ents that have been made

relate to the ability of certain types of owners to vote and to the m

atter of an election. It is time to

clarify the situation and to inform you, our ow

ners, of THE TRU

TH.

First of all, the board of the TOC

wants to give the right to vote to both independent ow

ners and ow

ner/trainers. The problem w

e are facing is a result of the fact that the law allow

ing owners holding

multiple licenses, such as ow

ner/trainer, to vote has sunset and, at this point in time, only an ow

ner w

ith no other license has the legal right to cast a ballot. We need and w

ant to get this situation recti-fi ed in order to allow

ALL ow

ners to vote, regardless of whether they hold m

ultiple licenses.

Why are w

e in this predicament? You should be aw

are of the fact that the TOC

supported fi x-it leg-islation a year ago. Passage of this bill w

ould have resolved the problem. A

t the time, the C

alifornia Thoroughbred Trainers, led by D

arrell Vienna, did not give its support to the bill (nor did they support SB 1072 that led to your purse increases) and, as a result, it died during the session. It is that sam

e D

arrell Vienna who is now

leading the effort to decertify the TOC

and, ironically, he is using the inabil-ity of the ow

ner/trainers to vote as a key issue in his campaign. If it w

as not for Mr. Vienna w

e would

not be in this predicament. A

ll we needed at the tim

e was the support of the C

TT. Perhaps there was

an underlying motive to his unw

illingness to cooperate on the passage of the legislation. One can only

wonder and speculate, but if one looks at the driving force behind the C

THA

and studies their “PPs”, the answ

er seems obvious.

The fact of the matter is that the TO

C has asked the C

alifornia Horse Racing Board (C

HRB) to deter-

mine w

hether it has the ability to amend our by-law

s. If the answer from

the CH

RB is yes, then we w

ill do just that and re-institute the right to vote for all ow

ners. If the racing board responds negatively, then w

e will m

ove to re-introduce legislation to resolve the problem during the next session. W

e want

to be able to offer the right to vote to all owners. It’s that sim

ple.

Congratulations! Because of the great success of D

el Mar’s 2011

Meet, w

hich had the highest average purses per category in the nation, ow

ners that earned purse money from

overnights will

be receiving retroactive payments in the am

ount of 10%. These

checks will be m

ailed out in the very near future.

Right to Vote!