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A. In General

This auction is a public auction within the definition of § 474, section 1S.2 BGB (German Civil Code) in which horses are sold

as used goods in a legal sense. Therefore, the rules for the purchase of consumer goods (§§ 474 ff BGB) are not applicable.

The ESI Trading GmbH, Rossegarden 5 in 49688 Lastrup, is the organizer of the auction. The company sells the horses

listed in the catalogue in the exhibitor‘s name and for the exhibitor‘s account (commission business).

B. Nature of Goods Agreement

The horses for sale, which are not for the purpose of producing food, are sold as seen. At the time of hand-over, they shall

have the following quality characteristics which, at the same time, are subject matter of the sales contract:

I. Exterior Characteristics

1. Pedigree as specified in the catalogue. The pedigrees given in the catalogue have been verified by breeding certificates

that will be given to the buyer after purchase of the horse.

2. Sex, color and year of birth as specified in the catalogue.

The photographs of the horse printed in the catalogue as well as any brief comments made, including the assignment

of traits of the horse regarding predestination for dressage, jumping or eventing, are not quality characteristics and are

based on statements made by the exhibitor and subjective observations made at the time the catalogue was printed. An

assurance regarding the ability of the concerned horse is not given.

II. State of Health

The horses for sale have been clinically examined and x-rayed before they were delivered to be prepared for the auction.

X-rays were taken in the following standard projections:

Foot from the front (90°) and oxspring

Foot from behind (90°)

Hockjoint from both sides (45° - 70°, 90° - 115°)

Stifle from both sides (90° - 110°)

The clinical examination carried out has been recorded in a veterinary examination report. Interested buyers may view

this report in the auction office. X-rays have not been assessed. They are available to interested buyers and can be viewed

in the auction office during the ntire preparation time for the auction along with the written clinical examination report.

Interested buyers may have a veterinarian of their choice or the auction veterinarian interpret the x-rays. The organizer

will not be liable for any interpretations. The written results in the clinical examination report as well as the x-rays

taken are subject matter of the sales contract. Further quality characteristics in regard to performance, health or other

properties of the horse were not determined by the organizer. Thus, such characteristics are not subject matter of the

sales contract.

C. Scope of Liability

I. Liability of the organizer is limited to the Nature of Goods Agreement found in section B with the restriction that

contractual claims for subsequent fulfillment or reduction of the purchase price are excluded.

II. Claims for damages are limited to reimbursement of transport costs from the auction stables to the buyer‘s stables in

Germany as well as boarding costs and costs for the first veterinary examination as well as blacksmith costs. The organi-

zer will not be liable for further costs, particularly for training, replacement or any damage to property.

D. Taking Delivery and Passing of Risks

I. The buyer or his agents are obligated to take over the horse immediately after signing the purchase note. At knock-

down, which represents the point of change in ownership, the risk involved with owning the horse passes to the buyer.

The right of ownership of the purchased horse passes to the buyer after the purchase price has been paid in full, even if

the horse is still in the custody of the organizer. Liability of the organizer for any type of damage to a sold horse is limited

to willfulness and gross negligence. The horses are delivered to the buyer with a halter and lead.

E. Guarantee

Apart from the Nature of Goods Agreement listed in sectionB, the horses are sold as seen without any guarantee.

F. Limitation

Warranty claims by the buyer are limited to a period of 12 months after ownership of the horse has passed to the buyer.

G. Offers for Horses Made in Euro

Only minimum increments of 250,- EUR will be accepted. In case of more than one bid, the auction management shall

decide knock-down which may be determined by lot or assignment. A commission of 6 % of the knock-down price plus

the valid value added tax are due from the buyer for each horse. The buyer also bears the cost of an insurance policy for

the horse. The insurance premium is 2 % of the knock-down price plus commission and value added tax. By signing the

purchase note, the buyer authorizes the organizer to take out the insurance described above in the name of the buyer

and for the buyer‘s account.

The invoice is made up of the following items:

Knock-down price

+ 6 % commission

-----------------------------------------

= net amount

+ 19 % value added tax

-----------------------------------------

= gross amount

+ 2 % insurance premium

-----------------------------------------

= invoice amount

The organizer is authorized to receive payment. Buyers with place of residence or are based in other EU countries do

not need to pay value added tax if the horse is taken abroad immediately after it has been purchased. Buyers with place

of residence or are based in Germany must pay the valid German value added tax. You do not have to pay value added

tax if you present the organizer your VAT registration number to prove that you are buying the horse for your company.

H. If a dispute arises concerning

knock-down which must be communicated immediately, bidding may be resumed

again, pending the decision of the auction management‘s representative. This is also permitted, even if the purchase

note has already been signed.

I. The purchase price is due immediately after knock-down.

The invoice amount must always be paid in cash or by check at the cashier‘s desk in the auction office. Ownership is only

transferred to the buyer after payment has been made in full; in case of a check after it has been credited to account. A

stop payment order is not permitted, even if the buyer has made a complaint about the horse. The assertion of a claim to

the right to withhold/defense of set-off is only possible on the basis of an enforceable legal document/decision.

J.

Horses must be picked up on the day of the auction by 8:00 p.m., otherwise the buyer will be charged for boarding.

K.

No horse may be removed from the auction premises before payment has been made. Horses may only leave the

premises upon presentation of a passing certificate issued by the auction office.

L.

In case of complaints, the buyer must inform the organizer in writing, who will then get in touch with the exhibitor

and insurance company.

M.

The Terms & Conditions of the Auction will be posted in the auction office on the day of the auction.

N.

Should one or more of the provisions above be or become without effect, the remaining provisions are not affected.

Ineffective provisions are to be replaced by rules that allow the parties to achieve the desired economic goals in a manner

that is legal and feasible.

O.

Venue in case of disputes involving the organizer is Cloppenburg.

terms & conditions

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ESI Trading GmbH