Conditions of Sale

This sale is conducted in accordance with, and all acts of interested parties and/or claims by them shall be governed, by the following

FIRST - APPLICABLE LAW, DEFINITIONS AND NOTICES: All consignors, agents, bidders/buyers, or interested parties, and all sales, are subject to, and governed by, these Conditions of Sale ("CONDITIONS"). All horses in this sale are offered and sold according to the internal laws, and procedural rules, of the state of California, without regard to conflict of law principles. The Glossary of Definitions, and all Notices (including but not limited to "Registration and Payment Procedures" and "Change of Ownership") contained in this Catalog are incorporated into, and are an integral part of these CONDITIONS.

SECOND - THERE ARE NO IMPLIED WARRANTIES; ONLY LIMITED WARRANTIES GIVEN BY CONSIGNOR: THERE ARE NO EXPRESS OR IMPLIED WARRANTIES OR REPRESENTATIONS GIVEN BY BARRETTS (OR ANY OF ITS OWNERS, EMPLOYEES, REPRESENTATIVES, AGENTS, SPONSORS OR INDEPENDENT CONTRACTORS), THE AUCTIONEER, ANY CONSIGNOR OR ANYONE ELSE CONCERNING OR PERTAINING TO ANY HORSE OFFERED FOR SALE OR SOLD IN THIS SALE, INCLUDING, BUT NOT LIMITED TO, AS TO THE SOUNDNESS; CONDITION; SUITABILITY TO BE TRAINED, RACED OR BRED; PREGNANCY; BREEDING STATUS; BREEDING QUALITIES; FERTILITY; MERCHANTABILITY; FITNESS FOR ANY PARTICULAR PURPOSE; OR ANY OTHER QUALITY OR ATTRIBUTE OF ANY HORSE. ALL HORSES ARE OFFERED AND SOLD "AS IS" AND WITH ALL FAULTS AND DEFECTS, EXCEPT FOR ANY APPLICABLE LIMITED WARRANTIES GIVEN BY THE CONSIGNOR THAT ARE SET FORTH IN CONDITIONS EIGHTH, NINTH, TENTH, ELEVENTH, TWELFTH OR THIRTEENTH HEREOF. BUYER AND CONSIGNOR ARE BOUND BY ALL ANNOUNCEMENTS FROM THE AUCTION STAND AND ALL STATEMENTS MADE IN ANY OFFICIAL BARRETTS PUBLICATION. No promise, representation or statement other than those contained in, or incorporated into, these CONDITIONS, or in an announcement from the auction stand authorized by these CONDITIONS, shall be effective or relied upon by buyer in connection with buyer's purchase of any horse. All announcements from the auction stand made on behalf of the consignor may be subject to review by Barretts. Barretts shall have the right, in its sole and absolute discretion, to refuse to make any announcement requested by the consignor or any other person, and Barretts shall have no responsibility or liability for the refusal or failure to make any announcement, or for the timing or contents of any announcement made. Buyer acknowledges and agrees that there are numerous conditions, injuries, diseases, medical procedures, and other matters affecting horses, including, but not limited to, the horses' suitability to be trained to race, to be raced or to be bred, for which no warranty is provided in these CONDITIONS. The identity of the owner of any horse being sold is not warranted under these CONDITIONS. The duties and obligations of Barretts to buyer and consignor are strictly limited to those expressly imposed upon Barretts by these CONDITIONS. All other duties and obligations, including, but not limited to, any fiduciary duties or other duties which might otherwise be imposed upon Barretts by operation of law or otherwise, are hereby expressly disclaimed, waived and relinquished by buyer and consignor.

THIRD - BIDDING PROCEDURES: Consignors, including their disclosed and undisclosed agents, may bid on the horses they offer for sale, unless otherwise announced from the auction stand or prohibited by law. Consignors have the right to set reserve bids and the right to conduct buy-bidding on any horse they offer for sale. All bidders must be at least 18 years of age and must have in their possession written proof of age and identity. There shall be an upset price with respect to each horse offered for sale. If an opening bid of the upset price is not immediately forthcoming to the auctioneer's call, the horse shall be led out of the sale ring unsold. Minimum increases in bidding are: $100 until the bid reaches $20,000; $500 (or greater amount established by the auctioneer) on bids over $20,000. The person making the highest bid recognized by the auctioneer shall be the buyer, who shall forthwith identify and present himself or herself to the auctioneer or Barretts as the buyer, and shall immediately fully complete and sign the Barretts' form of Acknowledgment of Purchase. In the event the person making the highest bid recognized by the auctioneer fails or refuses to immediately identify and present himself or herself, complete and sign the Acknowledgment of Purchase or immediately pay for a horse upon request: (1) Barretts may elect, in its sole and absolute discretion, to either re-enter the horse at the same or next available sales session, withdraw the horse entirely from the sale, or resell the horse at public or private sale without prior notice, and Barretts shall have no liability for such election or action; and (2) such person shall be liable for the amount of the hammer price (or any deficiency if the horse is resold), plus any taxes and any other damages in an arbitration brought by consignor. In the event that a person other than buyer signs the Acknowledgment of Purchase, such action shall not give any such person any right, title, or interest to the horse, and the same shall not alter any of buyer's obligations under these CONDITIONS. Any person signing an Acknowledgment of Purchase, including as an officer, director, manager, employee or agent of buyer, is jointly and severally liable with buyer to perform all of the obligations of buyer under these CONDITIONS, unless the buyer named on the Acknowledgment of Purchase has prior thereto signed and filed with Barretts for this sale a Barretts' agent authorization form (or personal letter of authorization containing all pertinent information), affirmatively accepted in writing by Barretts in its sole and absolute discretion, designating the person signing the Acknowledge of Purchase as buyer's agent. Prior acceptance or acquiescence by Barretts shall not be effective or create any precedent for this sale and in the event that Barretts accepts an agent authorization form or letter which is later found to be invalid, such acceptance shall not be effective for any purpose whatsoever. Buyer, consignor and all attendees at the sale each authorize Barretts to utilize in Barretts' advertising or promotions, his or her name, photograph, likeness and related information or the name, photograph, likeness and related information of any horse offered or purchased, without further authorization or compensation.

