Wholesale Acknowledgement

RETAILER WHOLESALE ACKNOWLEDGEMENT
LUSHDROP BEV. CO. • Hydrate As Nature Intended
USDA Organic • Fair Trade • Single-Origin • Knoxville, TN

SUPPLIER
LUSHDROP Bev. Co.
605 Sevier Ave, Knoxville, Tennessee 37920
contact@lushdropbevco.com

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1. PARTIES & SCOPE

This Retailer Wholesale Acknowledgement ("Agreement") is between LUSHDROP 
Bev. Co. ("Supplier"), Knoxville, Tennessee, and the applying retailer 
("Retailer"). It governs all wholesale purchases and resale of LUSHDROP's 
organic cold-stored coconut water products ("Products") and supersedes any 
prior understandings between the parties. By submitting a wholesale account 
application and checking the agreement box, Retailer acknowledges having read 
and agreed to all terms herein.

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2. PRODUCTS & CERTIFICATIONS

All Products carry the certifications below, which Retailer agrees to represent 
accurately across all marketing and customer-facing communications. Retailer must 
not claim certifications beyond those documented by Supplier. Supplier will notify 
Retailer within five (5) business days of any change in certification status.

- USDA Organic — certified under the National Organic Program (NOP)
- Fair Trade Certified — sourced in compliance with Fair Trade USA standards
- Single-Origin — coconuts traceable to a single named growing region 
  (Nam Hom variety)

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3. ORDERS & PAYMENT

All orders are pre-paid. No Products will be shipped until full payment is 
received and cleared. Orders are submitted via email or Supplier's designated 
portal and are subject to Supplier acceptance within two (2) business days. 
Accepted payment methods: ACH/bank transfer; credit card (subject to a 
processing fee at the prevailing rate at time of transaction, as determined 
by Supplier's payment processor). Invoices are due on receipt; unconfirmed 
orders are cancelled if unpaid within five (5) business days.

Wholesale pricing is determined at the time of each order based on Supplier's 
then-current rates. Supplier may adjust pricing, fees, and payment processing 
rates upon thirty (30) days' written notice to Retailer; such adjustments do 
not apply to orders confirmed prior to the effective date of the change. 
Supplier reserves the right to update applicable processing rates at any time 
to reflect changes imposed by Supplier's payment processor, with notice 
provided as soon as reasonably practicable.

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4. COLD STORAGE & HANDLING

Cold-chain integrity is essential to product quality, safety, and certification 
compliance. Retailer agrees to comply strictly with all requirements below from 
the moment Products are received.

Storage Requirements:
- Receiving / Unloading: 35°F – 39°F (1.7°C – 3.9°C) — Refrigerated dock required
- Back-of-House Storage: 35°F – 39°F (1.7°C – 3.9°C) — No ambient storage permitted
- Retail Display (open cooler): 35°F – 39°F (1.7°C – 3.9°C) — Must not exceed 
  39°F at any time
- Maximum Allowable Temperature: 39°F (3.9°C) — Exceedance voids damage claims

Handling Obligations:
- Inspect Products at delivery; note any damage or temperature exceedance on 
  the delivery receipt immediately.
- Products must not be left unrefrigerated for more than thirty (30) minutes 
  during stocking or display changeovers.
- FIFO (First In, First Out) rotation must be practiced at all times.
- Products must not be frozen. Freezing permanently alters quality and voids 
  all damage claims.
- Retailer must maintain refrigeration equipment in good working order with 
  regular temperature monitoring.

Temperature Breach:
If a breach is discovered after delivery, Retailer must notify Supplier within 
twenty-four (24) hours with supporting documentation (temperature logs, photos). 
Supplier is not liable for quality degradation resulting from Retailer's failure 
to maintain required temperatures.

