DISTRIBUTION LICENSE AGREEMENT

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Shared by: johnrr1
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Q GRADING PROTOCOLS January 2008 Exhibit A 1. LABORATORY: The In-Country Partner, hereafter referred to as the ICP, agrees to maintain the equipment and an adequate environment for Q Grading. The ICP will designate a coffee laboratory manager to oversee Q Grading activities and ensure the following protocols are followed.  2. ICP to provide CQI with contact information for the coffee laboratory manager. RECEIVING SAMPLES: A farmer, exporter, or other producer representative may submit coffee samples to the ICP for Q Grading. One sample per discrete lot may be submitted. There is no minimum requirement of lot size. The maximum lot size is defined by a container (20 ft.) up to 320 – 60 kg bags. The sample size must be 1 kg of green coffee and prepared to specialty standards, as defined by the Specialty Coffee Association of America (SCAA). Other coffees may be submitted, however not eligible for a Q Grade Certificate (they will receive a technical report). Samples must be packaged in a sturdy plastic bag free of odors. The owner must prepare the sample as a preshipment sample, parchment and defects removed. Specialty Grade Green Coffee (as defined by the SCAA): Specialty green coffee beans have no more than 5 full defects in 350 grams of coffee. No primary defects are allowed. A maximum of 5% above or below screen size indicated is tolerated. Specialty coffee must possess at least one distinctive attribute in the body, flavor, aroma, or acidity. Must be free of faults and taints. No quakers are permitted. Moisture content is between 10-12%. Along with the sample, the owner is required to remit payment for the Q Grading Services and the completed Q REGISTRATION FORM prior to grading.  ICP to provide CQI copy of the registration form. 3. CODIFICATION: The designated lab should have enough physical space to have a separate area for receiving samples. Samples must be received and codified by an impartial person (designated by the ICP) who is not directly involved in grading of the sample. The designated coffee laboratory manager, responsible for overseeing the program, is permitted to accept and codify samples. Upon delivery of a sample, the exporter will be issued a formal receipt from the lab.  The coffee laboratory manager should provide CQI with an outline of the receiving and codification process. 4. SCHEDULING A Q GRADING: Upon receipt of sample, payment and completed registration form, the ICP agrees to schedule a grading within five (5) business days. The coffee laboratory will schedule three (3) coffee graders who are certified by CQI (Q Graders, or Licensed Q Graders), none of whom shall have ownership interest in the coffees being graded. SAMPLE PREPARATION AND WEIGHING: The samples should be evaluated as they are submitted. Once the coffee is received and codified the sample is weighed. Samples submitted will be divided into three parts: I. Green grading sample: 350 grams are set aside for the physical grading using the SCAA Green Grading Format; 5. 1 II. Roasting sample: 450 grams are set aside for roasting and cupping using the SCAA Roasting and Cupping Protocols; and III. Reference sample: 250 grams are set aside to be used as reference sample in the case of a quality issue or arbitration. The reference sample will be filed and kept by the in-country partner lab for at least six months. This sample will be used as reference in case of arbitration. 6. Q GRADING PROTOCOLS: The ICP/designated lab will follow the SCAA protocol for roasting, cupping. Physical Grading The physical grading of the 350 gram green sample will be done by two (2) Q Graders. Only one Grader will grade the sample using the SCAA Arabica Green & Roasted Grading Sheet. Once the sample is graded, the results are checked and verified by the second Licensed Q Grader. NOTE: Only one grading result per sample is allowed. Each grading sheet must be signed by the primary grader and the verifying grader and identified with the codification number.  ICP to provide CQI a copy of the green grading form. Roasting and Cupping The designated in-country partner will be responsible to roast all samples as per the SCAA Roasting Protocol. (Note: Multiple samples for a scheduled grading should be roasted on the same day and allowed equal time for de-gassing.) All three (3) cuppers, Licensed Q Graders, will cup and evaluate the coffees using the SCAA Cupping Form. The final score will be determined as an average of the three graders.  7. ICP to provide CQI a copy of the three (3) cupping forms. RESULTS REPORTING: The coffee laboratory manager will compile and average the scores from the three (3) cupping forms to determine the final score. If the coffee successfully passed the green grading and scored a minimum of 80 points, the ICP can issue a Q Certificate to the coffee owner. If the graded coffee is not eligible for a Q Certificate, a technical report should be issue to the coffee owner. The ICP is responsible for releasing results to the owner of the coffee. The designated coffee laboratory manager is responsible for collecting and reporting all grading and cupping results to CQI, including the Q Grading Registration Form, the SCAA Green Grading Form, the three (3) SCAA Cupping Forms, and the Q Certificate, if issued, or final technical report. The results should be sent to Tracy Ging at the Coffee Quality Institute by fax 562-624-4191 or emailed to tging@coffeeinstitute.com. 8. MAINTAINING RECORDS: The in-country partner will keep copies of all documents as outlined in the Letter of Agreement between the Coffee Quality Institute and the ICP. PAYMENT: The ICP shall remit payment to CQI when transfer fees are no more than 5% of the total th amount due. For example, for a wire transfer fee of $25, the ICP would remit payment after the 17 graded lot, or when the total amount due exceeds US$500. Wire transfer information will be provided separately. 9. 10. CONTESTED RESULTS: If an owner disputes a posted score, they may elect to send a sample (500g) from the graded lot to the CQI office for re-evaluation. There will be a $60 fee for reevaluation. One Licensed Q Grader will review the original grading forms and re-evaluate the coffee. If the Licensed Q Grader determines the coffee meets the 80 threshold, then the coffee will be regraded at no additional charge. 2

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