GENERAL CONDITIONS OF PARTICIPATION IN THE LIVE AUCTION
FOURTH QUALITY COMPETITION "COLOMBIA LAND OF DIVERSITY" 2019

LIVE AUCTION - APRIL 13, 2019. BOSTON CONVENTION CENTER, BOSTON MA, USA.

INITIAL RECOMMENDATIONS

This document applies exclusively to the realization of the live auction that will take place on APRIL 13, 2019, Boston Convention Center, Boston, MA, USA. This document is available on the website of the Colombian Coffee Growers Federation, (FNC), www.federaciondecafeteros.org.

This document contains the General Conditions of Participation in the Live Auction, which are mandatory terms for those who are interested in attending and register as Participants in the Auction.

Any person in his capacity as Auction Participant and / or Winner thereof, gives his informed consent and prior acceptance, and declares to comply with these Terms and Conditions.

The development of the Live Auction will be recorded. These recordings will be available when required by the competent authorities and will be kept for the time indicated by law.

1.
Read carefully the contents of this document and the annex:
a. Annex: Purchase Terms - Bidding Agreement
2.
Make sure you meet the requirements indicated herein.
3.
Follow the instructions given in this document
4.
Keep in mind the date and time foreseen for the realization of the auction.
5.
It will be the responsibility of the Proponent - Participant and / or Bidder (as defined below) to know each and every one of the implications of an offer in the auction event, and to perform all the evaluations that are necessary, based on a careful study of the respective implications.
6.
The Proponent - Participant and / or Bidders when submitting the Letter of Intention, authorize the Colombian Coffee Growers Federation to verify all the information provided therein.
7.
When there is a lack of veracity and inaccuracy in the information provided by the Participant - Proponent in the Letter of Intention, corroborated by the Colombian Coffee Growers Federation, the FNC may reject the participation in the auction and / or give notice to the competent authorities.
8.
Provide all the information required in the Letter of Intention; the Colombian Coffee Growers Federation may reject the participation in the auction in case of not completing all requested information.
9.
With the submission of the Letter of Intention it will be interpreted that the Proponent -Participant: (i) completely read and understood the Conditions of Participation for the Auction, and other attached documents; (ii) received the necessary clarifications to the concerns or doubts previously consulted when they were required; (iii) has fully accepted the Conditions of Participation for the Auction, which are complete and adequate to identify the scope and operation of the same.

BACKGROUND OF THE LIVE AUCTION PROCES
FOURTH QUALITY COMPETITION "COLOMBIA LAND OF DIVERSITY 2019"

The Colombian Coffee Growers Federation, in search of recognizing and highlighting the quality of Colombian coffee, has developed three versions of the National Quality Contest –"Colombia Land of Diversity". This contest, of national level, gathered more than 684 participating lots for the fourth version. The purpose of this initiative is to promote and highlight the quality of coffee in the country, highlighting the efforts of Colombian coffee growers who produce excellent quality coffee.

After evaluating all the lots in three rounds of tasting, the best 47 lots of the Fourth "Colombia Land of Diversity" Quality Contest were selected. For the last round of selection of the lots, a panel of international coffee tasters were invited, who were responsible for selecting the best 23 lots that will participate in live auction.

GENERALITIES OF THE LIVE AUCTION PROCESS

The Colombian Coffee Growers Federation has organized a live auction to auction the best coffee lots of the contest. The auction will be chaired by the President of the Live Auction. It is an upward Auction, which refers to a process whereby from an opening price, positions are presented ascendingly, with the operation awarded to the one offering the highest price.

Only the natural or legal persons that submit their letter of intention may have the status of Proponent - Participant and / or Bidder at the auction and are the only ones that may submit bids on their own behalf or on behalf of their clients.

The Colombian Coffee Growers Federation, to guarantee the principle of publicity will inform the celebration of the auction through advertisements disseminated from its website in order to ensure the timely and sufficient disclosure of information related to the auction for both Proponent - Participant and / or Bidders wishing to participate, as for the other participants in the coffee market.

