1. THE CANADIAN APPALOOSA INCENTIVE FUND has been designed with several objectives in mind. Including the encouragement of Appaloosa owners to increase their breeding programs, while becoming more selective, to produce better quality offspring which will command the higher market prices they deserve. This is being done in such a way as to increase entries and support ApHCC approved Regional and National Shows, as well as increase the membership of the National Club. It is also to supply financial rewards to those breeding and exhibiting good quality foals up to the age of four, and to give a new marketing tool to ApHCC Appaloosa owners standing stallions or raising and selling foals.

2. CANADIAN APPALOOSA INCENTIVE FUND
An Investment Incentive Program for the Owners of Appaloosa Stallions and Foals - Sponsored by the Appaloosa Horse Club of Canada

3. THE WORKING SYSTEM
The CAIF is an incentive program offered by the Appaloosa Horse Club of Canada to ApHCC members who are owners of ApHCC registered stallions and foals.

The program is very simple, repaying owners of nominated stallions and foals depending on how well the foals (up to and including their four-year-old-year) place at ApHCC approved shows. The more National points earned by the foal, the more money that is paid back to the stallion and foal owners.

The stallion owner nominates his stallion annually and receives payback for as long as his nominated foals are exhibited and earning points (up to five years).

The program also benefits foal owners as they nominate their foal for a one time fee and receive money for points earned throughout the four-year-old-year.

From the total funds accumulated in each age category, 85% is paid back to the foal owners, 10% goes to the stallion owner and 5% to the original foal nominator. Payments are made shortly after the end of the calendar year.

4. GENERATION OF INCOME
Stallion Nominations:

IF RECEIVED before November 30                                                               $250.00
    of year previous to Nominated Breeding Year
IF RECEIVED December 1st to December 31st                                              $300.00
    of the year previous to the Nominated Breeding Year 
IF RECEIVED during the Nominated Breeding Year                                        $350.00
   
Foal Nominations:    

Within 60 days of foaling                                                                                   $100
Up to December 31st of foaling year                                                                 $125
After December 31st of foaling year (up to and including four-year-old-year)     $200

Foal nominations are paid one time ONLY and the horse retains eligibility to the end of its four-year-old-year.

5. NOMINATION REQUIREMENTS
Stallions:
The stallion must be registered with the Appaloosa Horse Club of Canada and the owners must be members in good standing of the ApHCC at the time of nomination.

Foals:
Foals must be sired by a stallion, which was nominated to the fund for the breeding year prior to that in which the foal was born. The nominator and owner of the foal must be Appaloosa Horse Club of Canada members in good standing.

6. DISTRIBUTION OF FUNDS
100% of all funds received from stallion and foal nominations are maintained in an interest bearing account. The interest is paid to the ApHCC to help with administration costs, and the balance is held in trust to be paid out to the nominated foals, 20% for each of the five years that they are eligible.

The total funds in each category are then divided by the total number of eligible National points earned by all nominated foals in that age division for the calendar year. This results in a cash value point to be paid out.

The funds from each point are paid as follows:
    *    85% to the registered owner of the foal on December 31st
    *    10% to the registered owner of the foal's sire on December 31st
    *    5% to the original nominator of the foal

The more points a foal earns, the more it receives in payback.

7.  ADDITIONAL INFORMATION
Foal nominations are allotted to the age division, which the foal is in, regardless of when they are paid, (i.e. if a horse is paid in as a yearling in 2003, the $200.00 will be added to the "foals of 2002" fund).

Points will count as Incentive Fund points only after the date the foal nomination is received by the ApHCC. Foal Nominations may be accepted by a Show Secretary (provided that a foal has already been registered) and filed with show results. A separate cheque is to be attached to the "Foal Nomination" form, payable to the Canadian Appaloosa Incentive Fund, before the horse is exhibited, in order for its points at the show to count.

8. STALLION OWNERS
Upon receipt of their Nomination, will receive:
1. A certificate acknowledging that the stallion is nominated for that year's breeding season.
2. A listing in the Nominated Stallion List in the Jan/Feb/Mar and Apr/May/June issues of "The Appaloosa".
3. Eligibility for additional discount for full-page black and white ad in the Annual Stallion issue.

9.  FOAL OWNERS
Will receive a gold seal to attach to the registration certificate, which will show that this horse is nominated to the CAIF.

10.  ELIGIBLE POINT CLASSES
Eligible ApHCC approved classes for which points may be accumulated for CAIF payback include all horse-awarded classes such as Open and Amateur Halter and Performance classes, Games, etc., but not exhibitor-awarded classes such as Showmanship and Equitation.
(Youth horse-awarded points will count also for foals of '96, '97, '98 & '99)

11. WHAT ARE THE ADVANTAGES?

    1.   Increased value of offspring.
    2.   Increased value of stallion service.
    3.   Expanded market due to financial return of exhibiting Appaloosa horses.
    4.   Increased quality of foals due to encouragement supplied by financial awards.
    5.   Financial return for exhibiting foals.
    6.   Offers a stallion owner another marketing tool to make this stallion's service more attractive.
    7.   Gives stallion owners potential return from any foal produced for up to five years, even if he/she does not own or exhibit the horse.
    8.   Gives the foal owner the financial incentive to show the foal, which increases the stallion's reputation.
    9.   Makes nominated foals more valuable and attractive when offered for sale.
    10.  Foal nominators can receive financial return through the foal's four-year-old year.
    11.  Increases the value of a stallion's offspring after others are enrolled in the program and are earning money.
    12.  Stallions receive additional publicity through periodic listings in "The Appaloosa".
    13.  Increases the number of entries at Regional and National shows so that all horses will gain more points.
    14.  AND THE LIST GOES ON......