Western CROSS ARABIANS & Pintos 8200 Floyd Ct, Weatherford, TX 76087 Holly Dillin, Owner (817) 994-0918 hdillin@mac.com www.westerncrossranch.com Lisa Baker, Breeding Manager (817) 994-1081 lisa@westerncrossranch.com TRANSPORTED SEMEN BREEDING AGREEMENT This agreement is made this ________ day of _______________, _______ by and between Western Cross Ranch of 8200 Floyd Ct., Weatherford, TX, hereafter called Western Cross and of hereafter called Breeding Customer, to wit: WHEREAS, Western Cross stands the stallion AHRA 658313 Sire: Artisan MP *Rough Justice X Dam: Diamonds Are (the “Stallion”) and; WHEREAS, the breeding customer wishes to breed the mare AHRA Sire: (the “Mare”) to the stallion during the as set forth herein: X Dam: 2014 breeding season (the “Breeding Season”), via transported semen, WHEREAS, the stud fee for the Stallion shall be $ 1000.00 payable as follows: $250.00 USD non-refundable booking fee due upon execution of this Agreement with the remaining $750.00 USD due prior to shipment of semen or breeding of mare and transported semen fees shall be in addition to the stud fee and payable as follows: $300 Equitainer deposit, refundable upon termination of breeding if returned in good condition. Payment required prior to shipment of semen. $400 Collection and Shipping fee within the Domestic U.S., payable prior to each shipment of semen. Additional fees apply for shipment outside the U.S. NOW, THEREFORE, the parties agree as follows: 1. BREEDING: The Breeding Customer hereby requests Western Cross to collect fresh semen from the aforementioned Stallion and deliver said semen to Breeding Customer via a commercial shipper. Breeding Customer accepts all risks of shipment and Western Cross accepts no responsibility for delays in the shipment of the semen or damages to the semen during shipment. Breeding Customer agrees that semen will be delivered subject to availability of a commercial shipper and the schedule of commercial shippers, as well as the terms and conditions as set forth below 1 a) Breeding Customer agrees to abide by the payment schedule for both the stud fee and transported semen fee, which appear herein and on the attached fee schedule. All fees must be paid before semen will be shipped. b) Designated Veterinarian and/or Breeding Manager. Western Cross agrees to ship semen to the location designated by the Breeding Customer when said location has access to a licensed veterinarian and/or breeding manager, who is experienced in and familiar with Artificial Insemination with Transported Semen. The designated veterinarian or breeding manager shall be: Name: Telephone: Address: City: State: Zip: Breeding Customer certifies that the veterinarian and/or breeding manager to whom the semen is to be shipped practices equine reproduction as a regular part of his/her practice and is available to perform breeding related procedures which will enhance the Mares ability to conceive and maintain a pregnancy to term. c) Breeding Customer, when not using his/her own transported shipping container, agrees to return Western Cross’ shipping container to Western Cross within 48 hours of Breeding Customer’s receipt of container. When such time as Western Cross has been notified of the Mare’s 60 day pregnancy check, Western Cross will either return the $ 300 deposit for the container, or will credit said deposit to Breeding Customer’s account with Western Cross. Should Western Cross not be in receipt of the shipping container within four (4) days of Breeding Customer’s receipt of container, Western Cross will apply a charge of $ 25 per day as a late fee to Breeding Customer’s account. Breeding Customer shall assume the expense of returning the container to Western Cross and accepts all liability for loss or damage during its return to Western Cross. d) The Breeding Customer agrees to abide by the rules of The Arabian Horse Registry of America, Inc., or any and all other Registries pertinent to the registration of the resulting foal, in its requirements for foal registrations, blood typing of the Mare and resulting foal, and transported semen permit(s) for the Mare. Breeding Customer also agrees to complete the Insemination Report section of the AHRA Semen Transportation and Collection and Insemination Report form provided for this purpose. e) The Breeding Customer assumes all responsibility for the condition of the mare including, but not limited to her reproductive health and breed ability and shall bear all risks of infertility, loss, or damage to the Mare. f) Western Cross agrees to provide semen subject to the rules of The Arabian Horse Registry of America, Inc. and will complete the Collection Report section of the AHRA Semen Transportation Collection and Insemination Report form provided for this purpose. g) Semen will be delivered on a first come, first served basis. The stallion shall be collected no more than once a day and semen will be available for transportation after all mares on the farm to be bred on such day have been served. It is in the interest of both Breeding Customer and Western Cross that semen be shipped in a safe and timely manner and while Western Cross warrants that the semen will be fertile under normal shipping conditions, it is possible that shipping delays or mishandling may occur. In this event, Western Cross will, upon notification from Breeding Customer of this circumstance, send a subsequent shipment of semen, which will be subject to a new priority basis on the day of such shipment. The Breeding Customer acknowledges that all orders for semen are subject to availability during the breeding season from February 15 to August 15. Breeding Customer also acknowledges some stallions may not always be available due to show schedule or illness. h) The Breeding Customer promises to use transported semen for only the mare named in this agreement. Use of said semen for the insemination of any other mare, in its entirety or any portion thereof or the failure of