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5. LABELING & MARKETING

Supplier grants Retailer a limited, non-exclusive, non-transferable license to 
display LUSHDROP brand assets solely to promote the sale of Products at 
Retailer's licensed location(s). All use must:

- Accurately represent current certifications — USDA Organic, Fair Trade 
  Certified, Single-Origin — in all shelf, POS, and digital listings
- Not alter, crop, or modify brand assets without prior written consent 
  from Supplier
- Not make health claims or comparative advertising claims not pre-approved 
  in writing by Supplier
- Not alter product packaging, labeling, or best-by dates
- Comply with FTC endorsement guidelines for any social or digital promotion; 
  tag @LUSHDROPBevCo when using Supplier-provided imagery

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6. RETURNS & DAMAGE POLICY

All sales are final. Once custody of Product passes from LUSHDROP to Retailer 
possession, no returns are accepted. Damaged goods must be reported at time of 
receipt for replacement product only, subject to the conditions below.

To qualify, damage must: (a) be documented on the delivery receipt at the time 
of receipt; (b) result from a manufacturing defect, incorrect shipment, or 
documented cold-chain breach by Supplier during transit — not from Retailer's 
storage, handling, or slow turnover. Retailer must notify Supplier in writing 
with photographs and applicable temperature logs at the time of delivery. 
Supplier will arrange replacement product within fifteen (15) business days of 
receiving documentation. Products stored or handled outside Section 4 
requirements, frozen, or not reported at time of receipt are not eligible.

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7. MINIMUM ADVERTISED PRICE (MAP) POLICY

Retailer agrees not to advertise any LUSHDROP product below $6.00 per unit 
(MAP Price) in any channel — including in-store signage, online listings 
(Amazon, Instacart, etc.), email promotions, social media, and print circulars. 
Bundle promotions that obscure per-unit pricing below $6.00 are also covered. 
This policy governs advertised prices only; Retailer retains discretion over 
the actual in-store transaction price.

Supplier may update the MAP Price upon thirty (30) days' written notice. 
Enforcement:
(1) First violation — written notice requiring correction within 48 hours
(2) Second violation — order fulfillment suspended until cured
(3) Third violation — Agreement terminated immediately with no return or 
    credit obligation on remaining inventory

This policy is unilateral and does not constitute an agreement regarding 
resale prices.

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8. TERM & TERMINATION

This Agreement is effective upon submission of a wholesale account application 
and remains in effect for twelve (12) months, renewing automatically on an 
annual basis unless terminated by either party on thirty (30) days' written 
notice. At each renewal, Supplier may update pricing, fees, and processing 
rates upon thirty (30) days' written notice prior to the renewal date. Supplier 
may terminate immediately for cause, including non-payment, material breach of 
cold storage or labeling requirements, or misrepresentation of certifications. 
Upon termination, Retailer must immediately discontinue use of all LUSHDROP 
brand assets and remove Products from display.

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9. INDEMNIFICATION & LIABILITY

Retailer agrees to indemnify, defend, and hold harmless LUSHDROP Bev. Co., 
its officers, employees, and agents from any claim, loss, or liability arising 
from: (a) Retailer's failure to comply with cold storage or handling 
requirements; (b) Retailer's misrepresentation of product certifications or 
attributes; or (c) any acts or omissions of Retailer's employees or agents. 
Supplier's total liability under this Agreement shall not exceed the amount 
paid by Retailer for the specific order giving rise to the claim.

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10. GOVERNING LAW & DISPUTES

This Agreement is governed by the laws of the State of Tennessee. Any dispute 
shall first be submitted to good-faith mediation. If unresolved, disputes shall 
be settled by binding arbitration in Knox County, Tennessee, under American 
Arbitration Association rules.

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11. GENERAL PROVISIONS

- Entire Agreement: This document constitutes the entire agreement between 
  the parties and supersedes all prior understandings.
- Amendments: Any modification must be in writing and signed by both parties.
- Waiver: Failure to enforce any provision does not constitute waiver of 
  that provision.
- Severability: If any provision is found invalid, the remaining provisions 
  stay in full force.
- Notices: All notices must be in writing via email with read-receipt or 
  certified mail to contact@lushdropbevco.com.

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For questions regarding this Agreement, contact us at:
contact@lushdropbevco.com

LUSHDROP BEV. CO. • Hydrate As Nature Intended • Knoxville, Tennessee • 2026