This is a translation. Valid is always the text in German

REGULATION 4. SWISS INTERNATIONAL SALE
Saturday Septembre 5, 2009, time 13.00, Ice arena Chur (Switzerland)

1. Object
Züchter-Service ZS AG, Chur (ZS-AG) will organize an international sale with high quality breeding animals from the breeds Holstein, Red Holstein, Jersey and Brown Swiss. The animals are originated from different countries. This sale event should be organized as well in a special atmosphere.

2. Goals
This auction should be a good sale platform with an international character. We will build up a very high image for the transfer of high genetic animals. This event should be as well an information source for the modern dairy farmer und dairy breeder.

3. Responsibilities
ZS-AG is responsible fort he whole coordination and organization from the sale event.
The selection from the animals can be delegate to different partners.

4. Place, date and program
This event (Swiss international sale) will be on Saturday, September 5, 2009 at 1:00 pm in the ice arena Obere Au in Chur (Switzerland). It is a part from the exhibition GEHLA.
The sale animals can be inspect on Saturday 05.09.2009 after 11:00 am. The exhibition GEHLA is open until 10:00 pm and the restaurant and the breeder bar are open until 1:00 am.

5. Selection and preparation from the animals. What goes to the auction.
Only genetic- and typwise high quality young animals are to select. Responsible for the selection is ZS-AG. She can delegate the selection to partners.
With the written declaration confirmed the seller, knowledge of these regulations and that he accept these regulations.
The import from the animals will be done in coordination with the ZS-AG. All costs from this import till to the quarantine barn Switzerland (transport, customs, etc) has to be paid by the supplier.
The animals has to be announce by the ZS-AG until Juin 30, 2009. The suppliers get free a place for a booth from 4 x 3 meters during the sale event and 1 page advertisement with a 50 % discount in the auction catalogue.

6. Veterinarien regulations and conditions
The regulation from the official veterinary (veterinary of canton Graubünden) are strictly to follow. The sale will be under control from the official veterinary. All animals must come from herds’ official free from Tuberculosis, Brucellosis, IBR-IPV and
Leucosis.
All animals must have a negative blood test result for IBR-IPV, BVD-Antigen and Bluetongue Virus (PCR). The blood test must be done during 30 days before the auction will be. In behave of Bluetongue, all animals must be vaccinated (Basic immunisation)
The imported animals must fulfil the Swiss import conditions (Traces certificate, blood test for IBP-IPV, BVD-Antigen and BT-Virus etc). Our schedule is, that the foreign animals get imported to Switzerland on July 31, 2009 (look to the attached time schedule)
The imported animals goes in Switzerland to a quarantine from least 3 weeks and after this, the imported animals get treated the same way like the animals from Switzerland. The buyer pays the costs from the Swiss quarantine and ZS-AG will coordinate this imports.

7) Performance (Bringing) / Feeding / Care / Styling / pictures from the sale animal
All animals, originated in Switzerland, goes on Wednesday September 2, 2209 to the barn Gmür/Horni, 7310 Bad Ragaz and get there prepared for the auction. The final bringing schedule will be planed in collaboration with the supplier. After the auction, 5-8 animals must stay until Sunday, September 13, 2009 by the exhibition GEHLA. Witch animals will be stay during the exhibition will be decided
after the auction is finish. The decision will be done in collaboration with the buyers. The foreigner animals go on July 31, 2009 to the special import barn in Bad Ragaz.
The transport after the auction will be done as agreed with ZS-AG Feeding and animal care get organized through ZS-AG. ZS-AG is as well responsible for the styling of the animals and the presentation (lead) of the animals during the
auction.
If ZS-AG get from the sale animal a picture in good quality (resolution, animal presentation etc) and this pictures is for promotional purposes available, the advertising contribution will be reduced by CHF 100 - . The corresponding picture material is to delivery up on 4 May 2009 to ZS-AG.

8) Transport - shipment
The shipment is in charge of the seller / selection partner and the buyer from the animals.

9) Insurance
The animals for the auction are insured through ZS-AG from the arrive time until the depart time on the sale ground (GEHLA).

