The Walking Horse Report has obtained a copy of the letter from the TWHBEA to Sand Creek Sales informing them of the investigation by the Enforcement Committee.

The letter is dated July 8 but was reportedly not received until July 17 according to Sand Creek officials. The letter is signed by Jack Doss, enforcement committee chairman, and is on the letterhead of the Bussart Law Firm, not the TWHBEA.

The Report had requested copies of the letter from Bob Kilgore, owner of Sand Creek Sales, and the TWHBEA but both requests were denied. The Report subsequently was able to obtain a copy of the letter from confidential sources. Letters were sent to four Sand Creek representatives - Bob Kilgore, Brian Kilgore, Kenny Lawrence and Kim Wilson.

Dear Mr. Lawrence:

I am the chairman of the Enforcement Committee of the Tennessee Walking Horse Breeders and Exhibitors Association (TWHBEA). As such, I have been furnished certain letters by members of TWHBEA which were sent from you and/or your business organization soliciting our members. The Enforcement Committee has acted to initiate an investigation of your activities to determine whether violations of the Bylaws, corporate rules, or copyrights of TWHBEA have occurred.

Specifically, the confidential horse registry information compiled and owned by TWHBEA has been used by you and your organization for commercial purposes. This information includes Lineage Horse Information contained in the copyrighted records of TWHBEA, including registration numbers, foal dates, sire, dam, markings and horse owner information.

As a member of TWHBEA, or a non-member using the privileges thereof, you are obligated to abide by the rules (Article VIII, Article X, Article II). Rule 19 of the Corporation Rules which provides as follows:

Rule 19: COPYRIGHT STATEMENT

The certificate of registration is intended for the private use of the owner of the named horse and the content thereof may not be copied or otherwise reproduced without the express written consent of the Tennessee Walking Horse Breeders and Exhibitors Association.

This information may also have been obtained through Lineage Software which is produced by TWHBEA or iPEDs database. Upon installing and using the information, you agreed that the system and database were confidential horse registry information compiled and owned by TWHBEA as follows:

By Registering as a user of Lineage Software, and by accessing the Lineage Software database, you agree to the following:

1. The Lineage Software system and database includes confidential horse registry information compiled and owned by the TWHBEA. Use of information in the database is restricted to registered users for person, noncommercial purposes only.

2. The Lineage Software database, compilation of registry data and other Lineage software content, are each protected by U.S. copyrights for non-commercial, personal use only. No information or material from the Lineage Software system may be reproduced or distributed for any commercial purpose. Copyright TWHBEA 1997-2003. All Rights Reserved.

3. Use of the Lineage Software system and registry data is also subject to the Rules and Regulations of the TWHBEA.

Consequently the use of this information is restricted to personal, noncommercial use only. You have also violated that agreement by your conduct.

We have set July 26, 2004 at 1:30 p.m. at Bussart Law Firm, 520 North Ellington Parkway in Lewisburg, Tennessee, for an investigative meeting concerning this matter. For purposes of this meeting, we have engaged Walter Bussart, Esq., as a special investigator to present evidence relating to this inquiry to the committee. You are specifically invited to appear to assist the committee in this investigation.

The result of this meeting could be: (1) a letter of understanding with conditions could be issued, (2) a complaint could be filed, or (3) the matter could be closed.

This meeting does not waive or preclude any other remedies available to TWHBEA under its rules or by law or equity.

Please notify Sharon Brandon at (931) 359-1574 if you will be in attendance before July 20, 2004. You may attend without participating in any way in the discussion if you choose.

Thank you for your attention to this matter.

Very truly yours,

Jack Doss, Chairman, Enforcement Committee