CHAMPIONSHIP BULL RIDING, INC. CBR Championship Futurity Tour Agreement and 2016 Rules & Regulations The CBR Championship Futurity Tour (“CFT”) scheduled bucking bull competition events are owned, sanctioned and managed by Championship Bull Riding, Inc. (“CBR”) which reserves the right and authority to rule on all aspects of the CBR CFT (“CBR CFT Bull Team Events”), including but not limited to business, competition, infractions of these Rules and Regulations and any related disputes among CBR CFT Bull Team Ownership owners (“Owners”), employees, independent contractors, agents and other persons affiliated with the Bull Team Ownership (collectively, including Owners, referred to as the “Participants”). CBR will investigate all disputes, controversies and complaints and has the right, power and authority to administer monetary fines, to disqualify Bull Team Ownership Participants or remove them from the CBR CFT Bull Team Events competition if deemed necessary and in the best interests of CBR and the CBR CFT Bull Team Events. The decisions of CBR shall be final and binding on all CBR CFT Bull Team Ownership Owners and Participants. CBR reserves the right to make any necessary prospective changes to the CBR CFT Bull Team Events Rules and Regulations as the CBR CFT Bull Team Events progress with any changes to be promptly posted on the CBR website. The reputation, public image and integrity of CBR are valuable assets that are vital to the CBR’s success. Each Owner and Participant in every CBR CFT Bull Team Event is responsible for conducting their business and personal actions and behavior relating to the CBR and its scheduled CBR CFT Bull Team Events, including related gatherings and meetings, in a manner that demonstrates a respect and commitment to the reputation, public image and integrity of the CBR. Accordingly, illegal, dishonest, disturbing, embarrassing, disruptive or unethical conduct or behavior in the immediate vicinity of, at or around a CBR CFT Bull Team Event or at any related gathering or meeting shall constitute a violation of these Rules and Regulations as determined in the sole discretion of the CBR, regardless of whether the Rules and Regulations specifically address the particular behavior or conduct. For and in consideration of the mutual covenants, promises and agreements herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby agreed to, each CBR Bull Team Ownership Owner acknowledges and agrees to the terms and conditions of this Agreement as follows: 1. Rules of Conduct: a. CBR CFT Bull Team Event Participants agree to conduct themselves in a manner consistent with all applicable laws, ordinances and legal third-party restrictions and consistent with the values, objectives and positive image of CBR. CBR CFT BULL TEAM CHALLENGE - RULES AND REGULATIONS - 2016 Page 1 b. All CBR CFT Bull Team Event Participants present on the grounds of a CBR Event during event hours agree to be subject to the CBR Rules and Regulations. c. In addition, Participants agree that CBR maintains jurisdiction over misconduct that may occur off the grounds of the CBR CFT Bull Team Event or outside CBR CFT Bull Team Event hours, provided that the misconduct is directly or indirectly related to the CBR CFT Bull Team Event. d. The Rules and Regulations shall be interpreted by CBR as broadly as is necessary to regulate any such off grounds misconduct as social media abuse, abuse of motel rooms or restaurants by Participants attending the CBR CFT Bull Team Event and/or abuse of a bull entered in the CBR CFT Bull Team Event, including but not limited to, any action or activity that is perceived or deemed by CBR as detrimental to CBR. e. The CBR may immediately terminate the Participant’s participation in a CBR CFT Bull Team Event upon the delivery of a written Notice of Termination to the Participant setting forth the conduct that has occurred which violates the Rules and Regulations, or terminate on such later date as may be set forth in such Notice of Termination, which conduct may include: i. Participant’s wrongful act or wrongful failure to act that could adversely affect the CBR, or its reputation or public image, as determined by the CBR; ii. Participant’s arrest, indictment or conviction for, any act of fraud, any commission of any felony other than a minor third degree felony such as a moving traffic violation involving a DWI or a DUI conviction; iii. a violation of any provision of these Rules and Regulations likely to cause harm or damage to the CBR. 2. Indemnification: a. Each CBR CFT Bull Team Ownership owner hereby agrees to indemnify, defend, and hold CBR and its affiliates, and all of the foregoing entities' respective officers, directors, owners, employees, agents, representatives and assigns harmless from and against any and all losses, damages, liabilities and costs incurred by the Indemnified Parties in connection with any claim based upon or arising out of any breach or violation by the specific CBR CFT Bull Team Ownership Participants of this Agreement and/or these CBR Rules and Regulations. b. No CBR CFT Bull Team Ownership shall have any liability for the actions or inaction of any other third-party CBR CFT Bull Team Ownership. 