BIDDING: Each animal will be sold to the highest bidder without reserve.

BIDDING DISPUTE: The Auctioneer in charge will settle any dispute as to bids, and his
decision on such matters shall be final.

CASH SALE: All sales are for cash unless satisfactory credit arrangements, including
any possible reservation of security interest by the seller, have been made with the
seller prior to sale.
BUYER’S RISK AT THE TIME OF SALE: The risk of loss and injury of each animal passes to
the buyer as soon as it is sold; however, it is the obligation of the seller to ensure that
sold animals are fed and cared for free of charge to the buyer until loaded for shipment
or until the expiration of 24 hours after the sale, whichever occurs sooner.

CERTIFICATES OF REGISTRATION: A transferred certificate of registration must be furnished
by the seller free of charge to the buyer for each animal within 65 days following
the later of either the date of sale or upon the receipt of full payment.

HEALTH: Health papers suitable for interstate shipment will be furnished on all
animals.

ANNOUNCEMENTS: If there is any inconsistency in information in terms of the sales
materials (e.g. sale catalog, supplemental sheets, sale day announcements) 1) sale day
announcements will control over both the supplement sheet and the sale catalog, and
2) the supplement sheet will control over the sale catalog.

IDENTIFICATION RESPONSIBILITIES: 1) Prior to the sale, the seller must ensure that
each animal has a readable permanent identification mark (tattoo, hot-iron brand or
freeze brand) corresponding to its registration identification and 2) The buyer must
check all permanent identification marks for accuracy upon possession and report any
discrepancies to the seller immediately.

OFFICIAL BBU INFORMATION: All existing available official BBU information, including
calf source, service sire and/or potential service sires (registration numbers) and
performance data may be included in the final sales catalog.

PEDIGREE, PERFORMANCE AND GENETIC INFORMATION GUARANTEES: The seller guarantees
to the buyer that: 1) the pedigree, performance data and genetic information, as
represented in any sales materials (including sale catalog, supplemental sheet or sale
day announcement), are accurate; and, 2) all information from the BBU database is
accompanied by an accurately stated “as of” date. The absence in any sales materials of
a specific designation on the pedigree of an animal does not establish that the animal
in question is not a carrier of such genetic defect.

BREEDING GUARANTEES:
1) The seller guarantees that all animals are breeders, with the exception of : (a) calves
under 12 months of age at the time of the sale; (b) animals shown after the sale has
occurred (in such cases, the breeding guarantees, if any , will be those guarantees as are
agreed upon between the seller and the buyer); (c) animals who suffer injury or disease
following the sale; (d) animals administered any super ovulation drug or growth
hormone after purchase; and, (e) animals subjected to gross negligence by or willful
misconduct on the part of the buyer.

2) Bulls eighteen (18) months or older are guaranteed by the seller to have passed
a Bull Breeding Soundness Evaluation (BSE) and to have been certified a satisfactory
potential breeder by a licensed veterinarian with sixty (60) days prior to sale date.
Results of the BSE must be reported on a fully completed official form and attached to
the health papers required for the sale.

3) If within one-hundred twenty (120) days from the date of sale, the bull has failed
to pass a BSE certified by a licensed veterinarian, buyer must send seller written notification
of the failure of the test within one-hundred twenty (120) days from the date of
sale and include the BSE test results. Within sixty (60) days after sellers notification of
the failed BSE test, buyer and seller shall identify a mutually agreeable licensed veterinarian
or technician certified by a licensed veterinarian to perform another BSE on the
bull at the buyer’s expense. The results of the test shall be deemed final and conclusive
of this matter and binding on buyer and seller. If, in the opinion of said veterinarian or
technician, the bull is unable to pass a BSE and be confirmed a satisfactory potential
breeder, he shall so certify in writing to the seller and the buyer which shall include
the official from used by the Society of Theriogenology or the official BBU BSE form. In
such event the buyer may return the bull to the farm of seller, provided the bull is in
good condition and in compliance with the health requirements of the seller’s state, for
a refund of the full purchase price. The acceptance of the refund of the full purchase
price shall in any case be deemed full satisfaction and settlement of the matter. The
seller and buyer shall bear equally all reasonable and necessary transportation expenses
that are incurred in returning the animal to seller. Unless otherwise agreed by
the buyer and the seller, the seller makes no guarantees with respect to the
ability to freeze semen.

PRIVILEGES OF RETURN OR ADJUSTMENT OPTIONS:

1) With the exception of any applicable transportation expenses described herein, a
seller shall never be liable to a buyer for an amount greater than the original selling
price of any animal sold under these Sales Terms and Conditions.

2) Unless otherwise stated, all claims for adjustment or refund must be made in
writing to the seller within 180 days following the sale of the animal in question.

