Stallion Service Frozen Semen Contract –My Rugged Destiny This Stallion Service Frozen Semen Contract (“the Contract”) is made and entered into on this the __________day of _______________by and between Atlantic Equine Services, LLC (“Atlantic Equine”) and ______________________ (“Purchaser”), for the purchase of three breeding doses of frozen semen from the stallion “My Rugged Destiny”, AQHA Registration Number 3937249, for use in the artificial insemination of the mares described below (“the Mares”) during the 2006 breeding season. Mare 1: Registration name/barn name: ____________________________/__________________ Previous breeding history: __________________________________________________ Registration Authority and Number: __________________________________________ Breed: _______________________, Height in hands: _________________, Age: ______ Color: __________________________________________________________________ Last vaccines: ____________________________________________________________ Other: __________________________________________________________________ Sire: ___________________________________________________________________ Dam: ___________________________________________________________________ Grand Sire: ______________________________________________________________ Mare 2 Registration name/barn name: ____________________________/__________________ Previous breeding history: __________________________________________________ Registration Authority and Number: __________________________________________ Breed: _______________________, Height in hands: _________________, Age: ______ Color: __________________________________________________________________ Last vaccines: ____________________________________________________________ Other: __________________________________________________________________ Sire: ___________________________________________________________________ Dam: ___________________________________________________________________ Grand Sire: ______________________________________________________________ Representations, Rights, and Responsibilities of Purchaser 1. Purchaser represents the Purchaser is the owner or lessee of the Mare, or is otherwise authorized by the Mare’s owner(s) to breed the Mare in accordance with the terms of the Contract, and that the Mare will be in healthy and sound breeding condition at the time of artificial insemination. 2. Upon acceptance and execution of the Contract by Atlantic Equine, Purchaser agrees to pay to Atlantic Equine the sum of $1500.00. This fee includes a nonrefundable booking fee of $500.00. Breeding fees received by December 31, 2005 will be honored with an early booking discount of $400. Other discounts may apply. 3. Upon the receipt of the breeding fee by Atlantic Equine, the Purchaser shall have the right to receive from Apex Veterinary Hospital (“Veterinarian”) three breeding doses of semen collected from My Rugged Destiny. 4. Purchaser is responsible the contracting and arranging with Apex Veterinary Hospital at 1600 East Williams St. Apex, NC 27539 (919) 362-8879 the shipment of the frozen semen to purchaser. Purchaser is responsible for paying the costs of shipping. 5. The semen becomes the property and the sole responsibility of Purchaser upon shipment to purchaser by Apex Veterinary Hospital. 6. Purchaser represents that the semen will not be used to impregnate any mares other than those described above without the prior written consent of Atlantic Equine. Purchaser is to make impregnation of Mare 1 top priority. Upon confirmation of pregnancy of Mare 1 by a licensed veterinarian and written notification of this pregnancy to Atlantic Equine, any remaining semen may be used to inseminate Mare 2. 7. Purchaser agrees to use the services of an approved reproduction equine veterinarian to handle the frozen semen and for the insemination of the Mares. 8. Purchaser is responsible for ascertaining the Registry requirements for the use of frozen semen and subsequent registration of foals conceived through the use of frozen semen. 9. Purchaser agrees to perform a pregnancy ultrasound on or before the 16th day after the insemination and send written confirmation of the pregnancy to Atlantic Equine. 10. Purchaser agrees to complete and return to Atlantic Equine a copy of the attached Frozen Semen insemination Report, signed and dated by the licensed veterinarian who performed the insemination. B. Representations, Rights, and Responsibilities of Atlantic Equine 1. Atlantic Equine reserves the right to approve or disapprove the Mares for breeding to My Rugged Destiny, and to reject an offer to purchase frozen semen. 2. Upon receipt of the breeding fee, Atlantic Equine will direct Apex Veterinary Hospital to release the semen for shipment to Purchaser. 3. All semen provided pursuant to this Contract is sold and provided in an “AS IS” condition. Atlantic Equine makes no guarantee or warranty as to the fertilizing capacity of any semen provided under the terms of this Contract, either express or implied, and all such warranties are specifically disclaimed. Atlantic Equine represents only that the semen was collected, stored, and shipped in accordance with accepted veterinary practices by Apex Veterinary Hospital. 4. Atlantic Equine does not guarantee the birth of a live foal or offer rebreeding in the even no live foal is produced. C. Apportionment of Risk and Liability 1. Purchaser assumes all risks of loss, damage, or injury related to the purchase and use of the semen. 2. Purchaser shall indemnify and hold Atlantic Equine, Veterinarians, and any parties involved harmless against any loss, liability, or damages incurred in connection with or arising from: (i) the services provided under this contract, (ii) any activity, work, or thing done or permitted to be done by Atlantic Equine pursuant to this Contract, (iii) any acts, omissions, or negligence of Atlantic Equine or any person claiming under Atlantic Equine, (iv) any breach, violation, or non-performance by Purchaser or any person claiming under Purchaser of any term, covenant, or provision, of this Contract, or any law, ordinance, or governmental requirement of any kind, or (v) liability for any loss including but not limited to fire, theft, sickness, disease, injury, death, damage or other harm suffered by Mare, Foal, or Purchaser, Agent, or employees, whether or not deemed to be caused by Atlantic Equine’s negligence. D. Miscellaneous 1. Atlantic Equine shall mean and include the LLC, its owners, managers, members, and agents. Veterinarians shall mean Apex Veterinary Hospital 1600 East Williams St. Apex, NC 27539. 2. The Contract shall be governed by, and construed in accordance with, the laws of the State of North Carolina, U.S.A. The sole and exclusive venue for any legal proceedings arising out of the subject matter of the contract will be in the General Court of Justice, New Hanover County, N.C. 3. Each provision of the Contract shall extend to and shall, as the case may require, bind and inure to the benefit of Purchaser and his/her/its respective heirs, legal representatives, successors and assigns. 4. In case any one or more of the provisions contained in the Contract shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not effect any other provisions hereof and the Contract shall be constructed as is such invalid, illegal, or unenforceable, provision had never been contained herein. 5. The Contract represents the entire agreement between the parties, and may not be changed except in writing signed by both parties. No other agreements or promises, verbal or implied, are included unless specifically stated in this written Contract. 6. This contract becomes binding upon both parties when the breeding fee is paid and Atlantic Equine signs and returns a copy of the Contract to Purchaser. Purchaser: _____________________ Date: _________________________ By: ___________________________ Name/Title: ____________________ Atlantic Equine Services, LLC By: _______________________ Date: ______________________ Name/Title: ________________