The development of the auction will be recorded by tapes, electronic systems or any other similar means. Said recordings will be available when required at the request of any competent authority and will be kept for the time indicated by law. These recordings are property of the Colombian Coffee Growers Federation, any use of them must be authorized by it, and by signing the letter of intention, the signee authorizes such recordings and their use by the Colombian Coffee Growers, always complying with applicable law.

Through acceptance of these Terms and Conditions, the Participant and / or Bidder agrees to pay and receive directly that batch(s) of coffee that has been sold and accepts the terms of purchase (Bidders Agreement).

Live auction president

The live auction will be chaired by a President who is an independent person who is hired by the Colombian Coffee Growers Federation to conduct THE FOURTH LIVE AUCTION QUALITY COMPETITION “Colombia Land of Diversity”, who will monitor the operation and development of the activity.

The President of the Live Auction will have access to all the information of the coffee lots being auctioned to keep control over the information being mentioned. In order to preserve the transparency, security, impartiality and efficiency of the event, it may refrain from allowing the entry of bids, suspend or cancel positions and operations, and order early closings of the sessions of the live auction, when in his opinion there are situations or events that may affect said objectives subject to the provisions of this document of conditions of the Live Auction.

When any type of technical or operational liabilities occur, and / or circumstances of force majeure or facts that produce or may cause serious alterations in the development of the live auction, the auction President is empowered to suspend or enforce closure of the auction sessions and to forcibly cancel, in whole or in part, the positions and operations, always ensuring impartiality and transparency. This suspension will be maintained until the moment in which the deficiency that caused the failure is corrected, without prejudice to the fulfillment of the operations that were held prior to the suspension.

When the circumstances noted above are presented, the Auction President may cancel the current positions, except in the cases expressly provided for in these Regulations. The foregoing shall not imply any type of responsibility for the Colombian Coffee Growers Federation, nor for those who adopt said decision.

Claims for business adjudication must be submitted during the course of the live auction, the President of the auction will resolve them immediately according to the means at his disposal.

Procedure for Live Auction

For each lot to be auctioned a space is opened, where previously registered buyers have had the opportunity to bid and accept a value established by the Colombian Coffee Growers Federation - entity in charge of the Auction, as well as each increment in order to acquire the product. The coffee lots will be awarded to the highest Bidder in a determined time by the President of the event, time that will depend on the dynamics of the auction and the absence of more buyers bidding for the lot.

All Bidders who have submitted their letter of intention before 3:00 p.m. on April 13, 2019, the date on which the Auction will take place, will participate in the live auction. The letter will be submitted in physical format at the reception of the designated location provided by the Colombian Coffee Growers Federation.

Only the Proponents and representatives (with the appropriate authorization of whom they will represent) that are physically present in the live auction, are entitled to present their bids, and may present their positions at any time during the term that lasts each round.

The opening price for the Live Auction for the small lots is US$3.50 per pound and for Estate coffees is US$2.00 per pound for the lots to be auctioned.

The positions must be made during the duration of each round, for which each Bidder will be given an identification palette with a previously assigned number, which must be raised according to the price you wish to accept. The minimum incremental bid is US$0.50 per pound for small lots and US$0.10 per pound for big lots of the opening price already indicated for the lots to be auctioned.

The identification palette of the Bidder will be for personal and non-transferable use. The proper use of this identification will be the responsibility of the Bidder, who in any situation may not lend it to anyone to allow entry to the LIVE AUCTION other than the one expressly authorized and accredited before the Colombian Coffee Growers Federation - Commercial Department. Loss or improper handling of the pallet will fall under Bidders’ responsibility in case this occurs.

In any case, no positions may be given to those individuals who are not properly identified with the carrying of said document during the live auction.

After all the rounds have been executed, the auction will be considered closed.

The transactions carried out in the live auction will be recorded in a document called: "Confirmation of Purchase", signed by the proponents who participated in it, the delegates of the Colombian Coffee Growers Federation and the President of the Auction. A copy will be delivered to each of the proponents who participated in the round, the original document will be retained by the Colombian Coffee Growers Federation, Commercial Department.

Any Proponent - Participant and / or Bidder who performs a bid during the live auction will be obliged to carry out the purchase and export of coffee with the Colombian Coffee Growers Federation in accordance with the provisions of this LIVE AUCTION CONDITIONS DOCUMENT, and other rules corresponding to the business that the entity applies.

