Self Delivery Addendum

Pac-Mid Technology Group, Inc. dba Droppz

This Droppz Self-Delivery Product Addendum (this “Self-Delivery Addendum”) is incorporated into the Agreement. All capitalized terms used and not defined herein shall have the meanings ascribed to them in the Sign-Up Sheet, in this Self-Delivery Addendum, or in the Terms of Service between the parties.

 

1.  PREAMBLE. Droppz owns and operates the Droppz Technology Platform that connects Vendors and Customers for Customers to place Orders for delivery fulfillment by Vendor. Vendor desires to market the availability of Vendor Locations through the Droppz Platform (such use of the Droppz Platform, the “Program”). For clarity, the Program will include each product, service, promotion, or program elected by Vendor in this Self-Delivery Addendum. The Parties agree that Droppz is not a retailer, vendor, reseller, or delivery service; it is an online connection platform.

 

2.  DEFINITIONS.

2.1. “Minimum Order Subtotal” means the minimum amount the Order must be (excluding taxes, fees, and tips) for the Small Order Fee not to be charged.

2.2. “Self-Delivery Fee” means, as set forth in the Rate Card, the delivery fee set by the Vendor that the Customer is charged for a Self-Delivery Order. The Self-Delivery Fee will not be charged to Customers that place Self-Delivery Orders through DropPass.

2.3. “Self-Delivery Order” means an Order placed through the Droppz Platform for delivery by Vendor’s or any Vendor Location’s delivery personnel.

2.4. “Small Order” means any Order that does not meet the Minimum Order Subtotal.

2.5. “Small Order Fee” means the fee Customer is charged for Small Orders.

 

3.  RESPONSIBILITIES.

3.1. Droppz Responsibilities. Droppz will: (a) display Vendor, Vendor Locations, and the menu of Vendor Products at each Vendor Location through the Droppz Platform; (b) accept Orders for Vendor Products through the Droppz Platform from Customers; (c) forward each Order to the relevant Vendor Location; (d) if applicable, for Pickup Orders, notify the Customer to pick up the Order; and (e) pay the Vendor as set forth in Section 4 below, deduct the agreed applicable Commission Rate, marketing fees for each applicable Order, subscription fees (if any), activation fees (if any), and any other fees (and, in each case, as may be adjusted by Droppz as required by any applicable statute, regulation, executive order, or other legal requirement that is either temporary or permanent in nature). Droppz reserves the right to take into account the impact of a Merchant’s conduct on both the customer experience and the Droppz brand when determining the Vendor’s prominence, participation in programs such as DropPass, and/or availability on the Droppz Platform. That conduct includes but is not limited to timeliness and accuracy of orders fulfilled, customer ratings and reviews, customer concerns regarding quality or safety, detrimental price inflation and/or customer complaints about price inflation, and any conduct that may violate our Partner Code of Conduct

3.2. Vendor Responsibilities. Vendor will: (a) provide Droppz with Vendor’s Menu, including the price of each item; (b) monitor Vendor’s menu and store information on the Droppz Platform, promptly make updates via the Vendor Portal to reflect the most up-to-date products, pricing and other information or immediately notify Droppz of any errors or changes in writing (email is sufficient); (ii) accept and confirm Self-Delivery Orders from Droppz in a prompt and timely manner; (c) prepare Vendor Products for each Self-Delivery Order for delivery by Vendor’s delivery personnel or pickup by the Customer, as applicable, at the designated time; (d) process Self-Delivery Orders in the order in which they are received; (e) notify Droppz of its days and hours of operation, including on holidays, and remain open for business on Droppz the same days and hours of operation as Vendor’s in-store business; notify Droppz of any changes to Vendor’s hours of operations on holidays; and notify Droppz if Vendor closes earlier than Vendor’s standard hours of operation or plans to close earlier than Vendor’s standard hours of operation; (f) notify all Vendor Location staff members of the relationship with Droppz, and train staff members on receiving and fulfilling Self-Delivery Orders as soon as practicable upon execution of this Self-Delivery Addendum and on an ongoing basis; (ix) use its standard business practices to prepare Vendor Products that are the subject of each Self-Delivery Order and provide the same materials that Vendor typically would provide in a standard pick-up or delivery order; (g) on an ongoing basis, review and confirm the transactions, fees and charges on orders via the Vendor Portal, and promptly communicate to Droppz any inaccuracies; and (h) if Droppz collects and passes tips from Customers to Vendor, Vendor will distribute such tips in accordance with applicable law, including but not limited to tip pooling laws. Droppz acknowledges that Vendor is solely responsible for the prices of its menu items, which may vary based on factors such as location, time of the year, or competition from other retailers or online stores. Vendor agrees that it will not charge the Self-Delivery Fee for Self-Delivery Orders through DropPass.

3.3. Additional Responsibilities for the Pickup Program. During the Term, once Droppz or Vendor’s point of sale provider enables the ability for Vendor to set different prices for Vendor Products under the PickUp Program than the prices for such Vendor Products for delivery, Vendor shall ensure that pricing of Vendor Products under the PickUp Program is not greater than the pricing of the same Vendor Products for pickup in-store. In the event that Vendor increases the pricing of Vendor Products for pick-up above the in-store prices of the same Vendor Products, Droppz may enforce the terms of this Agreement, including any combination of and not limited to: applying a higher commission rate to affected Self-Delivery Orders, requiring Vendor to reimburse affected Customers for the difference between the Vendor Product listed for pick up and the lower in-store price, charging Vendor an additional fee, and/or adjusting the pricing of Vendor Products available for pick up, in addition to any other right or remedy available at law or in equity.