3. Limitation of Liability: a. UNDER NO CIRCUMSTANCES, INCLUDING NEGLIGENCE, SHALL CBR OR ITS AFFILIATES BE LIABLE TO ANY CBR BULL TEAM OWNERSHIP OWNER OR PARTICIPANT FOR ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES INCLUDING LOST PROFITS, PERSONAL INJURY (INCLUDING DEATH) AND PROPERTY DAMAGE OF ANY NATURE WHATSOEVER, THAT MAY RESULT FROM THE PARTICIPATION BY A PARTICIPANT IN ANY CBR BULL TEAM EVENT, EVEN IF CBR HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. CBR CFT BULL TEAM CHALLENGE - RULES AND REGULATIONS - 2016 Page 2 b. MOREOVER, UNDER NO CIRCUMSTANCES SHALL CBR OR ITS AFFILIATES, OR ANY OF THE FOREGOING ENTITIES BE HELD LIABLE FOR ANY DELAY OR FAILURE IN PERFORMANCE RESULTING DIRECTLY OR INDIRECTLY FROM AN ACT OF FORCE MAJEURE OR CAUSES BEYOND ITS REASONABLE CONTROL. 4. Sale of Bull Team Ownership and CBR Right of First Refusal. a. The Bull Team Owner acknowledges and agrees that every proposed sale of any CBR CFT Bull Team Ownership is subject to and conditioned upon the prior written consent and approval of CBR regardless whether or not CBR elects to exercise its Right of First refusal as set forth herein below. b. Before any CBR CFT Bull Team Ownership held by a Bull Team Owner may be sold or otherwise transferred, the selling CBR CFT Bull Team Owner shall give CBR written notice of all the material terms and conditions of the proposed sale and CBR shall have a ten (10) business day right of first refusal after receiving such written notice to purchase the CBR CFT Bull Team Ownership being offered for sale on the same terms and conditions as then being offered to the selling CFT Bull Team Owner. c. The selling CFT Bull Team Owner shall (a) deliver to CBR a written notice (the "Notice") stating: (i) the selling CFT Bull Team Owner's bona fide intention to sell or otherwise transfer such CBR CFT Bull Team Ownership; (ii) the name of each proposed purchaser or other transferee; (iii) the cash price or other consideration for which the selling CFT Bull Team Owner proposes to transfer the CBR CFT Bull Team Ownership (the "Offered Price"); and (v) the material terms and conditions of the proposed transfer (the "Offer Terms") and (b) offer the CBR CFT Bull Team Ownership at the Offered Price and on the Offer Terms to CBR or its assignee(s). d. If the CBR CFT Bull Team Ownership proposed in the Notice is not purchased by CBR within ten (10) business days after CBR receives such Notice, then the selling CBR CFT Bull Team Owner may sell or otherwise transfer such CBR CFT Bull Team Ownership to that proposed Transferee at the Offered Price or at a higher price and on the Offer Terms, provided that such sale or other transfer is consummated within thirty (30) days after the date of the Notice and provided further that any the proposed transferee agrees in writing that the provisions of this section shall continue to apply to the CBR CFT Bull Team Ownership in the hands of such proposed transferee. e. If the CBR CFT Bull Team Ownership described in the Notice is not transferred to the proposed transferee within such thirty (30) day period, a new Notice shall be given to CBR, and CBR and/or its assignees shall again be offered the Right of First Refusal before any CBR CFT Bull Team Ownership held by the selling CBR Bull Team Owner may be sold or otherwise transferred. 