Linkage and / or collusion between the participants

During the development of the Auction, acts of collusion are prohibited, agreements and / or cooperation between two (2) or more Participants intended for:

Hindering the offers of other Participants and / or not allow them to compete with each other, in order to obtain an undue advantage to win the Lot during the Auction, such as:
Agreements between related Participants whose purpose is to alternate the offers during the same auction.
Offers made by Participants who share a common interest.

Business ethics policies

All the Proponent - Participant and / or Bidder expressly declares that he is not immersed in any conflict of interest to contract with FNC, and in general that his position under this auction does not ignore any of the principles and values that govern the actions and behavior guidelines of the FNC.

In development of the Business Ethics and Money Laundering Policies, the Colombian Coffee Growers Federation, as administrator of the National Coffee Fund (FoNC), may consult, request, supply, report, process and disclose information corresponding to the restrictive lists of Washing of Assets and Financing of Terrorism, including but not limited to the OFAC list, published by the Treasury Department of the United States of America and the List of Persons and Entities associated with terrorist organizations published by the United Nations Security Council. In the event that the Proponent - Participant and / or Bidder is included in any such list, the FNC may terminate immediately any negotiation derived from the auction process - purchase confirmation.

Purchasing Terms

The Proponent - Participant and / or Bidder will accept the terms of purchase and export of coffee that are detailed in the attached document: Purchase Terms - Bidding Agreement that was delivered to them when they presented their letter of intention, which is signed and accepted by Proponent - Participant and / or Bidder.

These Terms and Conditions apply to the entire live auction process, the user accepts the validity of these Terms of Use.

Information and Responsibility

The Information is intended solely for general information purposes and does not constitute any further advise. Colombian Coffee Growers Federation will not be liable for any damages resulting from the use (or inability to use) of this information, including any incorrect or incomplete information.

Intellectual Property Rights

This document and all its contents, functions and features (including, among others, any information, text, sample, image, video and audio, as well as the design, selection and arrangement of these) are the property of the Colombian Coffee Growers Federation and are protected by copyright, trademark, patent, industrial secret and other laws regarding intellectual property or property rights.

You can make (partial) copies of the document for your personal use. However, you will not be allowed to use any part of the content of our document for other purposes without first obtaining our written authorization.

Indemnity

The Proponent - Participant and / or Bidder of this auction shall hold harmless and shall defend at its own cost to the FNC from any lawsuit, complaint or claim and / or liability of any nature, including costs and expenses arising from acts and omissions of such Proponent - Participant and / or Bidder. If this is not possible and claims or lawsuits are filed against FNC, within five (5) business days following the date on which they are notified or filed, FNC may communicate the situation in writing to the Proponent - Participant and / or Bidder or call him for guarantee. In any of these situations, the Proponent - Participant and / or Bidder is obliged to attend the defense and interests of FNC and will assume the cost of such fees, the process and the eventual convictions, if any.

Likewise, the Proponent - Participant and / or Bidder shall be responsible and indemnify FNC for any damage or loss arising from any act or omission attributable to him in the course of this auction process and once the purchase of the lot is adjudicated additionally, the Proponent - Participant and / or Bidder will be responsible for civil liability to third parties (including employees, contractors or dependents of FNC) for damages, losses or injuries and will defend and indemnify FNC for any claimer proceeding, established by anyone for these concepts.

Miscellaneous

Each of the paragraphs of these Terms and Conditions are valid independently. If a judge or competent authority decides that any of them is illegal or unenforceable, the remaining paragraphs will remain in full force.

These Terms and Conditions are governed by Colombian law. Any dispute or claim that may arise will be resolved before the competent judges of Bogotá, Colombia.

Use of the logo of the Fourth National Coffee Quality Contest "Colombia Land of Diversity ", and of the Colombian Coffee Growers Federation.

The Colombian Coffee Growers Federation reserves all rights of the logo and / or the name of the contest FOURTH NATIONAL COMPETITION OF QUALITY OF COFFEE " COLOMBIA LAND OF DIVERSITY".

