TERMS & CONDITIONS

The following Terms and Conditions of Sale, as amended by any posted notices or oral
announcements by the Sale Agent or Auctioneer prior to or during the auction, constitutes the
entire agreement between the bidders and the auction. On the other hand, Arabians LTD or Rock
Arabians, now known in this Terms and & Conditions as consignor, has the legal right to convey
good title to the said Unborn Foal/Horse. Auctioneer/Auction, makes no representation or
warranties whatsoever to any bidders or to any successful buyer, and shall have no obligations or
liabilities to any bidder or buyer, and without limiting the generality of the foregoing, shall bear
no liability to any party as a result of any breaches of representations, warranties or legal duties
or responsibilities of Auctioneer/Auction

*Unborn Foal: 42 days confirmed pregnancy which is insurable.

Warranty of Title and Possession:
a) Consignor warrants that he/she/they has (have) proper documentation to register the
unborn foal/horse and that the unborn foal/horse will be available to Buyer free of all
liens or encumbrances. Consignor makes no other warranties or representations
whatsoever which extend beyond the description on the face hereof and specifically does
not warrant the fitness, merchantability, suitability or quality of the resulting foal. There
is no live foal guaranteed. The unborn foal is guaranteed for a 42 days pregnancy*, after
that time the buyer may insure the unborn foal for himself.
b) Pregnancy Exam: Consignor agrees to have a pregnancy exam performed, at their
expense, on the Mare carrying the unborn foal and must provide a certified pregnancy
certificate to Auction/Auctioneer by Date required. A licensed veterinarian must
perform examination.

Warranty of Pedigree:
Consignor warrants to auction as well as the Buyer for both its own benefit and that of the
purchaser of the unborn Foal that the Sire and Dam of the Unborn Foal is true and correct as
stated in the catalog

Warranty of Registration:
Consignor understands and agrees that Auction/Auctioneer is not responsible for registration or
parentage testing thereof. Consignor further agrees to provide any and all documentation
necessary to register the resulting foal as described in sale catalog. Registration of the resulting
unborn foal purchased is the responsibility of the purchasing party.

Registration Papers:
Ability to register the foal’s papers shall not pass to the buyer until the Unborn Foal has been
paid for in full.

Soundness:
It is the responsibility of the consignor to disclose any/all known health and/or soundness issues
(including but not limited to fertility) to Auctioneer/Auction by Date. Consignor agrees to be
the sole guarantor of the accuracy of all this information regarding the horse herein consigned.
Consignor agrees to review such information prior to the auction and to report to
Auctioneer/Auction prior to the auction any inaccuracies or omissions which may be material
and further agrees to hold Auction/Auctioneer harmless from any claims arising out of any such
inaccuracies or omissions.

Warranty of Fertility:
If the consigned Horse is a mare born in the calendar year three or more years prior to the
calendar year of the sale, Consignor warrants to Auctioneer/Auction, that the mare is
reproductively sound and will provide documentation to substantiate this.

Warranty of Title and Delivery:
Consignor agrees upon the close of a successful auction, the title of said Horse’s original
registration certificate, properly endorsed to permit transfer of registration to Buyer. Consignor
warrants that upon sale of the Horse, Consignor shall deliver possession free of any liens and
encumbrances. This will include any resulting foals.

No Other Warranty:
Unborn Foal/Horse is sold “AS IS”. Neither Auctioneer/Auction nor any other person is
authorized to make representations or warranties about any Unborn Foal/horse. No oral or
written statement constitutes a warranty, and all such oral or written statements, other than those
contained herein, shall not be relied upon by any bidder or buyer, and are not part of any contract
of sale.

Title and Delivery:
Documentation to register the Unborn Foal passes to the Buyer at the fall of the hammer, subject
to payment of all or such part of the purchase price. All risk of injury to the Mare carrying said
Unborn Foal becomes the buyer’s risk upon the fall of the hammer. The Buyer shall present
himself to sign the Buyer’s acknowledgment form immediately upon the fall of the hammer, and
will arrange to make full payment within (1) business day after the auction. The right of a
successful bidder to purchase, as determined by the auctioneer, is not impaired in the event that
an Acknowledgment of Purchase is signed by another bidder.

Limitation of Liability:
The Buyer’s exclusive remedy for any breach shall be limited to the return of said Unborn
Foal/Horse (as described in the following paragraph) and repayment of the purchase price
received by the Consignor, less commissions and cost of sale. The liability of the Consignor or
the Consignor’s Agents with respect to any sale or anything done in connection therewith,
whether arising out of contract, negligence, strict liability warranty or otherwise, shall not exceed
the total purchase price, less commissions and cost of sale, of the Unborn Foal/Horse upon which
has been received by the Consignor. Except to the extent set forth in this and the following
paragraph, the Buyer shall not under any circumstances be entitled or, nor be able to, recover any
damages, including but not limited to consequential damages, incidental damages, special or
general damages or loss of other property, or loss resulting from any general or particular
requirements and needs of the buyer.

