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Auction Agreement for Colombia

Bidding Instructions and Pricing

Colombia

Cup of Excellence Internet Auction

The 2022 Cup of Excellence Internet Auction is sponsored by The Alliance for Coffee Excellence,
Inc. (ACE) and Asociación Colombiana para la Excelencia del Café (ASECC). If assistance is required
during the auction please contact darrin@cupofexcellence.org, david@mcultivo.com, or
kathia@cupofexcellence.org

Acceptance of Terms and Conditions
Your participation in this auction indicates your review and agreement to the following terms.
Should you purchase any Cup of Excellence coffee at this auction you agree to the terms and
conditions of purchase and shipping included in this agreement. Any buyer of any Cup of
Excellence coffee through the auction or through a secondary channel agrees to the use and
restrictions of the Cup of Excellence® mark. Any misuse of this mark may be cause for legal
proceedings. It is the responsibility of the bidder to determine the quality and appropriate value.
Bidders should assess the value of each coffee based on quality in the cup and its appropriateness
for their company. Farm information is for educational purposes only but can be used to help sell
the winning coffees.

Auction Opening Date and Times
Auction will open for bidding on November 22nd at 9:00AM (New York)
Your opening time may vary- please check based on 9:00AM EDT (New York)
The Auction will open for bidding at
● 06:00 (Los Angeles)
● 09:00 (New York)
● 14:00 (London)
● 15:00 (UTC Oslo/Amsterdam)
● 17:00 (Moscow)
● 18:00 (Dubai)
● 22:00 (Hong Kong)
● 23:00 (Tokyo/Seoul)
● 01:00 November 23rd (Melbourne/Sydney)

Coffee Lots
The 22 coffee lots being offered for sale through this internet auction were designated Cup of
Excellence (COE) winners at the 2022 Colombia competition. The designated coffees were blindly
cupped through the following process:
Preselection stage: August 23rd – August 27th with the 10 National Judges, held at Club
Campestre de Ibague, with Paul Songer as the head judge.
National stage: August 29th – Sept 1st with the 10 National Judges Club Campestre de Ibague,
with Paul Songer as the head judge.
International stage: The designated coffees were blindly
cupped throughout the month of September 2022 by a panel of COE experienced cuppers
designated by ACE in 12 Global Coffee Centers (GCC) around the world.
No other coffee can be sold using this designation. Online bidding for any Cup of Excellence lots
is only available through this website. Each lot is separate and distinct. The top 3 lots scoring 90+
points have already been separated into 2 distinct lots labeled A and B. Samples have been made
available.

Auction Pricing
Pricing for the lots are figured in USD dollars and cents per pound. A minimum opening price of
$6.50 for 90+
$6 for 88 - 88.99
$5.50 for 87 - 87.99
Incremental bids must be $.10 (ten cents) per pound or any amount greater than $.10 (ten
cents) per pound.

Bidding, Opening and Closing
All lots will open together with the same minimum price. The bidding page will indicate “OPEN”
until all lots have at least one bid after which a 3-minute countdown clock will begin. A bidder
may place multiple or single bids on any or all lots during the open auction or during the 3-minute
countdown clock. Each bid on any lot resets the clock to 3 minutes. A clock on the bidding page
will indicate the time remaining for the auction. Once there are no more bids on any lot during
the 3-minute time window the auction and all lots will close for bidding. A PENDING notification
does not end the auction even though bidding may cease. No bid is final until the FINISHED
notification appears. Once the auction software indicates FINISHED the highest bid wins the lot
and all lots are closed for any additional bidding. At the conclusion of the auction, the buyer for
the lot and the person responsible for payment and for shipping coordination will be the bidder
placing the highest bid or auto bid for that lot. Should there be two identical auto bids the first
auto bid placed wins the lot.

Proxy and Auto Bids
An auto-bid or proxy feature is available to any bidder wishing to allow the software to place
their next highest bid. A bidder can place a high bid on any coffee lot using the auto-bid function.
The software will then place a ten cent higher bid above a competitive bid until the auto bid price
is reached. The software will not place any higher auto-bid amount unless there is a competitive
bid for that lot. Each Bidder will be able to view the current high bid for a Lot at any time during
the Auction. Individual bids once accepted by the auction software, may not be revoked or
withdrawn. Buyers are fully responsible for the bids placed and must comply and accept their set
purchased price during the auction should they result winners of the lot. However, you may
cancel an auto-bid to prevent the system from placing further bids on your behalf.

Packing Fee
All Cup of Excellence coffees are vacuum packed in cartons each containing 2 (two) 15kg bags.
Successful bidders will be charged $.20 (twenty cents) per pound mandatory fee for vacuum
packing. Bidding calculations and vacuum packing fee are based on actual pounds after milling
and packing the coffees. The number of 30kg boxes as well as the weight in pounds will be shown.

Communication During and After Auction
Each Bidder will log in using his/her confidential password. All bids will be identified during the
auction with a bidding number not a company name. During the auction the software will
communicate any outbids, any auction issues, notifications or final successful bids using the email
address registered for that bidder. It is the bidder’s responsibility to ensure that the registered
email is correct. Contact ACE staff for verification if uncertain.