Proponent - Participant and / or Bidders may, prior authorization from the Colombian Coffee Growers Federation, use, modify, reproduce, alter, exploit economically, said logo and / or the name of the contest. Therefore, its unauthorized use would result in criminal and / or civil consequences.

Rights of image and publication of photographs - assignment of author's economic rights.

The participants of the live auction may be filmed by the Colombian Coffee Growers Federation, by any means of recording or filming. The participants consent to such recordings, and that the product thereof may be distributed, exploited, reproduced, licensed, transferred, used or destroyed by the Colombian Coffee Growers Federation. The patrimonial rights of these recordings and the image exploitation rights of the filmed persons are assigned to the Colombian Coffee Growers Federation without limitation.

ANNEX

SPECIAL CONDITIONS THAT FORM THE LETTER OF INTENTION TO PARTICIPATE IN THE LIVE AUCTION HELD AT THE SCA EXPO, BOSTON 2019

AUTHORIZATION OF PERSONAL DATA. The undersigned grants the Federation previous, explicit and informed consent to process personal data (collect, store, organize, circulate, use, rectify, delete, exchange, and update, partially or totally) in accordance with the purposes established in its Privacy Policies (available at www.federaciondecafeteros. org) and in compliance with applicable law taking into account, amongst others, the origin of the money and the place of the Auction. The information (which includes general data, identification data, location data and socioeconomic content data), is collected by the Federation in order to comply with legal duties and allow the proper development of its purpose as a non for profit entity, as well as the mandates in their capacity as manager of the National Coffee Fund; particularly to facilitate, promote, allow or maintain civil and commercial relations. The purposes for the personal data processing include: (i) the promotion of goods and services; (ii) as well as the management and sending of communications on the activities developed by the Federation and its related entities. The undersigned acknowledges and accepts that part of the information delivered may be sensitive, and expressly authorizes its processing. In addition, it authorizes the delivery of information to private and public entities, as well as its treatment and deliver to any country, only as long as it is necessary to fulfill these purposes. As the owner of your personal data, you may exercise the rights established in the laws in force regarding the protection of personal data, including: knowing them, updating them, and rectifying them, (ii) requesting proof of the authorization granted, (iii) knowing how they have been used, ( iv), revoke the authorization and / or request the deletion of the data and (v) access the information at any time, by means of a formal written request sent to Calle 73 # 8 - 13, Bogotá DC, Colombia or email datos.personales@cafedecolombia.com. The undersigned declares that the information provided is true, complete and up-to-date, and undertakes to inform the Federation in case it changes. Additionally, (s)he certifies that (s)he understands the optional nature of the answers, as well as the applicable regulations; particularly regarding sensitive data (including biometrics), juvenile data and international data transfer. The Proponent - Participant and / or Bidder in the live auction, who signs the letter of intention, declares that the information of third parties delivered during this auction process is exclusively professional and that he has been authorized to deliver it.

4th Coffee Quality Contest Colombia Land of Diversity

Live Auction – April 13th, 3:00pm at the SCA Expo Room 210C, Boston Massachusetts, US.

Your participation in the Auction hereby indicates your review, and agreement to be bound by the following Rules, Terms, and Conditions of the 4th Coffee Quality Contest “Colombia Land of Diversity”.

Introduction

The 4th Coffee Quality Contest, “Colombia Land of Diversity” is the fourth national coffee quality competition organized by the Colombian Coffee Growers Federation. This contest seeks to highlight the diversity of cup profiles that Colombia has, positioning the country as one of the best specialty coffee producers. Bidding for the winning coffee lots may only be done in the live auction, held in Boston on April 13th, 3:00pm at the Boston Convention and Exhibition Center Room 210C.

The Bidding Process

Place: Boston Convention & Exhibition Center, Room 210c, Boston, MA, USA
Date: 13th April 2019
Time: 3:00pm – 6:00pm

Only approved Bidders may bid during the live auction. All Bidders and/or representative (with the appropriate written authorization of whom they will represent) must be physically present at the auction in order to bid. The opening price for small lots is US$3.50 per pound and for estate coffees is US$2.00 per pound. Opening of the bidding time for each specific lot will be announced by the auctioneer. Bids can only be done during the specific lot being showcased during the live auction and prior to the close of each lot. Close of each specific lot will also be announced by the auctioneer. The highest Bidder at the close of each lot will be declared the final buyer of that particular lot of coffee.

