NAPHA STALLION AUCTION
Terms and Conditions

NAPHA is making each breeding available to the highest bidder with the agreement
of the stallion owner, under the following conditions.

1. The Stallion Auction will begin November November 4 and close on
    November 17, 2007

2. The initial bid will be set at 60% of the usual breeding fee. Minimum increments
of $100.00 will be accepted for subsequent bids.

3. The number of bids on each stallion and the identity of the bidders shall be held
confidential by NAPHA.

4. Shortly after the closing of the auction, the stallion owner will be furnished with
a list of all who bid on his/her stallion.

5. The stallion owner will be notified by November 19, 2007, of the highest bid on
his/ her stallion.

6. When notified of the high bid, the stallion owner will notify NAPHA, of his/her
acceptance of the bid. The stallion owner has the right to refuse the high bid. If this
occurs, the breeding may be sold to the next highest bidder. If any dispute arises
between two or more bidders the Board of Directors of NAPHA will have the right
to make the final decisions.

7. Payment for the breeding service purchased must be made not later than
November 23, 2007. The stallion owner/agent will be notified by NAPHA as soon as
the amount of the winning bid has been paid, so that proper arrangements can be
made between the parties.

8. The breeding service purchased must be completed during the 2008 breeding
season unless other arrangements are made between the service purchaser and
the stallion owner.

9. All contractual arrangements, shipped semen, mare care, veterinary costs and
other expenses are the responsibility of the service purchaser.

10. In the event that the stallion chosen dies or becomes unavailable to breed due
to illness or he leaves the country, the bidder must choose one of the following
options:

a) Breed to another stallion whose service has not already been purchased provided
that the stallion owner agrees.

b) The funds may be carried over only to the following year's NAPHA stallion
service auction to place a bid on the same or on a different stallion.

11. Money collected by NAPHA for breedings sold through the stallion auction
will be used, at the discretion of the board, for continued service improvement to
the membership, promotion and advertising of the breed, or other uses that would
benefit the membership and the breed.