Posting the Results
30 minutes or earlier after the end of the auction successful bidders will be identified by their
company names. The auction results will be posted on the ACE website. Buying group members
and their company identification is the responsibility of the actual bidder. Buyers can also be
added at a later date.

Payment and Shipping Requirements for

Colombia

Cup of Excellence Internet Auction

The 2022 Cup of Excellence Internet Auction is sponsored by The Alliance for Coffee Excellence, Inc. (ACE)
and ASECC. If assistance is required immediately following the auction please contact
darrin@cupofexcellence.org, david@mcultivo.com, or kathia@cupofexcellence.org

Acceptance of Terms and Conditions
Your participation in this auction indicates your review and agreement to the following terms. Should you
purchase any Cup of Excellence coffee at this auction you agree to the terms and conditions of purchase
and shipping included in this agreement. Any buyer of any Cup of Excellence coffee through the auction
or through a secondary channel agrees to the use and restrictions of the Cup of Excellence® mark. Any
misuse of this mark may be cause for legal proceedings. It is the responsibility of the bidder to determine
quality and appropriate value. Bidders should assess the value of each coffee based on quality in the cup
and its appropriateness for their company. Farm information is for educational purposes only but can be
used to help sell the winning coffees.

Coffee Lots
The 22 coffee lots being offered for sale through this internet auction were designated Cup of Excellence
(COE) winners at the 2022 Colombia competition. The designated coffees were blindly cupped through
the following process:
Preselection stage: August 23rd – August 27 with the 10 National Judges, held at Club Campestre de
Ibague, with Paul Songer as the head judge.
National stage: August 29th – Sept 1st with the 10 National Judges Club Campestre de Ibague, with Paul Songer as the head judge.
International stage: The designated coffees were blindly
cupped throughout the month of September 2022 by a panel of COE experienced cuppers
designated by ACE in 12 Global Coffee Centers (GCC) around the world.
No other coffee can be sold using this designation. Online bidding for any Cup of Excellence lots is only
available through this website. Each lot is separate and distinct. The top 2 lots scoring 90+ points have
already been separated into 2 distinct lots labeled A and B. Samples have been made available.

Packing Information
The Colombia Cup of Excellence coffees are vacuum packed in cartons each containing 2 (two) 15kg bags.
Successful bidders will be charged $.20 (twenty cents) per pound mandatory fee for vacuum packing in
addition to the per pound cost of the auction price for each lot. Bidding calculations and vacuum packing
fee are based on actual pounds after milling and packing the coffees. The number of 30 kg boxes as well
as the weight in pounds will be shown. A broken seal on any vacuum package does not automatically
warrant a claim or indicate a quality change.

Financial Responsibility and Group Bidding
The individual bidder placing the highest bid at the close of the auction is responsible for the financial
payment to the exporter of the entire lot. Individual bids once accepted by the auction software, may not
be revoked or withdrawn. The exporter may approve multiple payments and multiple shipping
instructions for a single lot but only if the successful bidder requests the approval and submits all of the
shipping instructions within 7 days of the auction. If the exporter or the country partner denies the
request for any reason the bidder will be held liable for the entire payment regardless of group purchase.
If a lot is split and sent to more than one destination the buyer will be responsible for any additional costs
or fees associated with that export.

In a situation where the farmer is responsible for the payment of the transport, it is expected the winning
bidder will designate a shipping method which will not substantially affect the costs the farmer is charged
within the origin country to deliver the coffee to the shipping facility such as but not limited to: port,
airport, third party designated exporter. The management of the Cup of Excellence program has the right
to seek and provide the winning bidder fair shipping options considered equative for the selling and buying
parties.

The responsibilities of the lead bidder of a buyer group are to review, approve and socialize all terms and
conditions with each member of their buying group. This bidder agreement is only sent to those
registered to bid in the auction, if the members of your buying group are not registered for the auction
the lead bidder is required to share the agreement to get each member’s approval. It is required that the
lead bidder in the auction to collaborate with the exporter facilitating communication and expediting the
payment process if any setbacks are encountered regarding payment or complications in communicating
with other buyers from the group. Should there be any default from the additional group bidders, the lead
bidder must assume financial responsibility for the defaulted coffee if no interested buyers are found
If a lot is split between several buyers and sent to more than one destination, all additional buyers of that
lot will be charged with an extra fee per shipment to cover the additional administrative costs associated
with the export depending on the transport mode:
● FedEx: $50
● Air cargo: $200
● Sea freight: $350

Payment Requirements
Full payment of the lot(s)and the packing fee(s) is required prior to shipment unless other requests are
made in writing and approved in advance. Cash against documents must also be approved in advance of
the auction. Prepayment of the lot is required if moved to another exporter to be shipped. Shipment,
quality and delivery responsibility will revert to the new exporter.
Full payment is due 30 (thirty) days after the close of the auction regardless of ship date or method. A
minimum 2% monthly late may be charged for any lots not paid within 30 days.

