S.K. Johnston, III and Julie N. Boyle f.k.a. Julie N. Johnston, et al. - Page 28

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                  Polo ponies are generally sold in private transactions where                        
            the prospective purchaser tries out the pony by riding it and                             
            playing it in a polo game.  It typically takes 2 years of                                 
            training before a pony is ready for sale.  Petitioner and                                 
            Atkinson believed that the best strategy for selling a polo pony                          
            is to show a horse's abilities either by allowing a prospective                           
            purchaser to ride the horse during a polo game, or by playing a                           
            horse in a highly visible tournament where purchasers pay high                            
            stakes for horses that play well.  Atkinson encouraged S.K.                               
            Johnston to play BPS' horses in matches to show potential                                 
            purchasers that the horses were not only good for professional                            
            players, but for amateurs as well.  With respect to advertising,                          
            the plan was to play the higher level tournaments to make a name                          
            for the company and establish its credibility; the idea was that                          
            the exposure in the higher level tournaments would eventually pay                         
            off.  During the years in issue, a top quality polo pony would                            
            sell for $30,000 or $40,000, and an average polo pony would sell                          
            for around $10,000.  The higher the tournament played, however,                           
            the higher the costs.                                                                     
                  To get ready for the winter selling season in December, BPS'                        
            schedule began in October.  Atkinson, along with the required                             
            number of grooms, traveled with the horses to Florida where most                          
            of the elite polo clubs are located.  The sale season lasted from                         
            the end of December until the beginning of April.  In April, they                         
            would return to Bendabout or Flying H, to allow the horses that                           



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