DeFuniak Florida

Page 2

I agree to pay a stud fee of $___________on the day the mare LEAVES the
ranch. Plus, the mare care.

7. It is agreed that the mare owner shall be liable for necessary veterinary services
rendered to the mare and/or foal as Sandlin Farms Inc., its agents, or employees shall solely
determine. Charges for veterinary services shall also be due and payable monthly and
before re-delivery of the mare and/or foal to the owner.

8.Sandlin Farms Inc., agrees to exercise reasonable diligence to settle the mare up to and
including the 31st day of July, 2006

9. The mare is to be pregnancy checked at 21 days after breeding but no later than 90 days
by a qualified Veterinarian. If mare proves not in foal, and a satisfactory veterinary certificate to
that effect is presented, arrangements shall be made for the immediate return of mare for
rebreeding. If this occurs after the Stallion Book is closed the mare can be returned the
following year.

10. In the event that the mare aborts or if the foal does not stand and nurse, and the stud
fee, veterinary charges and mare care charges are fully paid, it is agreed that the owner
may return the mare for breeding during the following breeding season and no stud fee
will be charged for subsequent breeding. To be entitled to such subsequent breeding, the
owner must deliver to Sandlin Farms Inc., certification by a licensed Veterinarian attesting that
the mare aborted or that the foal failed to stand and nurse, and such delivery shall be
made within ten (10) days of the date that the mare aborts or the foal is born. This return
privilege is void if the mare is placed back in performance training and/or showing after
breeding. The return privilege is not transferable without permission of Sandlin Farms Inc..