FOURTH - BIDDING DISPUTES: The auctioneer shall decide all disputes over, and all other matters pertaining to, bidding, and the auctioneer's decision on all such matters shall be final and binding. Barretts or the auctioneer shall have the absolute right to refuse the opportunity of any person to bid or to refuse or reject any or all bids. Bids tendered after the fall of the hammer are not valid. Bids received by bid spotters have the same status as bids received by the auctioneer. If in the case of a dispute, bidding is reopened by the auctioneer for advance bids, and if there is no advance bid, the horse is sold to the person whom the auctioneer previously recognized as making the last bid. Advance bidding shall be restricted to the disputing parties, unless the bid is reduced below the level of the last recognized bid at commencement of the dispute, in which case bidding shall be reopened to all.

FIFTH - TITLE; ASSUMPTION OF RISK; RELEASE; INDEMNIFICATION: (A) Title of a horse immediately passes to buyer at the fall of the hammer for the horse, at which time buyer shall be solely liable for the care, custody, control and security of the horse and for any and all expenses relating to the horse.

(B) Buyer assumes all risk of injury, illness or death of the horse purchased, commencing from the fall of the hammer for the horse. Buyer releases, discharges, waives and relinquishes any and all claims, liabilities, damages or losses of any nature whatsoever buyer has, may have or hereafter may have against Barretts, the owners and/or operators of the sales facilities, premises or grounds, and each of their respective directors, officers, partners, shareholders, owners, employees, representatives, agents, sponsors or independent contractors (jointly and severally the "Barretts Released" throughout these CONDITIONS) from, or arising out of, any description, identification, accident, sickness, disease, theft or death of any horse (and any in utero foal) purchased wherever or however the same may occur, including but not limited to, any description, identification, injury, accident, sickness, disease, theft or death by reason of or caused by, whether in whole or in part, any alleged passive or active negligent or grossly negligent act, omission or conduct by or of any of the Barretts Released.

(C) Buyer agrees to defend, indemnify or hold the Barretts Released harmless from any claim, liability, damage or loss caused or contributed by, whether in whole or part, any horse purchased, arising after the fall of the hammer, including but not limited to, all reasonable expenses and attorney's fees incurred by the Barretts Released in defending all such claims, liabilities, damages or losses. The defense of the Barretts Released shall be with counsel chosen by the Barretts Released, but paid for by buyer. The Barretts Released shall be defended, indemnified and held harmless regardless of whether any claim, liability, damage or loss is caused or contributed to, by the passive or active negligent or grossly negligent act, omissions or conduct by or of any of the Barretts Released.

SIXTH - PAYMENT; DELIVERY; SECURITY INTEREST; DEFAULTING BUYERS:(A) Buyer shall make payment, without offset, for the full purchase price, plus any applicable sales or use tax, solely to Barretts, in the form of U.S. currency or equivalent acceptable to Barretts in its sole and absolute discretion. Remittances to any person or entity other than Barretts shall not constitute payment. Unless credit has been granted to buyer by Barretts for this sale, buyer shall fully pay for any horse purchased no later than thirty (30) minutes after the conclusion of the sale session at which the horse was purchased. In the event buyer does not pay for a horse in full when payment is due, buyer shall pay Barretts a finance charge, on all unpaid amounts, of one and one half percent (1 1/2%) or the maximum legal rate, whichever is higher, per month beginning on the date of purchase, together with all reasonable attorneys' fees and costs incurred by Barretts in collecting any such unpaid amounts. A horse shall be delivered to buyer only by means of a Barretts' "delivery order" and no "delivery order" shall be issued, and no horse shall be removed from Barretts' sales premises, until buyer fully pays for the horse, or otherwise settles buyer's account to Barretts' satisfaction in Barretts' sole and absolute discretion. Buyer must take possession of the horse no later than noon on the day following the sale of the horse and shall remove the horse from Barretts' sales premises promptly thereafter. In the event buyer fails to do the foregoing, Barretts may, in its sole and absolute discretion, but is not obligated to, maintain, treat, care for or board the horse at locations selected by Barretts, all at buyer's sole expense and risk and without liability whatsoever to Barretts, and buyer shall pay Barretts all costs and expenses incurred by Barretts relative to the horse, from the fall of the hammer. Buyer agrees that no bailment by Barretts is established with respect to any horse purchased and that in all actions against Barretts, buyer shall have the burden of proof of establishing any claim, liability, damage or loss. Buyer agrees that consignor holds any purchased horse, from the fall of the hammer for the sale of the horse until buyer takes delivery and possession of the horse, gratuitously and solely as an accommodation to buyer.

