Custom Semen Service Agreement

3. Payment Terms
   •  Services provided by SBS will be billed at the rates published in SBS’ Fee Schedule in effect at the time the services are provided, which Fee Schedule is incorporated by reference herein. Fees are due for services provided regardless of the results of those services. SBS reserves the right to revise the Fee Schedule at the beginning of each breeding season, and at any time upon notice from SBS to the Owner for any Horse requiring special services or management or presenting particular handling problems. Owner will be invoiced at least bi-weekly or upon completion of services, whichever is earlier. Invoices are due upon receipt. Any balance not paid within 30 days of the date of invoice will accrue interest from the 30^th day at a rate of one and one-half percent (1 1/2%) per month.
4. c) Frozen semen storage is billed on a quarterly basis. You will be billed for the number of doses that are in inventory on the first day of the quarter. Any increase in the number of doses in storage during the quarter will not be billed until the first day of the following quarter. Likewise, there will be no refunds for any decreases in the number of doses in storage during the quarter.
5. d) Owner hereby grants to SBS a security interest in the semen collected and/or stored by SBS to secure any amounts due for services provided for care of the Horse(s), collection, testing, processing and storage and distribution of semen. The failure of Owner to pay amounts due within 60 days of the date of invoice, and failure of Owner to satisfy Owner’s obligations to SBS within five (5) days of notice from SBS of Owner’s default constitutes Owner’s permission for SBS to sell any or all of Owner’s semen in SBS’ custody to offset amounts due. Sale of semen may be by public or private sale, to one or more purchasers, at terms determined by SBS in its discretion, and Owner shall execute all breeding certificates and other necessary documentation to register foals resulting from semen sold by SBS pursuant to this Section. From any sale proceeds, SBS is entitled to recover invoiced amounts due and unpaid, interest thereon as set out in Section 3(b) above, as well as any costs of collecting the above amounts. SBS is not obligated to sell semen or to obtain any particular price for the semen and may also destroy any stored semen for which storage fees are unpaid. Any amounts not recovered by SBS will remain due and payable, and interest will continue to accrue thereon until paid in full.

Check one or both boxes as appropriate regarding the following:

Horse Information

Provide information for at least one horse, or a maximum of four.

Desired Services

Select Yes or No for all questions.

If the Horse(s) require emergency medical or farrier care, SBS agrees to attempt to contact Owner before obtaining such care. However, if SBS is unable to contact Owner within a reasonable period of time, dependent upon the nature of the emergency, then SBS shall be authorized to obtain whatever emergency medical or farrier services it deems to be in the Horse(s) best interests. Owner shall be liable for the cost of all farrier or veterinary services obtained while the horse(s) is/are boarded at SBS.

“Clean out” collection, test freezing and quality analysis of each Horse’s semen is a prerequisite to provision of further services by SBS. Upon conclusion of the test freezing and analysis thereof, SBS will provide to and discuss with Owner the results of test freezing by various protocols and the implications for breeding the Horse by frozen semen. Should the results of the test freezing and thawing analysis fail to meet SBS quality standards, SBS reserves the right to decline to collect and freeze semen for distribution. SBS also reserves the right to refuse to collect any Horse that exhibits behavior that is in SBS’ opinion unacceptably unruly or unsafe even with knowledgeable professional handling.

3. Payment Terms:
   •  Services provided by SBS will be billed at the rates published in SBS’ Fee Schedule in effect at the time the services are provided, which Fee Schedule is incorporated by reference herein. Fees are due for services provided regardless of the results of those services. SBS reserves the right to revise the Fee Schedule at the beginning of each breeding season, and at any time upon notice from SBS to the Owner for any Horse requiring special services or management or presenting particular handling problems.
   • Owner will be invoiced at least bi-weekly or upon completion of services, whichever is earlier. Invoices are due upon receipt. Any balance not paid within 30 days of the date of invoice will accrue interest from the 30^th day at a rate of one and one-half percent (1 1/2%) per month.
   • Frozen semen storage is billed on a quarterly basis. You will be billed for the number of doses that are in inventory on the first day of the quarter. Any increase in the number of doses in storage during the quarter will not be billed until the first day of the following quarter. Likewise, there will be no refunds for any decreases in the number of doses in storage during the quarter.
   • Owner hereby grants to SBS a security interest in the semen collected and/or stored by SBS to secure any amounts due for services provided for care of the Horse(s), collection, testing, processing and storage and distribution of semen. The failure of Owner to pay amounts due within 60 days of the date of invoice, and failure of Owner to satisfy Owner’s obligations to SBS within five (5) days of notice from SBS of Owner’s default constitutes Owner’s permission for SBS to sell any or all of Owner’s semen in SBS’ custody to offset amounts due. Sale of semen may be by public or private sale, to one or more purchasers, at terms determined by SBS in its discretion, and Owner shall execute all breeding certificates and other necessary documentation to register foals resulting from semen sold by SBS pursuant to this Section. From any sale proceeds, SBS is entitled to recover invoiced amounts due and unpaid, interest thereon as set out in the second bullet point above, as well as any costs of collecting the above amounts. SBS is not obligated to sell semen or to obtain any particular price for the semen and may also destroy any stored semen for which storage fees are unpaid. Any amounts not recovered by SBS will remain due and payable, and interest will continue to accrue thereon until paid in full.

4. Shipment of Semen: For any semen stored at SBS, it is the responsibility of the Owner to provide to SBS the name and delivery address for any recipient to which semen is to be shipped, certify that the recipient has met its contractual and financial obligations to the Owner for breeding to the Horse, indicate the quantity of semen to be shipped and the requested shipment date. SBS will make best efforts to meet shipment requests, but shall not be responsible for factors beyond its control, including but not limited to weather related delays, holidays, power failures, labor disputes and other impediments to shipment. Other than requiring the Owner’s consent to semen shipments, SBS has no duty to verify the eligibility of any recipient to receive the semen, the validity of the address provided, the recipient’s ability to appropriately handle or store the semen or to use it for insemination, any limit on the number of mares a recipient may breed with the semen shipped, or enforcement of the recipient’s obligation to destroy or return unused semen.

5. Waiver of Warranties: Owner realizes that regardless of initial test results, there are many factors that can affect a horse’s fertility at any given time, many out of control of either SBS or the Owner, and that there is no guarantee that collections of semen over time will produce any particular quantity or quality of semen or consistent conception rates. SBS makes no guarantee or warranty as to the fertilizing capacity of any semen processed, stored or distributed under this agreement. Owner hereby waives any warranties with regard to quantity, quality, or viability of semen, including both express warranties and those implied by law, and SPECIFICALLY WAIVES ANY WARRANTIES WITH REGARD TO MERCHANTABILITY of the semen collected, processed and stored by SBS, OR FITNESS OF PRODUCTS PRODUCED AT SBS FOR EITHER THE OWNER’S OR THE OWNER’S CUSTOMERS’ PARTICULAR PURPOSES.