1.The obligations set out in Article 3 shall apply in particular to:
(a)the requirements for entering the competition, in particular the minimum or maximum requirements;
(b)the judging of the competition;
(c)the prize money or profits which may accrue from the competition.
2.However,
the obligations referred to in Article 3 shall not affect the organization of:
competitions reserved for equidae registered in a specific studbook for the purpose of permitting the improvement of the breed;
regional competitions with a view to selecting equidae;
historic or traditional events.
Member States intending to avail themselves of these possibilities shall inform the Commission thereof beforehand in general terms.
for each competition or type of competition Member States shall be authorized to reserve, through the bodies officially approved or recognized for that purpose, a certain percentage of the prize money or profits referred to in paragraph 1 (c) for the safeguard, development and improvement of breeding.
The percentage may not exceed 30 % in 1991, 25 % in 1992 and 20 % from 1993.
The criteria for the distribution of these funds in the Member State concerned shall be communicated to the Commission and the other Member States within the Standing Committee on Zootechnics.
Before 31 December 1992 the Council shall re-examine the conditions for the application of these provisions on the basis of a Commission report that takes account of the progress made in harmonization in connection with all problems posed by the conditions for the breeding of competition horses, together with appropriate proposals on which the Council shall act by a qualified majority.
3.The general rules for the application of this Article shall be adopted in accordance with the procedure laid down in Article 6.