(B) Buyer grants to Barretts a "Security Interest" in all horses purchased by buyer, in any Jockey Club Registration or Stallion Service Certificate for such horses, and any foals, products or proceeds of such horses, in the amount of any outstanding sum owed to Barretts, whether for this sale or otherwise, and buyer authorizes Barretts to sign any "Financing Statement" or "UCC-1" form as buyer's agent.

(C) Time is of the essence as to all of buyer's obligations under these CONDITIONS, including, but not limited to, making payment, taking delivery and possession of horses, removing horses from Barretts' sales premises, and asserting warranty and arbitration claims. Barretts shall determine if a warranty claim has been timely and properly made and that determination shall be final and binding, absent fraud or bad faith of Barretts. Should buyer fail to comply in any respect with buyer's obligations under these CONDITIONS, Barretts may, in its sole and absolute discretion, pursue any remedy available against buyer, including, but not limited to, taking possession of any horses (and/or their foals) purchased by buyer, taking and maintaining possession of any Jockey Club Registration or Stallion Service Certificates for any such horses, or reselling any such horses at public auction or by private treaty, without prior notice, for account of buyer, with buyer remaining liable for any deficit, and for all costs of maintenance and resale, together with all reasonable attorneys' fees, and legal or other costs. Barretts shall have the right to withhold delivery of all Jockey Club Registration and Stallion Service Certificates for any horse purchased until such time as buyer's account with Barretts, whether for this sale or otherwise, has been paid in full. Barretts may, in its sole and absolute discretion, pay all or part of the purchase price of a horse to a consignor despite any default by buyer (and in such event, the amount paid by Barretts shall be owed by buyer to Barretts) or to withhold such payment from consignor. Buyer shall pay to Barretts a seventy-five dollar ($75.00) fee for each check returned unpaid for any reason.

SEVENTH - RIGHT OF INSPECTION: Buyer acknowledges that buyer has had prior to purchase, and will have after the fall of the hammer, to the full extent desired, an opportunity to inspect and examine, by a veterinarian or otherwise, each horse purchased; the medication report, if any, in the possession of the official state sale veterinarian; radiographs or other information, if any, deposited in Barretts' Repository; and the horse's Jockey Club Registration or Stallion Service Certificate. Buyer further acknowledges that buyer is encouraged to take advantage of such opportunity prior to purchase and after the fall of the hammer, including, but not limited to, specifically ascertain whether consignor has or has not complied with the limited warranties provided in these CONDITIONS. Barretts will not review, and shall have no liability for, any radiographs (including any deposited in Barretts' Repository) or any health, immunization, medication or other records, or the Jockey Club Registration or Stallion Service Certificate for any horse sold, the authenticity, sufficiency, quality, completeness and accuracy of the same shall be the sole responsibility of consignor. All items, including radiographs and videotapes, placed by consignor in the Barretts' Repository are the sole property of consignor (or the consignor's veterinarian, as the case may be). However, Barretts may elect to hold any or all such items on behalf of consignor in the event of a dispute or claim concerning a horse and consignor shall have the right to pick up at Barretts sales premises such items upon the resolution of the dispute or claim. Barretts shall be entitled to destroy or otherwise dispose of, without any liability, all items, including radiographs and videotapes, placed in Barretts' Repository 30 days after the end of the sales session at which a horse was sold.

EIGHTH - LIMITED WARRANTIES AS TO SOUNDNESS-48 HOURS: (A) Unless otherwise announced from the auction stand, or stated in an official Barretts publication, consignor warrants for any horse sold by consignor that: (1) the horse's sexual description as set forth in the Catalog is accurate; (2) the horse at the time of sale has no impairment of vision or injury to the eye that materially affects its suitability for its intended purpose; and (3) with respect to any horse sold after July 1 of its yearling year (breeding stock excepted) that: (i) the horse, on laryngoscopic examination, does not at the time of sale have any defect of wind materially affecting its suitability for racing; or (ii) the horse does not at the time of sale have any injury to or disease of the bone structure which will more likely than not have a material, chronic and adverse effect upon its suitability to be trained for racing.