Catalog:
Every effort has been made to assure the correctness of the catalog, but Auctioneer/Auction are
not responsible for errors or omissions. All corrections made to the catalog at the time of the sale
from the auctioneer’s podium shall supersede the catalog.

Bidding:
The highest bidder recognized by the auctioneer shall be the Buyer. Bids tendered after the fall
of the hammer are not valid grounds for any dispute. If any dispute arises between two or more
bidders, or in the event of doubt on the auctioneer’s part as to the validity of any bid, the
auctioneer will have the final discretion either to determine the successful bidder, or to re-offer
and resell the Unborn Foal/Horse in dispute. The auctioneer’s sale record is conclusive and is not
subject to challenge. The auctioneer reserved the right to reject any bid.
There are reserves on some lots in the sale.

Bidder Registration:
Auctioneer/Auction encourages everyone to pre-register for auction by visiting our website
enter website.

Deliver to Buyer:
No Unborn Foal/Horse shall be delivered to the Buyer until payment in full has been received in
full by Auctioneer/Auction by one of the means set forth below.

Buyer’s Payment:
The Buyer shall pay for the Unborn Foal/Horse within (3) business day of the conclusion of the
sale, and shall pay Auctioneer/Auction the total purchase price plus an additional 5% Buyer’s
premium fee (or as described in terms) by one or more of the following means: U.S. currency,
cashier’s check, traveler’s check, personal check, Credit Card or bank wire. There will be a 4%
user fee on all Credit Cards (we accept Visa, MasterCard or American Express), subject to
clearance prior to the release of the Embryo Right/Unborn Foal/Horse.

*Notice to all winning bidders… There is an additional 5% buyer’s premium fee due at the time
of purchase added to each lot.

Default Purchase:
If any person shall purchase a lot and fail to pay for it in the manner described above,
Auctioneer/Auction shall have, in additional to all other legal rights, the right to resell the lot,
or at their option, bring an action for specific performance, in which event the defaulting Buyer
agrees to pay all costs of each suit, together with all reasonable attorney’s fees and costs. In the
event of a resale, the defaulting Buyer agrees to pay all costs of resale, plus any deficiency
between the original total purchase price and the total purchase price upon resale.

Additional Expenses:
It’s understood that at the fall of the hammer, the winning bidder takes all ownership of the
Unborn Foal/Horse’s expenses that occur with the related Unborn Foal/Horse. All expenses are
those of the new owner of the Unborn Foal/Horse.

Law and Taxes:
These Terms and Conditions of Sale shall be construed and governed by the laws of the State of
Texas in effect as of the date of the sale, and any dispute shall be resolved pursuant to the laws of
the State of Texas. Jurisdiction and venue shall be in McLennan County, Texas. Each Buyer
agrees to pay any city, county or state sales, transaction, privilege or use tax which may be
claimed because of the Buyer’s failure to qualify for an exception. Applicable Texas State sales
tax rulings and state statutes may apply.

Withdraw Rights:
Auctioneer/auction reserves the right to withdraw any Unborn Foal/Horse from the sale without
liability to anyone. Consignor will not withdraw the consigned Unborn Foal/Horse from the
Auction except with the express written consent of the auction management. Consignor shall be
liable for all consignment fees, commissions, and other expenses incurred. The
Auctioneer/Auction may withdraw consignments from the sale without liability to anyone. If the
mare should abort the consigned unborn foal before the auction, the consignor may withdraw
from the auction without penalty.

Agent Commissions:
Agent’s will be paid a commission by Consignor for representing their client on their purchases
if the Agent is registered with the Auctioneer/Auction. The Agents and their owners must
register or no commissions will be paid.

*Auctioneer/Auction are only organizers of the event. The main function of the
Auctioneer/Auction is to connect the Sellers with Buyers, fitting any and all legal liabilities in
the greetings of the Terms and Conditions of purchases and sales of this auction are solely and
entirely on Sellers and Buyers.

INSURANCE:
Immediate full mortality insurance coverage is effective upon the fall of the hammer, for the
amount of the total purchase price. The insurance is arranged by sale management, with a
ruputable insurance agency, and will remain in effect until the purchaser signs the contract, or
until midnight of the first business day after the sale, whichever occurs first, by which time it is
the obligation of the new owner to arrange permanent insurance. All coverages are subject to the
terms, conditions and exclusions of the actual policy issued.