Only an approved Bidder and/or their representative will be given access to the auction room. Every Bidder will have a paddle with a clear number that identifies them. By raising the pallet, the Bidder accepts the incremental price given by the auctioneer.

The minimum incremental bid is US$0.50 per pound for small lots and US$0.10 per pound for big lots.

Once the bid is acknowledged by the auctioneer, it may not be revoked or withdrawn. Any subsequent higher bid, whether by the same Bidder or another Bidder shall effectively extinguish all prior lower bids.

Each lot will be sold in total. The highest Bidder irrevocably commits to purchase the entire lot and will be the financially responsible for the payment of the lot and logistics (such as shipping, customs, imports, etc. – the coffee is physically located in Colombia at the Almacafé Bogota Warehouse). All sales are final. This agreement and all of its terms override any subsequent contracts pertaining to the allocated lot.

Any subsequent terms negotiated outside this agreement’s terms must be mutually agreed upon by both parties in writing.

Declarations and warranties:

By signing this Bidders Agreement the Buyer declares that (i) the money to be used to pay this agreement proceeds from legal sources, (ii) the Buyer does not support terrorism, money laundering, or any illicit activity, (iii) the Buyer is not included in any the restrictive lists of Laundering and/or Financing of Terrorism, including but not limited to the OFAC list, published by the Treasury Department of the United States of America and the List of Persons and Entities associated with terrorist organizations published by the United Nations Security Council.

Additionally, the Buyer declares that (s)he has no conflict of interest in buying coffee nor any impediment or inability to sign this document with FNC,

Purchasing Terms

Parties
Seller/Exporter: Colombian Coffee Growers Federation (FNC) as manager of the National Coffee Fund (FoNC).

Buyer: Party who successfully makes the highest bid for each lot. The winning bid (highest bid) becomes the buyer of the lot being auctioned.

Prices: All bids shall be expressed in U.S. dollars per pound ($USD/lb), outright price. Final outright price will be determined by the highest bid for each lot.

Delivery/Shipment Terms:
  – Free on Board (FOB) – Colombian main port
  – Stuffing conditions: LCL/FCL
  – Shipment port: Seller’s option
  – Other applicable services and fees to be agreed on a case by case basis

Payment terms
  – New FNC clients: Advance payment
  – Current FNC clients: As per current terms agreed with each individual client at the date of the auction.

Quality:
  – Microlots: EXTRA SC16 zero defects 5%
  – Estate Coffee: EP SC15 8*35 2.5%

Approval:
  – All lots are pre-approved at the cupping session(s) prior to the auction.

Packaging:
  – Microlots: Vacuum packaging: 24kg boxes with two 12 kg vacuum packages.
  – Estate Coffee: Grain Pro Fique bags 70kg each.

Shipping

Shipping Month: April/May 2019 – After all logistics, shipping details and payment terms have been agreed and met by the FNC and the buyer.

Partial shipments will not be accepted.

Shipping instructions must be provided by the buyer no later than 10 business days after the live auction to the FNC Craft Coffees team.

If the buyer wants to consolidate the lot with a different exporter than the seller (FNC), the lot must be paid in full before it is released. Any changes in shipping procedures requested by the buyer may result in additional shipping, administrative and documentation charges to their account.

Document provided:
  – Bill of Landing (3x Original)
  – ICO Certificate of origin
  – Commercial Invoice
  – Packing list
  – Weight certificate
  – Quality certificate
  – Farm information and traceability
  – Phytosanitary certificate (For countries that require it)

Market Bidders located in Colombia
If the winning Bidder is based in Colombia, the entire winning lot will be delivered as per the following conditions:

New FNC clients: Advance payment
Current FNC clients: As per current terms at the date of the auction
Invoice should be expressed in USD
Payment to be made in COP as per the current exchange rate available at the payment day. It is the buyer’s responsibility to announce the payment day to the seller.
Delivery at Almacafé warehouse Bogota (Soacha – Km 14 Via Bogota – Girardot).

I accept to the following terms and conditions.
Status
AGENDA FNC