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1. Expressions in Application Form

Expressions, words or definitions used in the above Application shall bear the same meanings when used herein.

2. Fees

2.1 The Client shall on delivery of the Mare to the Farm, pay a non-refundable booking fee to NSF in the sum of RM1,500.00 or any such other sum as may be determined by NSF at its absolute discretion from time to time to secure the due performance of the client's obligations herein. The booking fee shall be utilised against the amount constituting the service fee upon the same being due in accordance with Clause 2.2 below.

2.2 The service fee as contained in the Schedule of Charges annexed hereto shall be paid to NSF upon the Mare being tested in-foal on a 45-day positive pregnancy test carried out by NSF's veterinarian.

If the Mare leaves the Farm before the expiry of the 45 period, the 45-day certificate verified by a qualified veterinarian shall be submitted to NSF within 7 days after the 45-day period, certifying that the Mare is not in-foal. If no such certificate is submitted to NSF within the said 7 days, the service fee shall be paid to NSF upon receipt of NSF's invoice.

2.3 The foaling, veterinary, breeding and agistment fees in respect of the corresponding services shall be paid by the Client upon receipt of NSF's invoice.

2.4 Transportation costs of the Mare and her foal shall be borne and paid by the Client.

3. Variation of Fees

NSF may at any time vary the amount of fees and charges by the Client or vary the terms of payment thereof by a notice in writing to the Client and any such variation shall take effect from the date stated in the notice.

4. Interest on Late Payment

The Client shall pay NSF interest at one point five percent (1.5%) per month on all late payments, such interest to be calculated on a daily basis from the date when the payment is due to the date of full payment thereof, irrespective of whether a Court Judgement has been obtained by NSF in respect of such payments.

5. Lien

5.1 PMP shall have a lien on the Mare and its foal (if any) until payment of all monies due and owing by the Client and all interest accrued thereon in respect of the Mare and/or foal ("the Debt").

5.2 Subject to Clause 5.3 below, NSF may, in the event of non-payment of the Debt or any part thereof, at its absolute discretion, sell the Mare and/or its foal by way of private arrangement or deal with the Mare and/or its foal by auction or in any manner as may be determined by NSF, including the disposal of the Mare and/or its foal in any manner whatsoever deemed fit by NSF.

5.3 In respect of the disposal of the Mare and/or its foal referred to in Clause 5.2 above, such disposal may be affected by NSF in the event that the Debt or part of the Debt is due and owing by the Client for a duration of any four (4) months whatsoever. For the avoidance of doubt, such duration shall not be limited to a period of four (4) consecutive months.

5.4 The Client hereby consents to the sale and/or disposal of the Mare and/or its foal as provided in Clauses 5.2 and 5.3 above and agrees that he shall have no claims whatsoever against NSF for any cost expense, damage or loss sustained or suffered as a result of, arising from or in connection with the sale and/or disposal of the Mare and/or its foal pursuant to the provisions herein.

5.5 If upon the sale or disposal of the Mare and/or its foal as aforesaid, the proceeds amount to less that the monies due and owing to NSF, the Client shall pay NSF the difference thereof and shall, until full payment, pay interest on the sum representing the difference between the principal sum outstanding in respect of the Debt and the proceeds thereof at the rate prescribed in Clause 4 above.

6. Live Foal Guarantee

6.1 Where the Client has paid the stallion service fee but the Mare does not produce a live foal, NSF will, on production of a veterinary certificate to the effect, provide the Mare with a fee return service to the Stallion in the following season. The live foal guarantee is not applicable if :-

(a) the Mare is transported overseas during the term of her pregnancy;

(b) full payment of the stallion service fee is not made within the period stipulated NSF's invoice;

(c) the Client is negligent in the management or provision of such management of the Mare during pregnancy or at foaling;

(d) the owner sells the Mare;

(e) during the term of her pregnancy the Mare is not suitably vaccinated against Equine Herpes Virus Abortion; or

(f) the Mare dies during the term of her pregnancy.