(B) Any horse that is not as warranted as provided in (A) of this CONDITION may be returned to consignor pursuant to CONDITION FOURTEENTH, provided Barretts actually receives written notification, and all supporting documentation of buyer's claim, including, but not limited to, a veterinary certificate, not later than FORTY-EIGHT (48) hours after the end of the sales session at which the horse was sold and in the event buyer fails to do so, buyer shall have no right to make any claims for such warranties. In all events, the warranties under this CONDITION shall immediately terminate, and buyer shall have no right to make any claim under them, if the horse is removed from Barretts' sale premises; the horse is used "under tack" after buyer or any representative of buyer knew, or should have known, any fact or circumstance indicating that the horse was not as warranted in this CONDITION; or if the horse starts in a race.

NINTH - RADIOGRAPHS DEPOSITED-LIMITED BONE WARRANTY FOR "TWO YEAR OLDS IN TRAINING" SALE SESSIONS-48 HOURS: The bone warranty under (A)(3)(ii) of CONDITION EIGHTH for any two year old in training sold at a sale session exclusively for two years old in training is hereby superseded and replaced as follows: In the event that an injury to or disease of the bone structure of a two year old in training sold at a sale session exclusively for two years old in training is depicted in radiographs of diagnostic quality deposited in Barretts' Repository, consignor warrants that the two year old in training does not at the time of sale have an injury to or disease of the bone structure which will to a MEDICAL CERTAINTY have a material, chronic and adverse effect upon its suitability to be trained for racing. To the extent any warranty contained in this CONDITION applies, its supersedes and replaces in its entirety the warranty provided in (A)(3)(ii) of CONDITION EIGHTH; however, all other provisions of CONDITION EIGHTH, including (B), apply unchanged. In the event that for any reason the warranty contained in this CONDITION does not apply, including, but not limited to, the absence of diagnostic quality radiographs, all provisions of CONDITION EIGHTH apply unchanged.

TENTH - OTHER LIMITED WARRANTIES AS TO SOUNDNESS - 72 HOURS (A) Unless otherwise announced from the auction stand, or stated in an official Barretts publication, consignor warrants for any horse sold by consignor that: (1) the horse at the time of sale is not a "cribber;" (2) the horse is at the time of sale not a "wobbler;" and (3) the horse has never been nerved.

(B) Any horse that is not as warranted as provided in (A) of this CONDITION may be returned to consignor pursuant to CONDITION FOURTEENTH, provided Barretts actually receives written notification, and all supporting documentation of buyer's claim, including, but not limited to, a veterinary certificate, not later than SEVENTY TWO (72) hours after the end of the sales session at which the horse was sold and in the event buyer fails to do so, buyer shall have no right to make any claims for such warranties. In all events, the warranties under this CONDITION shall immediately terminate, and buyer shall have no right to make any claim under them, if the horse is not located within seventy five (75) miles of Barretts' sales premises at the time any claim is made and does not remain within said seventy five (75) miles through and including the making of any arbitration determination under CONDITION FIFTEENTH (B) with respect to such claim; the horse is used "under tack" after buyer or any representative of buyer know, or should have known, any fact or circumstance indicating that the horse was not as warranted in this CONDITION; or if the horse starts in a race.

ELEVENTH - LIMITED WARRANTIES FOR BROODMARES-24 HOURS: Unless otherwise announced from the auction stand, or stated in an official Barretts publication, consignor warrants for any broodmare sold by consignor that: (1) the pregnancy status as stated in the Catalog is accurate as of the time of sale; and (2) if the broodmare is not in foal at the time of sale, consignor warrants that the broodmare is suitable for mating, as that term is defined in the Ethical and Professional Guidelines issued by the American Association of Equine Practitioners ("AAEP Guidelines"). Any broodmare that is not as warranted may be returned to consignor pursuant to CONDITION FOURTEENTH, provided that buyer makes a claim in writing, accompanied by a veterinary certificate of a reproductive examination of the broodmare conducted in conformity with AAEP Guidelines substantiating the claim, which are actually received by Barretts not later than TWENTY-FOUR (24) hours after the end of the session in which the broodmare is sold and prior to its removal from Barretts' sales premises, and in the event buyer fails to do so, buyer shall have no right to make any claim under this CONDITION and the warranty under this CONDITION shall terminate. Any changes in the pregnancy or breeding status of the broodmare after the fall of the hammer for the sale of the broodmare shall preclude any claims under this CONDITION. Unless otherwise announced from the auction stand, any contractual agreement between an owner of a broodmare sold in this sale and an owner of a stallion to which the broodmare has been bred, including, but not limited to, agreements regarding the possible return to any stallion to which the broodmare has been bred, or the possible refund of any stud fee, is not transferred to the buyer of the broodmare. (See Twelfth Condition (D)(3) regarding limited warranties relative to certain broodmare surgeries.)

