TERMS AND CONDITIONS Terms: Terms of sale are cash unless satisfactory credit arrangements have been made by the seller prior to the sale of any animal so affected. Bidding: All animals sell to the highest bidder. Any disputes or challenges regarding bids shall be settled by the auctioneer and his decisions shall be final. Mailed or telephoned bids may be forwarded to the sale management or auctioneer and will be handled with strictest confidence. Prior arrangements for telephone bids at sale time must be made with sale management or the auctioneer. Insurance of purchases and risk: All are at the owner's risk and become the property of the purchaser when declared sold by the auctioneer. Arrangements have been made to have insurance available when making settlement. Accidents: All precautions possible will be taken to protect the safety of buyers and others attending the sale. Nevertheless, no responsibility will be assumed by the auctioneer, sales management or the host farm in the event of accidents or of loss or damage of property. Health Tests: All animals have been tested and found negative for brucellosis and tuberculosis. The sale Veterinarian will assist buyers on health status for specific states and testing for anaplasmosis and blue tongue as this is required for export to Canada. Breeding Guaranteed and Definitions Females: Females are guaranteed to be breeders, with the exception of female calves sold at side of dam, injury or disease occurring after time of sale, gross negligence or willful misconduct on the part of the purchaser, females used in ovum transplant after time of sale, females shown competitively after time of sale, and cows with calf at side. Cows represented as being "safe in calf" will have been examined by a licensed veterinarian and are so guaranteed. They are considered breeders without further guarantee. Females with a "due to calf" date in the remarks column are considered safe in calf. A bred female is a female known to have seen served by a bull either by natural breeding or artificial insemination, but it does not necessarily mean that this female is safe in calf to that service. A pasture-bred female is a female that has been exposed for the time stated, but it does not necessarily mean that this female is safe in calf to that bull. An open heifer is a virgin heifer that has never been exposed to a bull either through natural service or artificial insemination. An open cow is a cow that has not been exposed to a bull either through natural service or artificial since the birth of her last calf. Calves sold off their dams (split pairs) shall carry the full breeding guarantee. Males: Bulls are guaranteed to be breeders (defined as the ability to settle healthy cows by 18 month of age) with the exception of bull calves sold at the side of their dam, injury, or disease occurring to the animal after time of sale and gross negligence or willful misconduct on the part of the purchaser. Any guarantee with respect to the ability to freeze semen shall be made by separate agreement between the buyer and seller. Adjustments: The following adjustments do not preclude the right of buyer and seller to mutually agree upon other terms and conditions for settlement of any dispute. All claims for adjustment or refund must be made in writing either within six (6) months from the time of sale or no later than six (6) months after the animal reaches eighteen (18) months of age whichever occurs first with the exception of claims involving misrepresentation of service sire or as otherwise provided herein. If a female is sold as "safe in calf" to a given sire or sires on a specified date or dates and proves not be represented the buyer is entitled to a refund of the purchase price from the seller upon return of the animal to the farm of the seller at the seller's expense. In the event an animal is claimed to be a non breeder, the animal may be returned to the farm of the seller, at the buyer's expense, if in good physical condition and the return is in compliance with the health requirements of the state where purchased. The seller shall be entitled to a six(6) month trial period in which to prove the animal is a breeder, the seller shall, at his option, replace the animal with another of equal value. This shall be deemed full satisfaction and settlement. Any animal returned will be at the purchaser's risk. No guarantee is given concerning a pregnant female's gestation period or calf's condition. The seller is not responsible for damage caused by foreign bodies after the animal has been sold nor for sickness not apparent at sale time. If a female is sold as "open" and proves to be with calf at time of sale and examined pregnant within sixty (60) days after sale, the Burma return the animal to the farm or seller prior to calving for a refund of the full purchase price or for another mutually acceptable adjustment. It shall be the obligation of the seller to bear all expenses incurred for transportation of the animal in question to the farm of the seller. Any adjustment provided herein, if selected shall absolve the seller from further liability. Definitions and Guarantees Registrations and Transfers: Each animal which is cataloged, offered and sold as a registered animal has a certificate of registry available at time of sale. When an animal is sold "eligible for registry" or "registry applied for," the seller shall be responsible for obtaining the certificate of registry and for the proper transfer of the certificate to the purchaser including full payment of transfer fees. Purchaser's Risk: Each animal becomes the property of and therefore is also the risk of the purchaser as soon as it is sold, except it shall be the obligation of the seller to see that animals are fed and cared for free of charge to the buyer until loaded for shipment or until the expiration of forty-eight (48) hours after the sale, whichever occurs first. Announcements: Any error or changes in information contained in the catalog will be announced from the auction block. Such announcements shall take precedence over information contained herein. Rights and Obligations: The above terms and conditions of sale constitute a contract between the buyer and seller of each animal and shall be equally binding on both. Animals resold following purchase in this sale shall constitute a separate transaction and the rights and obligations of the parties connected thereto are not covered by the above terms and conditions of this sale. Neither the host farm, auctioneers, nor any other person connected with the management or conduct of this sale assumes any liability, legal or otherwise, except as set forth above. Payment; Cash & Bankable check. ALL PAYMENTS will be made to KIST LIVESTOCK

Dear Cattlemen, Welcome to the 38th annual Kal-Kota Red Angus and Hybrid Bull Sale. We try to present the bulls in a condition that allows you to evaluate the individual bulls, but ensures the structural soundness. We do this with a high roughage ration and free choice hay. Increasing the energy to produce a better looking bull at this age is not an option for us, as we know that will decrease the longevity of the bull. The bulls have current EPDs to aid in your selection of calving ease, growth traits, milking ability, etc. The EPDs should only be part of your selection as the accuracy is low at this age. We at Kal-Kota have always stressed performance, fertility and maternal traits, that in turn will give our customers the greatest return per dollar invested. We avoid fads that will ultimately cost our customers damage and decrease your bottom line. We have moved our breeding program to a higher standard by aggressively increasing our embryo transplant program. We have done this by extending the genetics of a few superior cows that have been able to produce superior bulls and heifers. Performance in today's cattle market has never been so rewarding, we have always stressed weaning weight and gains in the feedlot! Insurance is available sale day on your purchases, inquire at the office at Kists. We strongly recommend you take insurance on your bulls. If you have any questions or concerns, please don't hesitate to give us a call at 701-475-2694 or 701-471-4006. (cell) Sincerely, Ed, Anne & Michael Kalianoff