Shipping Requirements
Shipping instructions are to be sent to ASECC within 7 (seven) days of the close of the auction by the
successful bidder or the bidder’s designated importer. Bidders can nominate any importer. A COE
cooperating importer is recommended. These can be found on the ACE website at
www.allianceforcoffeeexcellence.org

All Lots must be shipped within 45 days of the auction. No claim may be made to the exporter, farmer,
Alliance for Coffee Excellence, or ASECC on any COE lot shipped after 45 days. COE lots for Colombia are
shipped, EX Works1 for Sea shipping and FCA2 or Air shipping (recommended), net weight and applicable
fees- airfreight is available at an extra cost and can be coordinated by the exporter. Lots will be shipped
as per the instructions and at the cost of the successful bidder. Any changes that result in extra fees will
be paid by the buyer.

If a buyer wishes to combine other Colombia lots with COE lots, the buyer must designate a different
exporter and ASECC will sell the lot Ex-Works at the Vertical Coffee Mill warehouse in Armenia to the
other exporter. The buyer's chosen exporter must pay ASECC before the lot is released and will receive a
$.20 (twenty cents) per pound discount from the final auction winning bid price. Vacuum fee will still be
charged as normal at $.20 (twenty cents) per pound.

ASECC does not make consolidations with other exporters due to Colombian consolidation regulations at
shipping ports requiring coordination with other exporters, port authorities, anti narcotics police and
government agencies. This process requires procedures outside of ASECC’s control causes difficulties, and
delays and can have high transport costs, which ultimately impact the financial reward to the farmer. To
ship COE lots and other Colombian lots with a different exporter in Colombia, the option is for the buyer's
chosen exporter to purchase the lot Ex-Works Vertical Coffee Mill Armenia, where a $.20 (twenty cents)
per pound discount will be generously applied.

THE NOMINATED EXPORTER
Exporter Name: Asociación Colombiana para la Excelencia del Café - ASECC
Exporter Address: Calle 60 A #3d-32 Primer Piso Puerta Negra. 110231 Bogotá, Colombia
COE Coffee Warehouse Address: Kilómetro 2 vía al Aeropuerto Costado derecho Bodegas 2 y 3 Armenia,
Quindío.
Exporter Contact Name: Cesar Diaz
Exporter Phone numbers: +573113395562
Exporter Email Address: gerencia@verticalcoffeeco.com
Copy to: emilio.bonnet@asecc.co, darrin@cupofexcellence.org, gary@cupofexcellence.org,
kathia@cupofexcellence.org, and gabriela@cupofexcellence.org
Box Dimensions: 55cm*45cm*20cm

1 *EXW:the seller has fulfilled its obligation when the goods are made available to the buyer, usually at the seller's location. The seller should package the goods appropriately or as specified in the agreement between both parties.
2 FCA: export cleared goods are delivered by the seller to the carrier at the named and defined location mentioned in the
contract.

All buyers must contact the exporter, coordinators and ACE within 7 days of the close of the auction. Any
additional costs and/or special requests will be charged to buyers. The buyer is responsible for always
keeping the ACE team looped in all communications related to COE with the exporter.

Modification of this Agreement
The Management of the Cup of Excellence program has the right to modify this Agreement and any
policies affecting the website. Any modification is effective immediately upon posting to the website or
distribution via electronic mail. Your continued use of the auction or website following the notice of any
modification shall be deemed your acceptance of the modification(s).

Indemnification, Claims and Disclaimer
Use of this internet auction and ACE website is at the bidder’s own risk. Bidders agree not to hold the
Alliance for Coffee Excellence, the provider of software, internet services or telecommunications
companies for any consequential, incidental and/or liquidated damages if any that may result from or is
claimed to result from, the bidder’s participation in the auction.

The winning coffees have been selected and scored in blind cuppings. The winning farm and the specific
coffee lot information is submitted by each farmer and is not known to the public until the winning coffees
have been disclosed following the international stage cuppings held by the chosen panel. ACE assumes
the farm information is correct and up to date but is not responsible should some information change
before or after the auction. Bidders should assess the value of each coffee based on quality in the cup
and its appropriateness for their company. Farm information is for educational purposes only but can be
used to help sell the winning coffees. All quality claims must be made within 15 days of delivery as per the
Green Coffee Association of NYC ruling but no claim can be made on any coffees shipped more than 45
days after the close of the auction. Should a claim arise, a neutral arbitration panel will be assembled to
assess the claim. Bidding at this auction represents a contract to purchase the coffee. Should a buyer
default on payment legal remedies will be undertaken.

For any quality claims ACE must be contacted directly before any public statements/ posts/ social media
articles or any related matters are published to a general audience. A resolution will be amicably sought
after between ACE, in-country partner, buyer and exporter. Any public statements/ posts/ social media
articles or any other general audience published before contacting ACE will result in a void quality claim
process. ACE reserves the right to have the final resolution in any quality claim.

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