3) If an animal is claimed to be a non-breeder, the animal may be returned to the seller
if it is in a good condition and complies with the health requirements of the seller’s
state. At the option of the buyer, the seller may issue a credit to the buyer for use in a
future purchase or provide an animal of equal value subject to the approval of buyer. If
the buyer exercises either such option, the claim shall be deemed fully and satisfactorily
resolved. However, in the event that the buyer requests a refund of the purchase price,
the seller may, at its option, either issue a refund of the full purchase price or, shall have
180 days from the date the animal is returned to the seller’s farm to conduct a trial
to demonstrate the returned animal is a breeder. Refund of the full purchase price or
demonstrated proof that the animal is a breeder during the test trial shall be deemed
full satisfaction and settlement of the claim. Any expense incurred for transporting an
animal claimed to be a non-breeder will be the responsibility of the buyer, except that
the seller will be responsible for transportation costs in excess of the distance between
the buyer’s farm and the location where the sale took place. If the seller proves the
animal to be a breeder, it will be the obligation of the buyer to take delivery of the
animal and pay all transportation expenses.

4) If an animal is sold and subsequently becomes ineligible for registration under the
rules of BBU for reasons other than incorrect parentage, the seller must make a satisfactory
adjustment on the purchase price to the buyer, or at the option of the buyer, refund
the purchase price upon the return of the animal to the farm of the seller.

5) If an animal (including the offspring of a pregnant recipient) is sold and through
parentage verification is proven to have incorrect parentage, as represented by the
animal’s certificate of registration, and for which correct parentage can be determined,
the seller is obligated to make a satisfactory adjustment on the purchase price to the
buyer or, at the buyer’s option, refund the purchase price upon the return of the animal
to the farm of the seller. Any claim for adjustment or refund under this paragraph must
be made in writing to the seller on or before the first anniversary of the date of the sale.

6) Unless stated otherwise, all transportation expenses incurred will be the
responsibility of the buyer, except that the seller will be responsible for transportation
costs in excess of the distance between the buyer’s farm and the location where the
sale took place.

GENETIC DEFECTS AND FACTORS: REQUIRED DISCLOSURES RELATING TO CERTAIN TEST
RESULTS OR POTENTIAL CARRIER STATUS OF AN ANIMAL:

1) In advance of any sales of an animal, the seller shall have the affirmative duty to
notify any potential buyer of any test results in which an animal for sale has tested
positive (under a test and at a laboratory approved by BBU) as a carrier of any genetic
defect or genetic factor recognized by BBU.

MISCELLANEOUS:

1) The above terms and conditions of sale constitute a contract between the buyer and
the seller and are equally binding upon both parties. Each sale or resale of an animal
constitutes a separate transaction.

2) Neither BBU nor any director, officer, employee or representative of BBU or any of
its related entities shall be liable in any way with respect to a transaction conducted
under these Sales Terms and Conditions; nor shall BBU, its directors, officers, employees
or representatives be responsible in any way for enforcing the terms and conditions of
any agreement between a buyer and a seller. Each buyer and seller agree to hold BBU,
its directors, officers, employees, representatives and related intities harmless from all
damages, expenses, claims, losses and other liabilities associated with a transaction
conducted under these Suggested Sales Terms and Conditions.

3) No sponsor, sale manager, or other person connected with the management of a
sale shall be liable in any way with respect to transactions conducted under these Sales
Terms and Conditions.

4) These sale terms and conditions and all rights, obligations and duties arising
hereunder and all disputes arising hereunder will be construed in accordance with, and
governed by, the laws of the state in which the sale occurs, without giving effect to
such state’s choice of law rules.

5) UNLESS OTHERWISE EXPRESSLY STATED IN THESE SALE TERMS AND CONDITIONS
OR ANY OTHER WRITTEN AGREEMENT BETWEEN THE PARTIES RELATING TO THE SALE
OR BEEFMASTER, BEEFMASTER ADVANCER, E6 OR UPGRADING CATTLE UNDER THESE
SALE TERMS AND CONDITIONS, SELLER MAKES NO OTHER WARRANTIES, EXPRESS OR
IMPLIED, INCLUDING ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR
A PARTICULAR PURPOSE, EVEN IF SUCH PURPOSE IS KNOWN TO THE PARTIES. THE
REMEDIES PROVIDED IN THESE SALE TERMS AND CONDITIONS ARE THE EXCLUSIVE
REMEDIES OF THE BUYER, OR ANY PARTY CLAIMING THROUGH THE BUYER, AND UNDER
NO CIRCUMSTANCES WILL THE SELLER BE LIABLE FOR ANY INCIDENTAL, INDIRECT,
SPECIAL, CONSEQUENTIAL, PUNITIVE OR EXEMPLARY DAMAGES UNDER ANY INDEMNITY
PROVISION OR OTHERWISE.

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