TWELFTH - OTHER LIMITED WARRANTIES: (A) Unless otherwise announced from the auction stand, or stated in an official Barretts publication, consignor warrants for any horse sold, each of the following matters: (1) the buyer will upon purchase own 100% of the horse free and clear of all liens, encumbrances, leases or other charges (collectively "Liens"), other than the security interest granted in favor of Barretts pursuant to (B) of CONDITION SIXTH; (2) the identity of the horse (and any in utero foal), as stated in the Catalog, is accurate; (3) the horse's pedigree, produce record, race record, foaling date, and breeding date (in the case of a broodmare), as stated in the Catalog, are materially accurate; (4) the horse's foaling place and eligibility for incentive, engagement and similar matters, as stated in the Catalog, are accurate; (5) the horse's written health or immunization records, to the extent provided by the consignor to Barretts and either announced from the auction stand or made available for buyer's inspection by Barretts, are accurate; (6) the horse's medication report in the possession of the official state sale veterinarian, pursuant to the California Horse Racing Board regulations, is complete and accurate; and (7) the horse is at the time of sale not on any Starter's, Steward's or Veterinarian's List at any licensed race course. It is the sole responsibility of consignor to verify all information that is the subject of this CONDITION. Barretts shall have no responsibility or liability for any of the information that is the subject of this CONDITION, or for any other information provided by Barretts regarding any horse offered for sale or sold in this sale, including, but not limited to, any information that was procured, obtained or reviewed by Barretts.

(B) Any horse that is not as warranted as provided in (A) of this CONDITION may be returned to consignor pursuant to CONDITION FOURTEENTH, provided that buyer makes a claim in writing, accompanied by all supporting documentation, actually received by Barretts promptly upon discovery of the inaccuracy of the information by buyer or any representative of buyer, and in the case of the matters warranted in (A)(3) through and including (A)(7) of this CONDITION, such claim and all supporting documentation must be actually received by Barretts, in all events, not later than TWENTY-ONE (21) days after the end of the session at which the horse was sold. In the event that buyer fails to comply with the foregoing sentence, buyer shall have no right to make any claims under this CONDITION and the warranties of this CONDITION shall terminate.

(C) Consignor shall have the option to cure any defect of title or claim of Liens, and if promptly and completely cured, buyer shall be barred from making any claim in connection therewith. With respect to any claim that the horse is not eligible as warranted for any incentive program, engagement or similar matter, consignor shall have the option to promptly establish such eligibility, and if promptly and completely established, buyer shall be barred from making any claim in connection therewith. Eligibility for stakes engagements, incentive programs and similar matters are as of the date of sale only, and all payments for such eligibility which are due after the date of sale are solely the responsibility of buyer, whose obligation it is to immediately determine when such payments are due and to notify the proper organization of new ownership in order to receive direct billing. Information contained in the Catalog concerning the horse's foaling place does not mean that the horse is eligible for races restricted to horses bred and/or foaled in that particular place and does not mean that the horse is eligible for any award programs on account of foaling in such place.

(D) Unless otherwise announced from the auction stand, or disclosed by a certificate placed in Barretts' Repository (for those sales utilizing a Repository), consignor warrants that consignor does not have actual knowledge (or constructive knowledge from documents deposited in a repository in connection with a public auction at which a horse was purchased by consignor) of the following matters: (1) for horses that are two years of age or less at the time of sale, that the horse has undergone invasive joint surgery or surgical intervention of the upper respiratory tract; (2) for all horses, that the horse has undergone either (i) abdominal surgery of any type within two (2) calendar years preceding the sale of the horse or (ii) any resection of an abdominal organ (partial or complete) at any time, except to repair a ruptured bladder in a newborn foal; and (3) for broodmares, that the broodmare has undergone within two (2) calendar years preceding the sale of the broodmare: (i) a caesarean section delivering a fetus, (ii) surgery involving the cervix, (iii) an urethral extension or (iv) the removal of an ovary. Any horse that is not as warranted may be returned to consignor pursuant to CONDITION FOURTEENTH, provided that buyer makes a claim in writing, accompanied by all supporting documentation, actually received by Barretts promptly upon discovery by buyer or any representative of buyer of any fact or circumstance indicating that the horse was not as warranted in this CONDITION, but in all events, such claim must be actually received by Barretts not later than FOURTEEN (14) days after the end of the session at which the horse was sold. In all events, the warranties under this CONDITION shall immediately terminate, and buyer shall have no right to make any claim under them, if the horse is used "under tack" after buyer or any representative of buyer knew, or should have known, any fact or circumstance indicating that the horse was not as warranted in this CONDITION, or if the horse starts in a race.

(E) Solely as an accommodation, Barretts may provide timing information and video relating to certain horses. Buyer, consignor and bidders each hereby release the Barretts Released from any liability or claims arising out of or relating to such information or video, including, but not limited to, the availability, accuracy or reliability thereof.

THIRTEENTH - EXOGENOUS ANABOLIC STERIODS: (A) Consignor warrants that any horse (broodmares and stallions excepted) entered in this sale by consignor has not been administered, or otherwise given, any exogenous anabolic steroids ("EAS") within 45 days of the date of sale of the horse. In order to be eligible for this limited warranty, buyer must complete Barretts' request form (available at the Barretts' sales office) and concurrently pay a non-refundable $250 fee, within 15 minutes of the fall of the hammer for the sale of the horse. Upon a valid and timely request, a blood sample from the horse will be taken, prior to the horse leaving the Barretts' sales grounds, by the official CHRB veterinarian assigned to the sale, which sample shall be sent to a laboratory selected by the official CHRB veterinarian for testing for EAS. Buyer and consignor consent to the taking of such blood sample and must make the horse available for that purpose. The limited warranty contained in this paragraph shall be effective notwithstanding any disclosure or announcement made by or on behalf of consignor.

