$100 Charge for Non-Distributor Drop Shipment Requests

June 11, 2015

Valued Customer,

Effective July 30, 2015, the Hedwin Division of Zacros America will implement a $100 charge for all drop-shipments on orders placed after this date. All drop-shipments must be for at least minimum order quantity (MOQ) associated with each product to be drop-shipped.

Over the past two years the number of customer requests for drop shipments has significantly increased. As such, the resources devoted to fulfilling these requests by the Hedwin Division logistics team have increased as well.

Should you request the Hedwin Division to drop ship product(s) to your customer, a $100 fee will be charged as a separate line item on your invoice. The fee will be incurred once for each sales order with a unique drop-ship address, regardless of the number of items ordered.

If the Hedwin Division is unable to drop-ship your full order and you request drop shipment of the remaining partial order, we will still bill you $100. However, the Hedwin Division will absorb the drop shipment cost for the balance of the order when it is shipped to your customer.

We understand that drop shipments are a required part of doing business with our customers. However, there is a cost associated with executing drop shipments whether these costs are generated from your or our facility.

On behalf of every employee of the Hedwin Division of Zacros America…Thank you for your business. We pledge to earn it …… every day!

Richard F. Broo