“UNION DE CRIADORES DE CABALLOS ESPAÑOLES” UCCE “UNION DE CRIADORES DE CABALLOS ESPAÑOLES” 1

BUSINESS MENTALITY IN THE MANAGEMENT OF "UCCE" Company “U.C.C.E.” Shareholder Breeder MEMBER Standards consensus Board of Directors Board ASSOCIATION Transmit standards and goals Ensuring its compliance Managers Managers Implement standards and objectives providing customer service Customers Breeder MEMBER 2

WHY BECOME A MEMBER OF THE UCCE? B ecause it can do for us what we can’t do for ourselves. B ecause we want an association that is managed professionally, where employees are focused in providing services to its members without any favouritism. B ecause we want a return of our investment (make sense of what we pay for belonging to it) B ecause we want a membership where policies and procedures are approved by a majority of its members. B ecause UCCE will work in three main lines to help its members: To achieve the management of the Stud Book of Origin. The promotion and sale of horses. Aid in the management of the farms. 3

WHAT WILL WE DO TO HAVE THE STUD BOOK MANAGEMENT? There are two ways to accomplish this: The UCCE will support an International Group of International Associations of Pure Spanish Breed Horses (PRE) to ask the Spanish Ministry of Agriculture a new management for the Stud Book as provided in the existing Spanish Law 2129/2008. We believe this new management of the Stud Book should be under the control of Spanish Ministry of Agriculture in conjunction with renowned breeders and presidents of regional associations, national and international, who will be responsible, accountable and work for transparency, reliability and legality of all proceedings on the Stud Book. To develop the new management of the Stud Book, a project that intends to locate the headquarters of the Stud Book in Madrid will be proposed, with offices in the regions and countries where Pure Spanish Breed horse associations exists. Complying with the standards established by the Spanish Law 2129/2008: If a National Association request the Stud Book. Association that represents 25% of the breeders. Association that represents 30% of breeding mares. 4

WHAT WE WILL OFFER ONCE WE HAVE THE STUD BOOK? Reasonable costs. Implement a proper selection scheme to help improve the rating of our breed in all of our horses. Breeders will seek agreements with stallion horse owners lowering the costs of the mating. Organize veterinary services to offer the possibility of cheaper embryo transfers. Seek grants to reduce the whole livestock. Modify the breeding reproduction system developing score systems correct and credible. Avoid having to give our customer base data. We want to ensure that all reviews of our farms are conducted by judges without any interest conflict and are linked to the scheme of breed selection. 5

ACTIONS TO BE IMPLEMENTED FOR THE INTERNATIONAL PROMOTION AND SALE Seek agreements with media to promote the horse nationally and internationally. Maintain communications with ministries to: Find ICEX ( Spanish international commerce institute) grants : Open new sales channels internationally. Attend trade shows and national and international competitions which will communicate to all farmers in advance all those fairs that get grants to offer the possibility to attend them all equally Seek ways to streamline the procedures of documentation and health requirements for export and measures to lower the cost of transport. Develop horse auctions. Look for European sales channels to sell as many horses as possible. 6

ACTIONS TO BE IMPLEMENTED TO ADVISE IN THE MANAGEMENT OF FARMS (For Spain only) We will negotiate prices from different suppliers of goods and services at national and regional scope: Insurance: we have agreed a minimum discount of 20% your current insurance policies. Food: feed and fodder. Veterinary products. Veterinary services: health checks, x-rays, embryo transplants, etc. National horse transport and abroad. Training material: saddlery, horse walkers, etc. Farriers Vehicles We will seek for administration grants and financial aid from various suppliers, coordinating us with province associations, offering to the members: Icex: support for international trade. Aid to promote the various sporting disciplines and young horse cycle. Support for competitions and shows. Grants to reduce the whole livestock We will seek for agreements with HHRR training schools and training for breeders. 7

.… WE ASK YOU TO BECOME UCCE MEMBER BECAUSE …. We must ensure that we have the management of the LG (Stud Book) as soon as possible. Because being a majority, before April 1, 2011: We will begin organizing competitions where our horses are valued objectively. We will have a professional structure and properly sized organization leveraging the business experience of Mr. Leopoldo Fernandez Pujals. We will have a web to communicate with all the members and put you in touch with members of international associations such as "American Foundation, to offer their products directly to its members. We will offer great discounts on consumed products such as insurances were the member can get already a 20% minimum discount. (for Spain only) 8

... AND WE JUST ASK FOR... A nominal fee paid annually or semiannually: Full right members € 200, will be coded livestock breeders and entitled to vote. Sympathizer members € 100, can be breeders or fans and non-voting. To buy your products to the suppliers that we provide you because in addition to the discount they made for you they give us a 3% of your purchases, helping us in financing our association. (for Spain only) In case of helping you to get discounts from your current supplier to require them a 3% for the association. (for Spain only) To help us get 2 new members. 9