10) Advertising / Order of the auction/sale
- ZS-AG will make an auction catalogue. Each animal gets presented in the Catalog with the pedigree and an advertising part (text and pictures). The suppliers / selection partners are responsible, that all documents (text, pedigree) and pictures for the sale catalog are given to ZS-AG until Juin 30, 2009 (sending electronically jpg, eps, pdf file). It is obvious that by the promation for the sale (example holstein International) those sales offers to be preferred by those early good information and picture material is available
- If a supplier like to make on his own cost an advertisement in the Swiss farmer journal Schweizer Bauer from August 15, 2009 (big edition) and/or August 29, 2009 get him the magazine Schweizer Bauer a discount from 20 percent. Contact person Schweizer Bauer: Irene Heynen, phone 0041 31 330 30 16, e-mail: inserate@schweizerbauer.ch
- ZS-AG make a clear presentation from each animals in the barn
- The auction will be on a big stage in the ice arena Chur. As well we make a nice VIP-Lounge for the selection partners and selected buyers. For the entry to this VIP-Lounge is a ticket necessary. All sellers and selection partners get 3 tickets. The distribution form the other VIP-tickets make ZS-AG (total around 200 tickets)
- Went the auctioneer the object to somebody is the object (animal) sold and use and danger goes to the buyer. The buyer is obligate to take the bayed animal over. ZS-AG take the animal not back and make no discounts on the price
- Minimum prices get not fixed.
- By the imported animals will be done a clear declaration in the sale catalogue, that the buyer has to pay additionally the cost from the import from the animal (fodder cost Swiss quarantine, veterinarian, registration by the Swiss breeding federation, transport etc). The ZS-AG reserves the right to a fair value corresponding to the deposit for the import cost in addition to the sale price to rise.
- The buyers from Switzerland get an invoice for the animals and have to pay this invoice within 10 days. The foreign buyer has to pay the animals before we export them. All buyers have to pay a handling fee from 4 percent from the price.
- The animals get paid to the selection partners when the guarantee time is run off (normal 9 working days) or if any guarantee cases are finished.

11. Guarantees
The seller give to the buyer the guarantee for healthy and goodness of the animals (Swiss expression) for the time from 9 days (Swiss law). The declaration in the auction catalogue is as well guaranteed. If something changed, by the presentation from the animals by the auction, the person witch present the animals, will announce the changes and this announcements are as a well a change of the guarantee
The guarantee time start on the selling days. The seller give no guarantee for mangles witch are coming from after the auction is over.
The ZS-AG takes no risk and gives no guarantees for animals witch goes to the auction.

12. Imported animals, sales to foreign countries
The imported animals get imported to Switzerland with the carneate and have at the moment from the auction a duty-free status. Stays an animal in Switzerland, ZS-AG will make the necessary customs work. The buyer has to pay as well the costs for the Swiss import quota, the veterinary, the customs and the administration to pay (with deposit)
For the animals witch get sold in foreign countries the animal get exported on Thursday September 10, 2009 (or in agreement with the buyer) and the buyer has to pay all the export costs (with deposit)

13. Costs
For the seller
- Advertising fee from sFr. 150.- (sFr. 100.- less when we get a picture follow to point 7)
- Commission from 8 % from the selling price
- Selection and shipment costs follow to the rules from the selection partners
- By foreign animals all cost till the Swiss quarantine barn (Transport, Carnet ata, etc)

For the buyer
- Price on the auction
- Commission from 4 % from the selling price
- Deposit import – export costs follow to the description under point 12 (fodder Swiss quarantine, Import quota, Import – Export custom fees, blood tests, veterinarian, registration fees breeding federation, federation fees, transport). The amount of bail is in a sales catalogue declares

14. Booths, advertising and sponsoring
A special regulation describe this points detailed and the regulation can be downloaded under http://www.zs-ag.ch The seller from animals can make advertising with a discount from 50 % to the normal price in the sale catalogue 16. Lawsuit For the settlement from the difference of opinion, a court of arbitration will be insert.
A representative from the buyer and seller and a representative from the court of canton Graubünden as chief will be member from this court of arbitration. The decisions from the court of arbitration will be definite.

Chur, February 16, 2009

For the ZS AG
sig. Peter Bosshard sig. Reto Rauch

Attached to this regulation is the time table for the animal movement. The time table
are an integral part of these rules. PDF download