First question: Router A will only learn about 10.10.10.0 via AS1 so the only routes are the 10Mb link and the 1Mb backup.
When the 10Mb fails, the 1Mb will be the only route available.
This is because even when the network is advertized in AS3, AS2 still has no knowledge about it.
You need to activate some kind of redistribution between the AS3 and AS2 to enable this.
Second question: By configuring redistribution and tweaking the metrics, you can enable any form of load balancing.
The way the AS numbers are assigned makes this more complex and you would do better by reducing the number of AS's.
regards,
Leo