(MO-KAN LIVESTOCK VIDEO AUCTION)

LIVESTOCK CONTRACT

INSPECTION AND WARRANTIES:

Seller shall deliver within ninety-five percent (95%) of the above stated number of livestock, exclusive of any stags, crippled, blind, bad eyed, locoed, lump-jawed or otherwise unmerchantable livestock, and any livestock that are not as described above. Buyer or his agent must be present at delivery and as the livestock are removed by the carrier, such action constitutes irrevocable acceptance of the livestock by the Buyer. Any grievances shall be taken care of the day of delivery. Buyer's failure to so notify MO-KAN LIVESTOCK MARKET, INC. shall constitute irrevocable acceptance of the livestock and bind him to pay the contract price for the livestock. Seller shall furnish to Buyer any brand and health certificates required by state and federal law from which the cattle are shipped. If additional health certificates, tests, or documentation is required for shipment, it shall be at the Buyer's request and expense. Seller warrants that Seller has good and marketable title to the livestock and that the livestock will be delivered free from all security interest, liens or encumbrances. Said livestock are subject to a lien, security interest or chattel mortgage in favor of ___________________________________________________________________________________________ which shall be satisfied by Seller prior to or at delivery. Seller agrees to defend title to the livestock and indemnify and hold MO-KAN LIVESTOCK MARKET, INC. and Buyer harmless from any and all loss or damage on account of any liens, encumbrances, or other defects in title. MO-KAN LIVESTOCK MARKET, INC., MAKES NO WARRANTIES EXPRESS OR IMPLIED AS TO MERCHANTABILITY OR FITNESS FOR PARTICULAR PURPOSE. UNLESS OTHERWISE WRITTEN IN THIS CONTRACT, SELLER MAKES NO WARRANTIES EXPRESS OR IMPLIED AS TO MERCHANT-ABILITY OR FITNESS FOR PARTICULAR PURPOSE.

RISK OF LOSS: The risk of loss of the livestock passes to Buyer at the time that the livestock are loaded on the carrier.

VIDEO FEE’S & COMMISSION: Video Fee: $2.00 per head due the day the cattle are videotaped. Commission: 2 % of gross sales on calves and feeders. 3% on breeding stock.

MO-KAN LIVESTOCK MARKET, INC. hereby acknowledges receipt of a consignment fee/video fee, advanced by Seller, in the amount of $_______. This consignment fee will be refunded to Seller at the time of delivery. PAYMENT OF CONSIDERATION: As consideration for the livestock, Buyer agrees to pay MO-KAN LIVESTOCK MARKET, INC. for the benefit of Seller the price stated above, adjustable by the SLIDE, if applicable.

Payment of the price shall be governed by the provisions of this agreement. Buyer agrees to pay MO-KAN LIVESTOCK MARKET, INC. for the benefit of SELLER $40.00 per head on _____ head, the sum of $ _________, as part payment, upon entering into this contract and to pay the remaining balance to MO-KAN LIVESTOCK MARKET, INC. at the time of delivery. Buyer or agent must be present at delivery and payment is to be made in full day of delivery.

If there will be multiple shipments, Buyer agrees to pay for each day's delivery in the manner stated herein. All payments are due and payable to: Mo-Kan Livestock Market, RR2 Box 152, Butler, MO 64730. Seller acknowledges that it has received from MO-KAN LIVESTOCK MARKET, INC. $30.00 per head, the sum of $ _______________, as part payment for the livestock and agrees that the remaining balance, (including the $12.00 per head received from Buyer and not paid to Seller which is being held in MO-KAN LIVESTOCK MARKET, INC.'s Custodial Account for Shipper's Proceeds as a deposit on commission until delivery when the actual commission can be determined), less commission and other lawful charges shall be paid at delivery.

