Schacher. Auction Services Robert Schacher

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Schacher Auction Services Robert Schacher 1/23/2018 Dear Wagyu Breeder, On behalf of the Texas Wagyu Association I am pleased to invite you to participate in The Steaks are High Ninth Annual Sale. The Sale will take place on April 21, 2018 at Tenroc Ranch, Salado, TX. The Texas Wagyu Association sponsors the Annual Sale to provide its members an opportunity to market their top genetics and to showcase their programs. Please take some time and carefully review all of the enclosed documents. There are several changes and requirements that are different and many that have been added from years past. Due to some issues from past sales (Both ours and others) the genetic testing, health requirements and registration requirements are all new this year. Entries are due to Schacher Auction Services by 3/15/2018 and the preferred delivery is by mail. There is a return postage paid envelope enclosed with this letter. There is a $100 entry fee per lot (Cow/Calf pairs are considered 1 Lot) that is to be returned with the entry forms. This entry fee will be applied to your final sale expense. For an explanation of the final sale expense see item #11 on the enclosed information. Each consignor needs to fill out one Consignor Information Form. Also, fill out a Nomination Form for each lot consigned, and make sure you sign the Nomination Form. Please make sure you provide me the registration number of the animal selling or the sire and dam of any embryos or pregnancies. Make sure you read the rules on photographs and footnotes enclosed. I am excited to be working with the Texas Wagyu Association to present your Ninth Annual Sale. If you have any questions or if there is anything I can help you with, please do not hesitate to call me at 817-219-0102. Sincerely, Robert Schacher wagyusales@schacherauction.com 817-219-0102 Cell 817-862-7823 Fax P.O. Box 33804 Fort Worth, TX 76162

TEXAS WAGYU ASSOCIATION THE STEAKS ARE HIGH ENTRY RULES LIVE CATTLE 1. The deadline for entries in this sale is 03/15/2018 2. There is a $100.00 entry fee per lot consigned that will be applied to the final total sale expense. This fee is non-refundable in the event of non-arrival of sale lots or no-sales of sale lots. 3. Consignors must be a member in good standing with the Texas Wagyu Association and American Wagyu Association. If you are not a member, you will find an application for membership at the Texas Wagyu Association s website www.texaswagyuassociation.com and then clicking on the Membership option. 4. All live registerable animals, regardless of age, must be registered with the American Wagyu Association at the time of entry, and the original registration paper ready for transfer (signed) will be included with entries. No cattle will be settled for until all paper work is complete and new owners have possession of sale cattle, unless arrangements have been agreed upon by both buying and selling parties. 5. Genetic Disorders: All animals, semen, and embryo lots entered in this sale must be tested for the genetic disorders unless their parents or grandparents have been tested and found to be free. All potential carriers must be tested prior to entry. It will be noted in the catalog that due to the complexities of genetic testing, there is no guarantee that the published results are 100% accurate and the sale management assumes no liability whatsoever if the results are later found to differ. Status of genetic defects will be shown in the catalog and expressed in a format similar to format the Texas Wagyu Association has expressed these results in the past. 6. Photography: If you wish for your lots to have pictures included, they need to be submitted electronically to wagyusales@schacherauction.com and they must be high resolution (At least 2 Megabytes). In addition these need to be high quality, well lighted photos, preferably taken and submitted by a professional photographer. A note here is for you to take a look at the photo and decide, would you buy this lot based on this picture? Remember that a picture is worth a thousand words, but if those are negative words it will hurt your lots, not help them. All pictures submitted are subject to approval by sale management. 7. Keep Footnotes to 150 words or less. Make your points as quickly and concisely as possible. 8. All animals consigned to this sale regardless of location orientation must be accompanied with a Certificate of Veterinary Inspection (Health Paper). This includes cattle that originate in Texas!! This certificate must be compliant for interstate travel. Texas is a Brucellosis Free state so a test is no longer required. However, all cattle must have a unique number tagged to them for identification. Tell your vet that you need a Federal ID (Bangs) clip in all animals and that number must be on the health paper. For cattle coming from out of state, please have Page 1

