Using barbed wire with horses?

My neighbor to the North came to me this weekend and discussed rebuilding the shared fence between us in our pastures. It is quite dilapidated in spots and the whole quarter mile needs to be replaced. He has offered to pay the entire cost and do the labor himself if I let him build it his way. He has goats and... show more My neighbor to the North came to me this weekend and discussed rebuilding the shared fence between us in our pastures. It is quite dilapidated in spots and the whole quarter mile needs to be replaced. He has offered to pay the entire cost and do the labor himself if I let him build it his way. He has goats and wishes to build a fence similar to this...

http://www.lovedayfence.net/goat_fence_o...

with a strand of barbed wire at the top. He guarantees it will be five foot high. I told him I'd think about it. My horses have been around similar fences before with no problem but I don't like the barbed wire. Smooth wire won't keep his goats in so it would mean I'd have to install a secondary fence or come up with another solution which may cost me several thousand dollars. Suggestions? Solutions? Thanks.
Update: He doesn't want electric as it would be difficult for him to maintain... I'm thinking of something like this... http://www.fencingsolutions.com/ And he can use this... http://www.hearnesteel.com/ProductsCatalog/ProductInformation/ProductID/374 on his side of the fence with the barbed wire. I'm thinking if he... show more He doesn't want electric as it would be difficult for him to maintain...

I'm thinking of something like this...
http://www.fencingsolutions.com/

And he can use this...
http://www.hearnesteel.com/ProductsCatal...
on his side of the fence with the barbed wire. I'm thinking if he inverts it he can add the barbed wire on his side without it coming into contact with my animals.
Update 2: Fennec, smooth wire won't keep goats in and he doesn't want to run hot wire. The barbed wire is for the goats, not my horses, which is why he'd hang the barb arm on his side.
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