Eugene Melnyk and Robert N. Clay have reached an agreement in principle for Melnyk Racing Stables' grade I winner Flower Alley to stand at Clay's Three Chimneys Farm near Midway, Ky., in 2007.Three Chimneys will acquire a 50% interest in the breeding rights in the son of Distorted Humor. Flower Alley will remain in training with Todd Pletcher and be pointed toward the Breeders' Cup Classic Powered by Dodge (gr. I)."Flower Alley was absolutely scintillating in his performances last year," Clay said. "He won the Travers (gr. I) and Jim Dandy (gr. II), and ran a very game and combative second to Horse of the Year Saint Liam in the Breeders' Cup Classic. Afleet Alex was voted champion 3-year-old, but Flower Alley ran a 110 or better Beyer (Speed Figure) three times--in all three of those races."Melnyk Racing Stables elected to retain 50% of the horse because I'm very excited about Flower Alley's prospects as a stallion," Melnyk said. "He's far and away the best son of Distorted Humor at stud and Distorted Humor is the best stallion by his sire, Forty Niner. Plus, he's one of the two or three hottest stallions in the business right now."Four-year-old Flower Alley, who is out of Lycius mare Princess Olivia and has the great stallion Lyphard in his female family, has won five of 13 starts and earned $2,533,910. He also has won the Lane's End (gr. II) and Salvator Mile (gr. III) Stakes and run second in the Arkansas Derby (gr. II) and Dwyer Stakes (gr. II).Flower Alley will stand for $25,000 live foal."He has been a big time racehorse, he's a big time stallion prospect, and we should have our pick of mares at that price," Clay said. "We will sell a limited number of shares from our portion of the ownership."Flower Alley, who was bred in Kentucky by George Brunacini and Bona Terra Farms, was purchased by Melnyk at the 2003 Keeneland September yearling sale for $165,000 from Walnut Green, agent. He is named for a street in the heart of Bridgetown, the capital of Barbados.