your veterinarian check the status of your area to get cattle into Texas, as some counties require a negative Brucellosis test. A list of requirements can be found at the following website: http://www.tahc.state.tx.us. All animals in this sale both male and female must have a negative test for Persistently Infected BVD (PI BVD). All animals in this sale must have a negative Johnes test. All breeding age bulls (12 Months of age or older) must have a negative Trichomoniasis test. Texas recognizes the PCR test for Trich. All Bulls 12 months old or older must have a breeding soundness exam. All bulls under 12 months will sell as guaranteed breeders. All females selling as bred must be palpated for pregnancy. We need the number of months or days bred on your health paper. All females sell as guaranteed breeders. 9. All cattle should be well presented. They must be sound, high quality cattle that are in proper body condition and in good health. Cattle with flaws, bad eyes, structural issues etc. will be eliminated from the sale. Please clip the heads and necks of cattle and have them as clean as possible. Facilities are available at the Sale location for preparation. 10. Tags Cattle will be tagged with lot numbers at the sale site. We will also be checking to make sure that animals have a permanent identification mark (Brand or Tattoo). If not we will insert a tattoo at the sale site. 11. The sale expense for live cattle selling in this sale will be figured using the following formula: Total Expenses/Sale Gross X 100 = % Sale Expense. While it is impossible to predict with any certainty what this expense will be, it has been between 11 and 12 percent for the last 3 sales. Your entry fee will be applied to the final expense. SETTLEMENT: Schacher Auction Services is licensed by the Texas Department of Licensing and Regulation and further registered with the United States Department of Agriculture under the Packers and Stockyards Administration and P&S Act. Therefore I am bound by their rules of settlement for cattle. Once all entries have been paid for by the buyers, I will distribute proceeds to the sellers. If there are still outstanding receivables thirty (30) days after the sale, I will distribute proceeds to the sellers whose cattle have been settled for. I can not advance funds prior to these requirements being met, so please do not ask for that favor. Page 2

LIENS: If any cattle, embryos or semen have pending liens against them from financial institutions or other entities, I am required by law to satisfy those lien holders first. I would appreciate a note from any consignors informing me of any liens against your assets being sold in this auction. Further, all storage facilities for semen and embryos will be contacted to ensure that a proper release has been given by each consignor, and that each of those facilities is willing to release embryos and semen before those consignors are paid. A simple Uniform Commercial Code search will be performed. FORMS: Please fill out one Consignor Information Form per consignor, and one Nomination Form for each lot. Also, I need a signature on each nomination form. This allows me to work with the AWA on the proper transfer of your lots. In addition, by signing the nomination form, you agree to follow the rules stated in this letter. SEMEN AND EMBRYOS Due to excessive semen and embryo entries over the past few years, this will be approached differently this year. It will take place as follows: 1. Consignors are allowed up to 2 Lots that will be included in the live Auction, those two lots will be limited to 5 Embryos or 10 units of semen per lot. 2. Anything in access of the above will be cataloged in the Steaks are High catalog, but will sell in a timed online auction. 3. Timed Internet Auction will take place in conjunction with all of the events the weekend of the Steaks are High Sale. Screens and Computers will be available at the sale site for attendees to use to bid. 3. The sale expense for Frozen Genetics will be 15%. The $100 entry fee for each lot will be required, and will be applied to the 15% sale expense. Page 3

SCHACHER AUCTION SERVICES CONSIGNOR INFORMATION FORM Spring Wagyu Please fill out the following form as accurately and completely as possible. This information will help me contact you, as well as, correctly make out the check for your proceeds. Consignor Name: How do you want to be listed in the Catalog if different than above: Contact Person: Best Contact Phone: Other Phone: Address: City ST Zip Email Website Number of Lots being consigned to this sale Fill out the following information if your check needs to be made out differently than above: Exact name to appear on check: Address: City: ST Zip Please submit this form with your Nomination Form to: Schacher Auction Services P.O. Box 33804 Fort Worth, TX 76162

Texas Wagyu Association Invitational Sale Nomination Form Please complete the following form for each lot nominated (make copies for multiple lots) And submit with $100 nomination fee for each lot by March 15, 2018. Submit to: (Return Postage Paid Envelope Enclosed) Schacher Auction Services P.O. Box 33804 Fort Worth, TX 76162 Fax 817-862-7823 Consignor _ Open Heifer Fall Cow/Calf Pair Flush Bred Heifer Spring Cow/Calf Pair Embryos Bred Cow Bull Semen Pregnancy Animal Name: Birth Date Registration # Tattoo/Herd #: FB or PB %: Color: Embryos or Pregnancies: Sire Reg# Dam Reg # Please attach a copy of the animal s pedigree to this nomination form. For embryos attach the sire and dam s pedigree. For pregnancies, attach the sire and dam s pedigrees and give information about the recipient (breed, when due). Make sure to fill out the breeding information below. Animals must be registered with the American Wagyu Association Calf Information for pairs: Birth Date Sex: Cow or Bull Sire: Registration number for Calf (If Pending, must be registered by sale day) Breeding Information: Sells open Bred A.I. on to (bull): Reg# Pasture exposed from: until: to (bull):reg# Footnotes: (Include any individual ratios, progeny ratios, progeny sales, etc. Use Back if needed.) If you have Questions, Please Contact Robbie Schacher (817) 219-0102 or rob@schacherauction.com Signature Date Affidavit: The above signature allows Schacher Auction Services, Robert C. Schacher to act as an agent for the nominated cattle above for all transfers or other actions required to guarantee proper transfer to the new owner. This signature releases Schacher Auction Services, Robert C. Schacher and the Texas Wagyu Association and its Officers from all liability associated with this sale. This signature guarantees that above cattle sell without liens, if liens are filed against these cattle, please notify Schacher Auction Services. Signature verifies that I have read and agree to follow all rules of this sale.