6.2 If the Mare uses a free return and still does not produce a live foal, the Mare shall not be entitled to a further free return.

6.3 The free return is subject to the Stallion standing at the Farm in the following season and if not, the Mare shall be entitled to a free return to another stallion chosen at NSF's absolute discretion.

7. Refusal of Service

7.1 NSF reserves the sole and absolute discretion to refuse to have the Mare covered or the Services provided, for any reason whatsoever including but not limited to where it considers that the Mare may injure the Stallion or if the Mare is fractious or is suffering from any contagious disease. NFS also reserves the right to determine the times when the Mare shall be covered.

7.2 In the event NSF refuses to have the Mare covered or the services provided in accordance with Clause 7.1 above, the Mare shall be collected from the Farm within fourteen (14) days of notification to the Client by NSF, failing which, the Horse may be disposed off in any manner whatsoever deemed fit by NSF, including but not limited to euthanasia.

7.3 Any and all fees and charges incurred in respect of the Mare during such time that it remains at the Farm shall be part of the Debt owing by the client to NSF. In the event of late payment thereof, NSF shall be entitled to impose interest in the manner and at the rate provided in Clause 4 above.

8. Identification

It is the Client's sole responsibility to correctly identify the Mare and/or its foal (if any) on delivery to or collection from the Farm and the Client shall indemnify NSF against any cost, expense, loss, damage or claim whatsoever arising out of, in connection with or resulting from such delivery to or collection from the Farm.

9. Risk

The Client agrees and confirms that :-

9.1 The Mare and its foal (if any) shall for so long as they are kept with NSF continue to be at the sole risk of the Client in respect of any loss, injury or death resulting from any accident, illness, disease, theft, robbery, acts of God, riot, civil commotion or misadventure of any description whatsoever; and

9.2 NSF shall not be liable or responsible in any manner whatsoever for any injury, illness or disease howsoever and whatsoever sustained or suffered by the Mare and/or its foal (whether or not resulting in death) even if such injury, illness, disease or death was caused directly or indirectly by NSF's or its employees' or its agents' negligence or willful default.

10. Insurance

The Client shall at all times be solely responsible for insuring the Mare and its foal.

11. Veterinary Services

11.1 The Mare and its foal shall at all times be subject to the care of the veterinary surgeons appointed by NSF who are empowered to treat the Mare and its foal in such manner and at such times as the NSF and/or the veterinary surgeons in their absolute discretion deem necessary and proper for the welfare of the Mare and its foal including but not limited to the immediate disposal of the Horse by way of euthanasia. Such care and treatment shall be at the Client's cost and expense.

11.2 If the Mare and/or its foal is/are ill, diseased and is/are injured from any accident or misadventure, NSF may, at its absolute discretion arrange for a second veterinary opinion at the cost and expense of the Client.

11.3 NSF shall not be liable for any disease, illness, injury or death caused to the Mare and/or its foal as a result of the said veterinary surgeons' negligence or willful default in treating the Mare and/or its foal.

12. Visit

The Client may only visit and/or inspect the Mare and its foal after a prior appointment has been made with NSF and only during reasonable hours of the day.

13. Costs

If any fees, charges or any other monies shall be required to be recovered through any process of law, the Client shall pay (in a addition to the fee, charges or monies then due and payable) NSF's solicitor's fees (on a solicitor basis) and any other fees and expenses incurred in respect of such recovery.

14. Notices

Any notice in writing required to be issued hereunder may be left at the unusual or last known place of residence or business of the Client or at the address stated in the Application above or sent by registered mail or facsimile transmission to any of such addresses and shall be deemed to be served and received :-

14.1 if left at any of the above addresses, at the time when it is so left

14.2 if sent by registered mail, three (3) days from the date the registered letter is posted or

14.3 if sent by facsimile transmission, duly confirmed by the transmission report.

15. Successors Bound

The above terms and conditions shall be binding upon the heirs, personal representatives and successors-in-title of the Client and the successors-in-title and assigns of NSF.