5. Governing Law: Any disputes between an Owner or Participant and CBR regarding these CBR Rules and Regulations shall be governed by and construed in accordance with the laws of the State of Texas without giving effect to its conflict of law principles and the Owner or Participant hereby consents to the exclusive jurisdiction and venue in the Texas state courts in the City of Weatherford, Parker County, Texas and United States District Court for the Northern District of Texas. CBR CFT BULL TEAM CHALLENGE - RULES AND REGULATIONS - 2016 Page 3 Rules and Regulations 1. CBR CFT BULL TEAM OWNERSHIP: a. CBR CFT League currently consists of twenty (20) CBR CFT Bull Team Ownership teams. b. CBR reserves the right to expand the CFT League in 2016. c. Annual Sustaining Ownership Fee = twenty-five hundred dollars ($2,500.00) per year due by November 1, 2016, after which a five hundred dollar ($500.00) late fee will be added to Annual Sustaining CFT Bull Team Ownership Fee. d. Annual Sustaining Ownership Fees, entry fees, late fee penalties that have not been received by the CBR office by November 15, 2016, or other applicable fees, penalties or non-sufficient fund (NSF) transactions may result in suspension of competition and/or termination of Ownership, all to be determined at the sole discretion of CBR. 2. SCOPE OF COMPETITION: CBR CFT Bull Team Events are conducted in accordance with the CFT schedule as determined by CBR and as announced, advertised and posted. 3. ENTRY REQUIREMENTS: a. Bulls competing in Championship Futurity Tour Events are not required to be registered. b. Eligible Futurity bulls must be born between January 1 and December 31, two years prior to the year of competition. c. Each team will consist of three (3) bulls. d. CFT World Finale Teams must be comprised of a minimum of one (1) bull that has competed in at least one (1) regular season CBR CFT Event. 4. AGE VERIFICATION a. Bulls that are registered and/or age verified through Rodeo Genetics, UBBI, ABBI or NBBA will be accepted for CFT competition. b. In the Event bulls are not registered or age verified, such bulls can be made “Age Eligible” prior to competition by a licensed veterinarian’s certification that the bull meets the proper age requirements pursuant to the approved mouth chart. (L. Man Cropsey, DVM Golden, Colorado) c. CBR reserves the right to age verify and/or disqualify any bull participating at a produced, sanctioned or co-sanctioned CBR CFT Event. 5. ENTRY PREFERENCES: A completed entry form and payment of entry fees are required for a team to be officially and formally entered into a CBR CFT Event. 6. ENTRIES: a. Entries will be taken through the CBR offices in Weatherford, Texas for the CBR CFT Events. b. Methods of entry: Mailed entry form with payment, US Mail or overnight courier with personal checks, cashier’s check, money order, or credit card or faxed entry with credit card payment. (a four percent (4%) service fee applies to all credit card entries.) CBR CFT BULL TEAM CHALLENGE - RULES AND REGULATIONS - 2016 Page 4 c. “Entries open” date will be on the Monday, four weeks prior to the scheduled CBR CFT Event and will close on the Monday two weeks prior to the scheduled CBR CFT Event. d. Entry forms and entry fees must be in the CBR office in Weatherford by 5:00 pm (Central Time) on “entries closed” date (not postmarked by entry closed date). e. Bull(s) will not be considered officially “entered” and added to the list of entries until all required documents and fees are received in the CBR office in Weatherford no later than the entry closing date. f. Entries received after entry closing date will be assessed a three hundred dollar ($300.00) late fee penalty. g. Entry fees will be Twenty-Five Hundred Dollars ($2,500.00) per CFT team. 7. CBR CFT WORLD FINALE: a. All CFT teams will qualify for the CBR CFT World Finale. b. Each CFT team will be required to attend the CBR CFT World Finale. c. The CFT World Finale entry fee will be Five Thousand Dollars ($5,000.00) per team. 8. PAYOUT: a. CFT Event payout will be 75% of total purse based on a full field of entries. b. Payout will be based on one (1) position paid for every four (4) entries, unless indicated otherwise before the Event. c. The CFT Event Champion will receive a minimum $20,000.00 (based on the minimum field 20 teams of 3 bulls per team). 9. HEALTH REQUIREMENTS: a. Bulls competing at CBR sanctioned or co-sanctioned events will be required to have a Certificate of Veterinary Inspection with results of a negative TB test and a negative Brucellosis test (within 12 months), unless otherwise posted in event details. b. A 30-day Certificate of Veterinary Inspection (health papers) with these test results must be presented at check-in. c. Additional requirements for individual states may differ, so Participants are required to check with a state licensed veterinarian to confirm any additional requirements. d. CBR, in its sole discretion, may request additional testing for any particular bull. e. Special ground rules regarding health requirements may apply to specific CBR events and will be included and posted in CBR CFT event details. 