GENERAL FUTURITY STUCTURE

1. The long-term plan is that the money for the payout in the Futurity will come from three sources: 1) The AHBA Stallion breeding auction, 2) The Nomination Fees of $500 per Stallion per year, and 3) The entry fees for the Futurity Classes.

2. The horses eligible for the futurity classes will consist of one nominated foal sired by each Auction Stallion from the person who has the wining bid for each of the stallions in the AHBA Stallion Auction (Successful Auction Bidder) and one nominated foal from each Stallion Owner who entered a Stallion in the Auction. Each nominated foal must be officially entered prior to December 31 of the year prior to the birth of the foal.

3. The Futurity classes will be held at the Las Vegas Show and will consist of a Yearling Class for fillies, a Yearling Class for Colts, a Two Year Old Class for fillies, and a Two Year Old Class for Colts. The prize money available for each class will be 25% of the total available money collected from the AHBA Stallion Auction and the entry fees collected for each individual class. For example, the Stallion Auction funds and Stallion Nomination Fees collected at the 2008 Auction will be divided as follows: 25% for the Yearling Filly Class in 2010, 25% for the Futurity Yearling Colt Class in 2010, 25% for the Two Year Old Filly Class in 2011, and 25% for the Two Year Old Colt Class in 2011. Each of these classes would also include the entry fees collected for each individual class added to the prize money. Prize money will be given in each class to the Class Champion, Class Reserve Champion, and the remaining three horses making up the Top Five.

4. The Futurity Classes will be Amateur To Handle (ATH) classes. They will be conducted and judged in the same manner as the other halter classes at the Las Vegas Show. Winners of the Futurity Classes will not be eligible for the normal Las Vegas Show Junior Champion classes. Horses can be entered in both the Futurity Class and the Las Vegas normal halter classes.

5. The AHBA Stallion Auction will be conducted each year. Tthe AHBA Board reserves the right to change the time and place of the auction. Stallions in the Auction must be nominated by an AHBA Stallion Rights Holder. Each Stallion Rights Holder can nominate a maximum of two stallions for each Auction. One of the Stallions nominated by a Rights Holder must be owned by the Stallion Rights Holder. Stallions Rights Holders have two options to select within 60 days after the completion of the Stallion Auction: 1)The Stallion Right Holder MAY pay any deficit on the final auction bid price as necessary to bring the breeding price up to $2,500.00 and thereby earn the right for the Stallion Owner to nominate, in addition to foal nominations by the Successful Auction Bidder, ONE mare in foal to this stallion for the resulting Futurity class, OR 2) The Stallion Rights Holder MAY elect NOT to pay the deficit required to bring the breeding price up to $2,500.00 which thereby ELIMINATES the Stallion Rights Holdrtd right to nominate one mare in foal to this stallion. If Option 2 is selected, the only foal eligible for the AHBA Futurity Classes will be the Successful Auction bidders for the AHBA Futurity Classes. In all cases, the successful Auction bidder will retain their mare nomination right as long as the $1,000.00 minimum bid is guaranteed and paid to AHBA by the Stallion Rights Holder.

6. The number of AHBA Founding Stallion Rights Holders will be limited to 25, with each Founding Rights Holder having the ability to nominate two stallions for the Auction. The one-time fee to become an AHBA Founding Stallion Rights Holder will be $2,500 which must be paid to AHBA before 1 November 2007. After the initial 25 Stallion Founding Rights Holders are committed, the AHBA may consider a limited number of additional Rights Holders at a higher initiation fee than the Founding Rights Holders. Individual Stallion nominations for the Stallion Auction will be $500 per stallion per year.