Overview:

In an effort to retain brand value and a healthy distribution channel, Aquor Water Systems has implemented a Retail Unilateral Pricing Policy.

Adhering to the UPP is a way for all retailers to feel confident that the manufacturer has their back, and allows
them to maintain healthy margins while continuing to sell high-quality, innovative products.

The Retail Unilateral Pricing Policy (UPP) sets a Minimum Retail Price (MRP) for all Aquor products. This policy is
designed to prevent price slashing among Aquor retailers, enabling them to remain profitable in this highly
competitive business environment. In order to remain in good standing, Aquor Resellers must advertise and sell all
products at, or above, the MRP.

Aquor will count on each distributor to administer and enforce the UPP. Violations or refusal to participate in the
Aquor UPP could result in loss of:

• Rights to use Aquor intellectual properties
• Ability to purchase Aquor products


Reseller Defined:

A reseller constitutes any merchant that sells to consumers. This includes, but is not limited to: retailers, online
dealers, warehouse distributors, auction sellers, or auction sites. A reseller is also considered to be anyone that
uses Aquor’s trademarks in connection with the advertisement, offering for sale, or sale of Aquor goods, whether
such use is with or without Aquor’s consent.

Furthermore, warehouse distributors (WD) are responsible for monitoring to whom they sell to and ensuring that
the purchasing party is not violating the MRP. Failure to do so may result in penalties to both the reseller and the
WD.

Violations:

A violation is defined as the sale or advertising of an Aquor product(s):
• Below the stated MRP
• Which are bundled together at a price below the aggregated MRP of the individual items
• On a website with ambiguous pricing such as: “See Price in Cart”, “Make Offer”, “bid”, rebate funds,
customer specific funds, or “Instant Message me for pricing”

Promotions:

Aquor Water Systems reserves the right to run National Promotions of their products. Aquor will provide to
resellers the promotional information, with adequate timing, to ensure continued compliance with the pricing
policy. Aquor encourages resellers to utilize the national promotions to their advantage while providing a high
level of customer service to the end user.

Aquor encourages retail promotions and sales of our products. All retail promotions must be approved by Aquor in
writing 30 days prior. If the retail promotions do not meet the requirements of the UPP, they will be in violation,
subject to enforcement and penalties.

Enforcement & Penalties:

Aquor will administer the UPP by sending resellers notifications of violations. Once a violation is discovered, the
reseller will automatically be penalized for their violation in accordance to the penalties stated below. The reseller
will have (2) business days from the date the notification was composed to correct an internet violation, and (3)
business days to correct all other violations. If a violation is not reconciled within the time period allotted, the
reseller will automatically receive the subsequent notification. Aquor will make the final determination as to
whether the violation will be withdrawn.

1. Penalty For First Notification of Violation:
  a. Direct Accounts will:
       i. Lose the privilege to purchase the product found to be in violation for (30) days.
  b. Non Direct Accounts will:
       i. Be added to the warehouse distributor Do Not Sell list and lose the privilege to purchase
the product found to be in violation for (30) days.

2. Penalty For Second Notification of Violation:
  a. Direct Accounts will lose:
      i. The privilege to purchase the product found to be in violation for (90) days.
  b. Non Direct Accounts will lose:
      i. All rights to Aquor intellectual properties and will have two days (2) business days to
remove them off of their website.
      ii. The privilege of being listed on the Aquor dealer locator.

3. Penalty For Third and Final Notification of Violation:
  a. Direct Accounts:
      i. Immediate action must be taken to remove all Aquor products from the website.
The following will be revoked immediately and remain in affect indefinitely...
      ii. All Aquor intellectual property rights
      iii. Privilege to purchase any and all Aquor products.
      iv. 100% of marketing co-op funds, if applicable.
      v. Privilege of being listed on the Aquor dealer locator.
  b. Non Direct Accounts:
      i. Will immediately be placed on the Aquor Do Not Sell List. This includes all Aquor
products.
      ii. All Aquor intellectual property rights are immediately revoked.


This policy may be modified or amended at any time by Aquor. If any changes are to occur, Aquor will distribute a
(30) day written notice of any changes to its resellers. Updated information may also be found at
www.aquorwatersystems.com/upp

IF YOU HAVE BEEN MADE AWARE OF THIS UPP AND CONTINUE TO SELL AQUOR PRODUCTS, YOU CONSENT TO
AND AGREE TO ALL OF THE TERMS AND CONDITION OF THIS UPP.

We greatly appreciate your business and continued support of the Aquor Water Systems brand. Should you have
any questions regarding this policy, please feel free to contact us.

Contact info:

For instructions on how to report a violation, please contact:
Email: upp@aquorwatersystems.com
Website: https://www.aquorwatersystems.com

For all other inquires contact the Aquor Water Systems UPP Program Administrator (No person other than the
program administrator is authorized to answer questions regarding this policy):

Address:
UPP Program Administrator
Aquor Water Systems, Inc.
240 Airport Road
Port Townsend, WA 98368

Email: upp@aquorwatersystems.com
Website: www.aquorwatersystems.com/upp