10. HORNS: a. All CFT competing bulls must have their horns tipped to the size of a twenty-five cent coin prior to arriving at check-in for the CBR CFT event (broken or loose horns are excluded from this rule). CBR CFT BULL TEAM CHALLENGE - RULES AND REGULATIONS - 2016 Page 5 b. At the discretion of a judge or event official, if an un-tipped or inadequately tipped animal arrives at a CBR sanctioned or co-sanctioned futurity, the bull must be tipped prior to competition and may be subject to a fine. c. Bulls may not be tipped on-site at the CBR Event location. d. Failure by an Owner to comply may result in forfeit or loss of any and or all entry fees and related expenses previously paid by the Owner. 11. DUMMIES: The official dummy of the CBR is “The Little Blue Bucking Dummy” 12. COMPETITION FORMAT a. At CBR CFT Events, bulls will be bucked with a dummy for five (5) seconds. b. Each CFT Bull Team will consist of three (3) bulls. c. All three (3) scores will be entered into the system and will be added together to determine the total CFT Bull Team score. d. Order of finish will be determined by total “Team Score”. All CBR CFT team bulls must pen together. e. Additional pen space will be available if needed to house bulls individually at an additional cost of One Thousand Dollars ($1000.00) per bull. f. A separate individual bull competition with an optional Five Hundred Dollars ($500.00) per bull entry fee will be offered. g. Payback will be 75% of total purse and one (1) position for every four (4) bulls entered. 13. IDENTIFICATION: a. Bulls must be fire or freeze-branded permanently with a permanent identification number and all brands must be readable. b. CBR reserves the right to disqualify any bull entered due to discrepancies in identifying bull or bulls in competition. 14. ARRIVAL / CHECK-IN: a. Check-in times will be event specific. b. Contact the Stock Manager or Event Coordinator to make arrangements for early arrival outside designated check-in times. c. Late arrivals will be subject to a two hundred dollar ($200.00) late arrival penalty. 15. JUDGING GUIDELINES: a. CBR sanctioned or co-sanctioned CFT Events will use four (4) judges, unless stated otherwise in the Event Ground Rules. b. Bulls will be scored 1 – 25 (using ¼ point system) points considering their ability in five categories: Buck, Kick, Spin, Degree of Difficulty, and Intensity. c. There will be no re-bucks for any reason. d. Qualified judges will be selected by Tuff Hedeman. CBR CFT BULL TEAM CHALLENGE - RULES AND REGULATIONS - 2016 Page 6 16. ELECTRICAL DEVICES AND FOREIGN OBJECTS: a. Any and all electrical devices used to stimulate the bull are not permitted for use inside the bucking chute. b. Foreign objects in flank will not be allowed or tolerated. c. Any Owner not adhering to this rule is subject to disqualification of the bull involved in the particular incident, and/or total disqualification from the competition in its entirety and forfeiture of any and all entry fees. d. In addition, failure to adhere to this rule could result in suspension and/or fine of the Owner and/or suspension of the bull. 17. DRAW/CHUTE POSITION: a. Bucking order will be determined by random draw. b. After random draw, bulls will be grouped by like ownership. c. Delivery changes must be made on Friday one week prior to Event. 18. TIE BREAKERS: a. There will be no tie breakers at CBR sanctioned CFT Events. b. Ties will be paid as straight splits. 19. WITHDRAWAL: a. Prior to entries closing a bull may be withdrawn without penalty or forfeit of entry fees. b. After entry closing, owners may withdraw animals from competition with a veterinarian release, and replace a withdrawn bull with a bull of like ownership. 20. PERSONNEL: Gate men, arena help and production labor will be provided by CBR and/or the event producer and only these designated individuals will be permitted to conduct their specific tasks. 