(B) In the event that the test of the horse reveals the presence of EAS at such level as is deemed by the testing laboratory to show that EAS has/have entered the system of the horse within 45 days prior to the sale of the horse ("Positive Test"), buyer shall have the right to return the horse to consignor, which right must be exercised by buyer (i) giving written notice to Barretts within TWENTY FOUR (24) hours of buyer being informed of a Positive Test and (ii) expeditiously returning the horse to consignor. In the event of a Positive Test, and buyer's timely election to return the horse to consignor, consignor shall refund any sales proceeds paid to consignor by Barretts and pay buyer or Barretts all reasonable expenses and legal fees incurred by either of them in connection with, or related to or arising out of the horse or its return to consignor, including, but not limited to, the $250 testing fee, veterinarian charges, vanning or other transportation costs, insurance premiums, and board and care expenses. The foregoing remedies shall be buyer's sole and exclusive remedies and buyer shall not be entitled to any incidental, special or consequential damages, nor entitled to recover any lost profits or revenues whatsoever. In no event shall the Barretts Released have any liability to buyer for the purchase price, taxes, expenses or any other amount paid by buyer, any lost profits or revenues, or any other damages, including, but not limited to, any incidental, special or consequential damages for any horse offered or sold. In the event of a Positive Test, risk of loss shall remain with buyer from the fall of the hammer for the sale of the horse until the horse is returned by buyer to consignor, at which time the risk of loss shall pass to consignor. Buyer shall exercise due care with respect to the horse while buyer bears the risk of loss. The warranty under this paragraph shall immediately terminate, and buyer shall have no right to make any claim under such warranty, if there is any material change to the horse caused by buyer, including, without limitation, caused by buyer's failure to exercise due care or affirmative act (such as, for example, gelding of the horse). Neither Barretts nor anyone else, including the official CHRB veterinarian and the testing laboratory, shall have any obligation to maintain the sample drawn from the horse or to conduct testing of a split sample. Neither buyer, consignor nor any other interested party shall have the right to conduct testing of the sample drawn, including testing of a split sample. Barretts' decision concerning whether there is a Positive Test, as long as same is supported by the findings of the testing laboratory, and whether buyer is entitled to return the horse to consignor shall, absent fraud or bad faith, be fully binding upon consignor, buyer and all other interested parties. In the event that any party challenges, disputes or commences any arbitration regarding Barretts' decision, such party shall be liable for all of Barretts' reasonable expenses, including, without limitation, its attorneys' fees and costs, absent fraud or bad faith of Barretts.

(C) In the event that any blood or urine sample taken from a horse by Barretts or the CHRB, including, but not limited to, a sample taken on a random basis, results in a Positive Test for EAS, then (i) the horse shall be withdrawn from the sale without repayment of any entry fee, if the Positive Test becomes known prior to the sale of the horse; or (ii) the buyer shall have the right to return the horse to consignor in accordance with the terms of paragraph (B) of this CONDITION, if the Positive Test becomes known after the sale of the horse.

FOURTEENTH - REMEDIES FOR BREACH OF LIMITED WARRANTIES: Any horse sold in this sale which was not, at the time of sale, as warranted as provided for in CONDITIONS EIGHTH, NINTH, TENTH, ELEVENTH or TWELFTH shall be subject to return to consignor with refund of purchase price and any taxes paid, and reimbursement by consignor for the reasonable expenses of keep, maintenance, and transportation of the horse from the fall of the hammer. The foregoing remedies of buyer shall be buyer's sole and exclusive remedies and buyer shall not be entitled to any incidental, special or consequential damages, nor entitled to recover any lost profits or revenues whatsoever; provided, however, that the remedies of buyer shall not be limited as provided in the foregoing in connection with any horse sold which, at the time of sale, was not as warranted in (A)(1) or (A)(2) of CONDITION TWELFTH. In no event shall the Barretts Released have any liability to buyer for the purchase price, taxes, expenses or any other amount paid by buyer, any lost profits or revenues, or any other damages, including, but not limited to, any incidental, special or consequential damages for any horse offered or sold.

