9. Once a prospect has crossed one of the thresholds in rule 8 above, he/she must be promoted to the MLB roster no later than the next February Prospect Cutdown or the next Annual MiLB Draft Prospect Cutdown, whichever comes first. If a player crosses the playing time threshold but is not actively cut or promoted at the relevant cutdown, then they are effectively a free agent and they can be selected in the annual waiver draft or added as a free agent in Yahoo (The Jake Lamb rule).
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I think we might need to clarify this rule a bit. For example, if Domingo Santana gets 501 PA before the prospect draft, at which exact moment does he become a FA? The moment the cutdown deadline arrives? It's a bit of a grey area.