the Breeding Customer to make its payments as provided herein and on the attached fee schedule shall automatically terminate all the obligations of Western 2 Cross specified in this agreement including, but not limited to Western Cross’ completion of the Stallion Service section of the AHRA Foal Application For Registration form. 2. CHARGES, FEES AND EXPENSES: Breeding Customer agrees to pay Western Cross all charges, fees and expenses incurred by Western Cross in its connection with the performance by it of its duties hereunder identified herein and on the fee schedule attached hereto. Except for those charges, fees, or expenses for which Western Cross requests payment in advance, the charges, fees, and expenses due hereunder shall be due and payable within thirty (30) days from the date of any billing or invoice rendered by Western Cross. Breeding Customer agrees to pay a late charge in the amount of the lesser of 1.5% per month or the greatest charge allowed by law on all sums not paid when due hereunder. 3. REPRESENTATIONS OF BREEDING CUSTOMER: Breeding Customer hereby represents and warrants to Western Cross that: (a) it has the authority to execute, deliver and perform this agreement, including without limitation the authority to grant the security interest granted hereby; (b) all consents necessary to the entering by it into this Agreement and the performance by it of its obligations hereunder have been obtained; and (c) the execution, delivery and performance by it of this Agreement do not and will not constitute a violation or breech of any agreement, law, judgment, order of decree to which it or the Collateral is subject or to which it is a party, and do not and will not result in the acceleration of any obligation of it under any agreement to which it is a party or by which it is bound. 4. DISCLAIMER OF WARRANTIES, LIMITATION OF LIABILITY: a) Disclaimer of Warranties. WESTERN CROSS HEREBY DISCLAIMS ALL WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING WITHOUT LIMITATION WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, OTHER THAN THOSE WARRANTIES EXPRESSLY SET FORTH HEREIN. b) Limitation of liability. Breeding Customer hereby agrees that the Western Cross parties shall not be liable for any special, incidental, or consequential damages arising from the transactions covered by this Agreement, including without limitation any damages arising from the nonperformance of obligations which Breeding Customer may have undertaken to any third party in reliance upon promises and representations made in this Agreement. IN NO EVENT SHALL THE WESTERN CROSS PARTIES’ LIABILITY FOR ANY ACTION OR CAUSE OF ACTION ARISING UNDER THIS AGREEMENT EXCEEDS THE AMOUNT OF THE FEES PAID BY THE BREEDING CUSTOMER HEREUNDER. c) REBREEDING IN CERTAIN CASES: In the event that the Mare fails to give birth to a Live Foal by the Stallion in the following year after the last day on which the Mare was bred to the Stallion, the Breeding Customer may, upon payment of a rebreeding fee of $_________, rebreed the Mare, or a substitute mare approved by Western Cross at any time prior to August 1 of the year following the year in which the Breeding Season occurred. All such rebreeding and all aspects thereof, including without limitation, care of and liability for the Mare or the substitute mare, shall be subject to the same terms and conditions as applied to the Mare during the Breeding Season as set forth herein. Notwithstanding the foregoing, the Breeding Customer shall have no right to a rebreeding: (a) for any breeding season except as set forth above; (b) if the Mare’s inoculations against equine influenza and rhinopneumonitis are not kept current by the Breeding Customer at all times; (c) if the Breeding Customer has not rebred the Mare, or a substitute mare, to the stallion before August 15 of each breeding season for which it is entitled to a rebreeding hereunder; or (d) if the Mare’s failure to give birth to a Live Foal by the stallion was due to the negligence, recklessness or intentional misconduct of the Breeding Customer or its agents. For the purposes hereof, the term “Live Foal “ shall mean a foal, which is insurable following birth. 5. MISCELLANEOUS: This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns, provided however, that the Breeding Customer may not assign its right or delegate it duties hereunder without the prior written consent of Western Cross. This Agreement may be executed in any number of counterparts; each counterpart constituting an original but all together one and the same instrument and contract. 3 This Agreement shall be governed by and construed in accordance with the laws of Texas. This Agreement and the exhibits referred to herein constitute the entire agreement between the parties and supersede all prior oral and written negotiations and understandings with respect to the subject matter hereof. Except as otherwise provided herein, this Agreement may be amended or modified only by a writing signed by both parties hereto. Any communication made in connection with this Agreement shall be made in writing to the address shown in the first paragraph of this Agreement, or to such other address as has been most recently designated in writing by one party to the other. Any notice or communication shall become effective when deposited in the United States mail properly addressed with proper postage for first class mail prepaid. Breeding Customer shall reimburse Western Cross for all costs, fees, and expenses, including reasonable attorneys’ fees, incurred by Western Cross in enforcing its rights under this Agreement, and for all federal, state, and local sales or use tax liabilities, if any, connected with or related to this Agreement or any transaction arising hereunder, including however taxes based on the net income of Western Cross. BREEDING CUSTOMER AND WESTERN CROSS HAVE READ, UNDERSTAND AND ACCEPT ALL TERMS OF THIS CONTRACT BREEDING CUSTOMER DATE WESTERN CROSS DATE 4