FIFTEENTH - ARBITRATION OF CLAIMS: (A) Veterinary Panel Arbitration of Certain Warranty Claims: Any dispute, claim or controversy relating to a two year old in training purchased at a sale session exclusively for two years old in training or a yearling purchased at a sale exclusively of yearlings, arising out of or under (A)(1) [sexual description], (A)(2) [impairment/injury to eye] or (A)(3)(i) or (ii) [bone and wind defect] of CONDITION EIGHTH, or arising out of or under CONDITION NINTH [bone defect for two years old in training-radiographs deposited] shall be determined by arbitration as follows: The arbitrator(s) shall be selected from the list of the Veterinary Arbitration Panel maintained by Barretts ("Panel"). Simultaneously with the delivery of buyer's claim to Barretts, buyer shall notify Barretts in writing of any member of the Panel who buyer contends has a direct financial interest in the purchase or sale of the subject horse, or who is otherwise biased in favor of or against any party to the arbitration. Consignor shall be entitled to challenge any member of the Panel on the same grounds, in writing forthwith sent to Barretts upon notification to consignor of buyer's claim. Any challenge by buyer or consignor shall fully describe and explain the challenge. If a buyer or consignor fails to timely or properly make a challenge, that party shall be deemed to have accepted all of the members of the Panel. Barretts shall make the determination on any challenges, taking into account the materiality of the facts and any prejudice to any of the parties and Barretts' determination shall be final and binding. Barretts shall, in its sole and absolute discretion, select from the Panel remaining after any challenges that are sustained by Barretts, the members, and the number thereof, to act as arbitrator(s); provided however, that Barretts shall appoint at least three (3) arbitrators if the sales price of the horse, exclusive of any tax, is more than $100,000. Barretts may in its sole and absolute discretion augment the Panel list and upon such augmentation, buyer and consignor shall forthwith notify Barretts in writing of any challenge to any augmented Panel member, in the manner set for above. The arbitrator(s) shall determine in a writing signed by the arbitrator(s) whether the horse was or was not as warranted at the time sold and the arbitrator(s) may engage such consultants, conduct such tests, investigations or examinations or engage in any other activity, as they deem appropriate in their sole and absolute discretion (and the parties shall allow the horse to be so examined and tested and the parties release, discharge, waive and relinquish the Barretts Released, the arbitrator(s) and their consultants from any and all claims, liabilities, damages or losses to the horse by reason of such examinations or tests.) The parties expressly waive any requirement that the arbitrator(s) conduct any hearing and any right to participate in the arbitration other than as provided herein, and the parties further agree that the arbitration may take place, even if they, or any of them, decline or refuse to participate in the arbitration. The determination by the arbitrator(s) shall be final and binding. If the determination is that the horse was not as warranted at the time of sale, then consignor shall immediately take possession of the horse, shall be liable to buyer for all amounts provided for in CONDITION FOURTEENTH (with payments administered by Barretts) and shall pay Barretts the sum of $750 toward reimbursement of the costs of arbitration, plus any additional costs incurred by the arbitrator(s) in determining the claim. If the determination is that the horse was as warranted at the time of sale, then buyer shall immediately take possession of the horse, pay for the horse in full and pay Barretts the sum of $750 toward reimbursement of the costs of arbitration, plus any additional costs incurred by the arbitrator(s) in determining the claim. Judgment relative to the arbitration may be entered in any court having jurisdiction and petitions to compel arbitration or to confirm, clarify or vacate any arbitration award may be served by certified mail.

(B) Veterinarian Arbitration of Certain Other Warranty Claims: Any dispute, claim or controversy arising out of or under (1) CONDITION EIGHTH (A)(1) [sexual description], (A)(2) [impairment/injury to eye] or (A)(3)(i) or (ii)[wind and bone defect] for horses other than a two year old in training sold at a sales session exclusively for two years old in training or a yearling sold at a sale exclusively of yearlings; (2) CONDITION TENTH [cribber, wobbler or nerved], for all horses; or (3) CONDITION ELEVENTH for broodmares, shall be determined by arbitration as follows: Upon receipt of buyer's claim, consignor shall forthwith have a licensed veterinarian specializing in equine medicine examine and/or test, as necessary, the horse where it is located and buyer shall allow the horse to be so examined and tested. If the buyer's and consignor's veterinarians agree as to whether the horse was or was not as warranted at the time of sale, then their decision shall be final and binding. However, if the two veterinarians fail to agree as to whether the horse was or was not as warranted at the time of sale, then the buyer and consignor shall forthwith agree upon a third licensed veterinarian specializing in equine medicine and if they are unable to forthwith agree upon the third veterinarian, the third veterinarian shall be selected by Barretts in its sole and absolute discretion. The third veterinarian may engage such consultants, conduct such tests, or examinations or engage in any other activity, as he or she deems appropriate in his or her sole and absolute discretion (and the buyer shall allow the horse to be so examined and tested and the parties release, discharge, waive and relinquish the Barretts Released, the third veterinarian and his or her consultants from any and all claims, liabilities, damages or losses to the horse by reason of such examinations or tests.) The parties waive any requirement that any hearing be conducted and waive any right to participate in the arbitration other than as provided herein and the parties further agree that the arbitration may take place, even if they, or any of them, decline or refuse to participate in the arbitration. The third veterinarian shall determine, in a writing signed by him or her, whether the subject horse was or was not as warranted at the time sold and such determination shall be final and binding. If the horse is determined (by the buyer's and consignor's veterinarian if they agree, or by the third veterinarian) not to have been as warranted at the time of sale, then consignor shall immediately take possession of the horse, shall be liable to buyer for all amounts provided for in CONDITION FOURTEENTH (with payment administered by Barretts) and shall pay the fees of, and costs incurred by, the third veterinarian (if any) in determining the claim. If the determination is that the horse was as warranted at the time of sale, then buyer shall immediately take possession of the horse, pay for the horse in full and pay any fees or costs incurred by the third veterinarian (if any) in determining the claim. Judgment relative to the arbitration may be entered in any court having jurisdiction thereof and petitions to compel arbitration or to confirm, clarify or vacate any arbitration award may be served by certified mail.

