2.10 Applications must be submitted to the Testing Centre at least two weeks
before commencement of any test. Applications must be fully completed and
signed before commencement of any test.
2.11 No bull(s) may be withdrawn from the test unless the official from the SA STUD
BOOK recommends it and the Applicant agrees that this decision shall be in the
sole discretion of the concerned official.
2.12 All tests are performed under the supervision of the SA STUD BOOK and subject
to compliance with all regulations pertaining thereto.
2.13 The bull(s) will be burned with the relevant merit brands at completion of the
test.
3.  COSTS AND PAYMENT THEREOF
3.1 The applicant accepts liability for payment of the following costs:

3.1.1 All transport costs to and from the Testing Centre
3.1.2 All costs incurred during the testing period, consisting of but not limited
to direct feed costs, veterinary costs, insurance premiums, and
administration and handling fees.
3.1.3 Interest on all amounts overdue at an interest rate equal to the prime
overdraft rate of Standard Bank.

3.2 The testing cost per animal is determined from time to time (Please contact
Pieter Booysen on 082 384 0020). Note that additional cost for feed, veterinary
services and medicine, as well as administration and handling may arise.

3.3 Payment of all these amounts will be effected as follows:

3.3.1 A deposit of 50% + VAT of the test fee per animal within 7 (seven) days
calculated from the date of delivery of the bull(s).
3.3.2 A second payment of 50% + VAT of the test fee per animal within 7
(seven) days from date of invoice for which amount the Applicant will
be invoiced approximately 2 (two) months after date of delivery of the
bull(s).
3.3.3 A third payment within 14 (fourteen) days from date of invoice for
which amount the Applicant will be invoiced on completion of the tests
approximately three and a half (3.5) months after date of delivery of
Int.
the bull(s). In the event that the amounts mentioned in 3.3.1 and 3.3.2
above exceeds the costs incurred by the Performance Testing Centre a
credit note will be issued by Sernick and payment of such amount will
be effected to the Applicant within 14 (fourteen) days calculated from
the date of issuing the credit note.

3.4 In the event that the Applicant fails to pay any of the amounts mentioned
in sections 3.3.1 and 3.3.2 above, Sernick shall have the right to
immediately withdraw the bull(s) from the Testing program without
limiting their rights to institute further legal proceedings against the
applicant.
3.5 In the event that the Applicant fails to pay the amounts mentioned in 3.3
above, Sernick shall have the right to institute legal proceedings against the
Applicant and the Applicant shall be liable for all costs incurred on an
attorney and client scale. Sernick will not release any bull(s) from Sernick
premises if any payment terms as set out above not met.

4. GENERAL

4.1 The Performance Testing Centre shall be entitled to slaughter a bull that does
not meet the required relevant minimum breed standard on the condition
that the Applicant’s consent be obtained in which instance the net proceeds
shall be for the account of the Applicant alternatively the Applicant shall be
entitled to take repossession of the bull(s) against payment of all amounts
due to Sernick.
4.2 Sernick will not be liable for any damage caused to the Applicant arising from
the injury and / or death of a bull during transportation to and from the Test
Centre and the Applicant hereby indemnifies Sernick against any such claim in
the event that the insurance company repudiates any such claim.

5. This is the entire agreement between the parties and no amendments will be
of any force and effect unless it is reduced to writing and signed by both
parties.