By signing below, I/We acknowledge that I/We have read, understand, and agree to terms stated on the front side and reverse side of this agreement. In witness hereof, each party to this agreement has caused it to be executed at Mo-Kan Livestock Market, Inc. on the date indicated above. PAYMENT FOR LIVESTOCK BY BUYER SHALL BE MADE BY WIRE TRANSFER BY THE CLOSE OF THE NEXT BUSINESS DAY OF CATTLE DELIVERY. DOWN PAYMENT MAY BE MADE BY OVERNIGHT MAIL BY THE CLOSE OF THE NEXT BUSINESS DAY AFTER CATTLE PURCHASE.

OPEN HEIFERS: Unless otherwise stated, heifers sold in this contract are not guaranteed open.

PARTIAL INVALIDITY: No partial invalidity of this agreement shall affect the remainder.

SECURITY AGREEMENT: Buyer hereby grants to Mo-Kan Livestock Market, Inc. a security interest in the livestock described herein, including the products and proceeds thereof, until such time as Mo-Kan Livestock Market, Inc. actually receives final payment of the full purchase price of said livestock on any payment item issued or until Mo-Kan Livestock Market, Inc. actually receives full and final payment of the livestock by cashier's check or wire transfer of funds.

TRANSFER OF TITLE: Title to livestock does not transfer to buyer, even upon delivery, until Mo-Kan Livestock Market, Inc. has received payment in full and those funds have been collected or honored by the financial institution on which the payment instrument was drawn.

DEFAULT: In case of default by either Buyer or Seller, the defaulting party shall be liable for actual and incidental damages as are permitted by the Uniform Commercial Code, plus court costs and attorney's fees, as well as to any available equitable relief. Default shall exist if full and final payment is not received within one business day from the date Buyer takes possession of the livestock described herein, or if the check given in payment for the livestock is dishonored, or upon the death, bankruptcy or insolvency of the buyer or upon the sale of said livestock without Mo-Kan Livestock Market, Inc.'s written permission. Upon default Mo-Kan Livestock Market, Inc., with or without notice, may exercise any and all rights accorded it by law and this contract, including but not limited to the following: If Buyer defaults, he will forfeit his $40.00 per head part payment. Default shall exist upon Seller's failure, for any reason whatsoever (other than an act of God), to deliver to Buyer, all cattle purchased hereunder, as herein required, Seller shall promptly refund to Mo-Kan Livestock Market, Inc. the part payment advanced on such undelivered cattle, plus commission. Mo-Kan Livestock Market, Inc. will refund to the Buyer the total amount of the part payment advanced by the Buyer. This shall constitute the only liability of Mo-Kan Livestock Market, Inc. to Buyer. Mo-Kan Livestock Market, Inc. shall also have the option, in the event of the default by Buyer, of paying Seller in full for the cattle and of holding and reselling the cattle in a reasonable commercial manner. In that event, Buyer shall be liable to Mo-Kan Livestock Market, Inc. for all damages incurred, including costs and decline in market value of the cattle.

GOVERNING LAW: Jurisdiction and venue for any and all causes arising under this contract shall be governed by the laws of the State of Missouri. Venue shall lie only in the State of Missouri.

ACT OF GOD: Seller and Mo-Kan Livestock Market, Inc. shall not be liable for any delay or failure to deliver any or all of the livestock in case delay or failure is caused by any act of God or by destruction in whole or part of the livestock. When Seller claims excuse for nonperformance under this paragraph, reasonable notice and documented proof must be given to Buyer and Mo-Kan Livestock Market, Inc..

NO ASSIGNMENT OR DELEGATION: No right or interest in this contract shall be assigned by either Buyer or Seller, and no delegation may be made of any obligation owed by Buyer or Seller under this agreement. Any attempted assignment or delegation shall be void and totally ineffective for all purposes.

ENTIRE CONTRACT: This contract contains the entire agreement between Seller and Buyer and cannot be changed except in writing signed by both parties. SELLER:__________________________BUYER:_____________________________________ BY:______________________________BY:_________________________________________ LIEN HOLDER: ___________________________MO-KAN REP: _______________ BY & TITLE:____________________________________