(C) ARBITRATION OF ALL OTHER CLAIMS: Any other dispute, claim or controversy between a consignor, buyer and/or Barretts arising out of or relating to any horse consigned to this sale, offered in this sale or sold in this sale, including, but not limited to, any claim under CONDITION TWELFTH or CONDITION THIRTEENTH, or any claim of misrepresentation, concealment, fraud or other tort, shall be determined by an arbitration by the American Arbitration Association ("AAA"), conducted by a single arbitrator, who shall be a retired judge, under the AAA's Commercial Arbitration Rules for non-consumer related disputes. The arbitration shall take place at an AAA office in Los Angeles, California. Any and all questions as to whether or not an issue constitutes a dispute or other matter arbitrable under this section shall themselves be settled by arbitration in accordance with this section. Barretts may, but shall not be obligated to, commence any such arbitration; however, should Barretts commence any such arbitration, and seek no monetary relief for itself therein, Barretts shall be entitled to recover all of its attorneys' fees and costs (including, but not limited to, administrative fees and the fees of the arbitrator) in all cases, from the party or parties who do not prevail in the arbitration; other than as provided in the foregoing, the arbitrator may, in the award, allocate all or part of the costs of the arbitration, including administrative fees, the fees of the arbitrator and the reasonable attorneys' fees of any prevailing party. Buyer, consignor or Barretts shall be entitled to petition to compel arbitration under this section. Judgment upon any award rendered by the arbitrator may be entered in any court having jurisdiction thereof, and petitions to compel arbitration or to confirm, clarify or vacate any such award may be served by certified mail.

SIXTEENTH - SALES TAX: If buyer intends to ship any purchased horse out of state, buyer shall sign and deliver to Barretts prior to purchase a Pre-Sale Interstate Delivery Agreement directing such shipment, at buyer's sole risk and expense, via a licensed carrier. Provided that buyer has fully complied with these CONDITIONS, Barretts shall deliver, without incurring any liability, such horse in accordance with instructions and arrangements that buyer shall provide for shipment. Buyer acknowledges that to qualify for a sales tax exemption, such horse MAY NOT BE TRAINED OR OTHERWISE USED IN CALIFORNIA while awaiting shipment. Notwithstanding anything to the contrary, should any sales or use tax, penalty or interest (collectively the "Tax") be imposed on any purchase for any reason, buyer will be solely responsible for and shall promptly pay the Tax and defend, indemnify and hold the Barretts Released harmless (including, but not limited to, all reasonable attorneys' fees and costs) from or in connection with the Tax.

SEVENTEENTH - ENTIRE AGREEMENT: These CONDITIONS, the Glossary of Definitions, Breeding Definitions and all Notices (including but not limited to "Registration and Payment Procedures" or "Change of Ownership") contained in this Catalog, Acknowledgments of Purchase, any announcement from the auction stand authorized by these CONDITIONS, and any official Barretts publication shall constitute the entire agreement of consignor, buyer, and Barretts, bidders/buyers, and all other interested parties with respect to the subject matter hereof and shall supersede all prior or concurrent agreements, understandings, warranties, representations and negotiations concerning the subject matter hereof. None of the terms and conditions set forth herein shall be modified or waived except in writing signed by Barretts' General Manager and the party affected thereby. Barretts shall not be bound by any oral or written agreement between the buyer, consignor or anyone else purporting to modify or change these CONDITIONS, unless Barretts' General Manager so agrees in a writing expressly stating that the writing is a modification or change of these CONDITIONS. These CONDITIONS, including headings of the paragraphs hereof, shall not be interpreted against Barretts. If any provision or portion of these CONDITIONS is held to be illegal or invalid, such illegality or invalidity shall not affect the remaining provisions or portions of these CONDITIONS, and they shall be continued and enforced as if such illegal or invalid provision or portion had never been inserted herein.

EIGHTEENTH - LIMITATIONS OF ACTION: Any action or proceeding arising out of or related to these CONDITIONS, or the purchase of a horse in this sale, whether it is based in contract, tort or equity must be commenced no later than ONE (1) YEAR after the date of the sale, regardless of when the facts giving rise to the claim are discovered, or shall be forever barred; provided, however, that such limitation shall not apply to any claim made by buyer under (A)(1) of CONDITION TWELFTH or any action by Barretts to collect or recover any payment, commission, cost or expense under these CONDITIONS or under any Consignor's Contract, or to foreclose on any lien granted in favor of Barretts.