3.4. Additional Responsibilities for Cannabis Retail Vendor Products. Vendor agrees that its delivery personnel will deliver an Order from Vendor’s licensed premises only to the delivery address provided by the applicable Droppz Customer. Upon delivering an Order, Vendor represents and warrants that its delivery personnel will only deliver the Order if the Droppz Customer (a) is the legal age in the Applicable Jurisdiction; (b) matches the name and picture on the relevant identification with the Droppz Customer; and (c) is not visibly intoxicated. “Applicable Jurisdictions” means any jurisdiction that permits the sale and delivery of Vendor Products under the Cannabis Retailer Addendum during the Term.

 

4.  FEES.  Droppz shall receive a Commission Rate in exchange for Droppz promoting Vendor through the Droppz Platform. The Commission Rate for Self-Delivery Orders placed under the applicable Droppz program is set forth on the Rate Card and/or Exhibit A under the Cannabis Retailer Addendum. When automation is not available from the payment processor, Droppz will pay for Self-Delivery Orders fulfilled by Vendor each week following the week in which the Orders were fulfilled on a consistent day of this week. The exact day in this week is subject to change with no less than 10 days’ notice to Vendor by email or service notification. The amounts remitted will include (a) the pre-tax total of all Self-Delivery Orders for the prior week (Monday-Sunday), plus (b) Collected Taxes (as defined below), plus (c) the Self-Delivery Fee charged for all Orders for the prior week, plus (d) the agreed Small Order Fee charged for all Small Orders for the prior week, plus (e) any tips provided by the Customer, less (f) the aggregate Commission Rate, agreed fees for marketing and promotional deals (if any), error fees associated with Vendor’s incorrect preparation of Orders, and Order Equipment fees (if any) for such week. Vendor agrees Droppz may charge the Customer fees, including but not limited to delivery fees, service fees, surcharge fees, and Small Order Fees where applicable at Droppz sole discretion.

 

5.  TAXES. Droppz shall charge and collect from Customers the applicable value added, goods and services, state and local sales, use, or similar taxes for the Vendor Products sold on the Droppz Platform and applicable customer fees charged by the Vendor to the Customer (“Collected Taxes”). In any jurisdiction where Droppz is required to remit Collected Taxes as a marketplace facilitator, Droppz will be responsible for remitting such taxes to the appropriate tax authorities. Any Collected Taxes that are not required to be remitted under the marketplace facilitator laws will remain the responsibility of the Vendor and Vendor will be responsible for remitting any such portion of Collected Taxes to the appropriate tax authorities. In all other jurisdictions, Droppz will send Collected Taxes to Vendor, and Vendor will be responsible for remitting the total amount of Collected Taxes to the appropriate tax authorities of those jurisdictions. For clarity, Droppz will be responsible for the remittance of any value added, goods and services, sales, use, or similar tax related to Customer fees for services supplied by Droppz, including but not limited to a Service Fee. Vendor will be responsible for the remittance of any goods and services, sales, use, or similar tax related to Customer fees for services supplied by Vendor, including but not limited to a Self-Delivery Fee and Small Order Fee.

  

6.  PAYMENT PROCESSING.  Vendor acknowledges that Droppz uses a payment processor to collect Order amounts from Customers and remit payment to Vendors. In order to receive payment, Vendor may be required to have an account with one of our Payment Processing Providers during the Term. Droppz reserves the right to change its payment processors at any time during the Term and Vendor will provide Droppz with any information required to set up a payment account with any such alternate payment processor.

 

7.  ORDER EQUIPMENT. With respect to the Droppz, if Vendor does not integrate its POS system with the Droppz Platform, Vendor will install the equipment agreed by the parties for Vendor to receive and process Orders, which may include: a tablet, fax machine, or other automated, electronic means of receiving Orders. If the parties agree that any Order Equipment is provided by Droppz, Vendor will pay Droppz an Order Equipment Fee if set forth in the Rate Card, in exchange for the right to use the Order Equipment to access the Droppz Platform in order to receive, process, and accept Marketplace and Pick Up Orders. Any Order Equipment provided by Droppz will remain Droppz sole property and may be used solely in connection with the provision or receipt of services under the Agreement and for purposes related to fulfilling Vendor’s responsibilities under this Marketplace Addendum. Merchant will inspect all hardware, and shall notify Droppz in writing (email sufficient) if any Order Equipment is missing or was damaged as soon as practicable after discovering such damage. Vendor will be responsible for any damage to or loss of any Order Equipment provided by Droppz (excluding ordinary wear and tear), which shall be promptly reimbursed by Vendor (at the replacement cost thereof). Droppz may recover the replacement cost of damaged or lost Order Equipment by deducting such amount from weekly payments, if available. Vendor agrees to pay all agreed subscription fees and deposits charged by Droppz for Order Equipment, and agrees Droppz may deduct such fees and deposits from amounts payable by Droppz to Vendor.

 

8.  REFUNDS AND SUPPORT. In the event a Customer submits a complaint about his or her Order via Droppz support channels, Droppz may, in its sole reasonable discretion, issue a re-order, credit, partial refund, or full refund to such Customer. Vendor shall prepare the same specifications as the original Order (in the case of a re-order) and bear the full cost of that re-order, credit or refund, as applicable, if the complaint was caused by Vendor or Vendor Products, including missing and incorrect Orders. Droppz shall be responsible for any refund, credit or re-order that is caused by the delivery of Orders or Droppers. This paragraph shall not apply to Vendors in the cannabis industry. Cannabis Vendors shall be bound by the refunds language in the Cannabis Retailer Addendum.

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9. TERM AND TERMINATION. This Self-Delivery Addendum may be terminated pursuant to the terms of the Terms of Service.