21. TESTING & ADMINISTERING MEDICATION: a. Any substance deemed illegal for bovine use by local, state or federal law are strictly forbidden at CBR CFT Bull Team Events. b. CBR, in its sole discretion, reserves the right to test participating bulls for any reason. c. Biological samples may be collected, including blood, tissue and/or fluids, from any bull or bulls for any reason. d. If an Owner suspects another Owner of using a substance deemed illegal for bovine, the objecting Owner may challenge the accused Owner by submitting a written and signed statement in a designated CBR CFT Challenge Agreement together with paying one thousand dollars ($1000.00) to CBR to challenge the said bull team to be tested for illegal substances. e. No challenges will be accepted after the event payout (typically within 15 minutes of the completion of the CBR CFT Bull Team Event). CBR CFT BULL TEAM CHALLENGE - RULES AND REGULATIONS - 2016 Page 7 f. All CBR CFT Event checks will be held until the challenge has been resolved by CBR. g. Within 24 hours, the said Owner whose bull team has been challenged will be required to have the bulls tested by a licensed veterinarian with CBR management present. h. If a bull(s) on the accused bull team tests negative for illegal substance, the challenging Owner shall forfeit the one thousand dollars ($1000.00) to the accused Owner whose bull was tested and the challenging Owner shall be financially responsible for any veterinarian and testing bill. i. If a bull(s) on the accused bull team tests positive for illegal substance, the accused Owner with the illegal bull(s) will pay the veterinarian and testing bills, forfeit any winning, and may be required to forfeit the CFT Bull Team Ownership, if so determined by CBR, in its sole discretion. j. The challenging Owner will be refunded the one thousand dollars ($1000.00) challenge fee in the event the bulls in question are disqualified. k. CBR also reserves the right to levy a reasonable fine against the Owner at its discretion. 22. AGE CHALLENGE PROCESS: a. CFT Bull Team Owners only may challenge the age eligibility of any other CFT Owner’s bull(s) at a CFT Event and any challenge must be registered with an Event judge or CBR management immediately. b. No challenges will be accepted after the Event payout (typically within 15 minutes of the completion of the Event). c. All CFT Bull Team Event checks will be held until the challenge has been resolved. d. The cost of the challenge is One Thousand Dollars ($1,000) per bull. e. Within 24 hours, the said Owner whose bull team has been challenged will be required to have the bull's age verified by a licensed veterinarian with CBR management present. f. If a bull(s) on the accused CFT Bull Team tests to be of the proper age, the challenging Owner shall forfeit the one thousand dollars ($1000.00) to the accused Owner whose bull was tested and the challenging Owner shall be financially responsible for any veterinarian and testing bill. g. If a bull(s) on the accused bull team tests to not meet the proper age requirements, the accused Owner with the illegal bull(s) will pay the veterinarian and testing bills, forfeit any winning, and may be required to forfeit the CFT Bull Team Ownership, if so determined by CBR, in its sole discretion. h. If a bull(s) on the accused bull team tests to not meet the proper age requirements the challenging Owner will be refunded the one thousand dollars ($1000.00) challenge fee in the event the bulls in question are disqualified. i. CBR also reserves the right to levy a reasonable fine against the Owner at its discretion. 23. RULE CHANGES & DELETIONS: CBR reserves the right to alter, amend, revise, or otherwise change any term, condition or provision of the CBR CFT Bull Team Events Rules and Regulations, on a prospective basis, in its sole discretion at any time. 24. By the signature below, the Owner expressly acknowledges that the Owner has carefully and thoroughly read this Agreement and these Rules and Regulations and agrees to abide by, adhere to and be subject to the terms and conditions as set forth herein. CBR CFT BULL TEAM CHALLENGE - RULES AND REGULATIONS - 2016 Page 8 Championship Bull Riding, Inc. __________________________________ Benny H. Cude, Jr. Chairman of the Board Agreed by CBR CFT Bull Team Ownership Owner: Signature : Print name: Date: _____________ Date: _____________ Cell #: Agreed by CBR CFT Bull Team Event Participant: Signature : Print name: CBR CFT BULL TEAM CHALLENGE - RULES AND REGULATIONS - 2016 Cell #: ___________________ Page 9 2016 Championship Futurity Tour Payouts REGULAR SEASON QUALIFIERS CFT estimates regular season qualifying event payout based on the minimum 20 teams per event. $2,500 Entry Fee. 75% Payback. 1st $20,000.00 2nd $7,000.00 3rd $5,000.00 4th $3,000.00 5th $2,500.00 $37,500.00 CFT WORLD FINALE CFT estimates CFT World Finale payout based on the minimum 20 teams. $5,000.00 Entry Fee. 100% Payback. 1st $50,000.00 2nd $20,000.00 3rd $11,500.00 4th $7,500.00 5th $6,000.00 6th $5,000.00 $100,000.00 CBR CFT BULL TEAM CHALLENGE - RULES AND REGULATIONS - 2016 Page 10