CTOS Wholesale LLC– Invoice Disclaimer

1. Legal Compliance & Indemnification

Buyers are solely responsible for ensuring that all products purchased from CTOS Wholesale LLC are legal for sale, possession, and resale in their jurisdiction.

By placing an order, you agree to:

Indemnify, defend, and hold harmless CTOS Wholesale LLC, its officers, directors, employees, and agents from any claims, penalties, legal actions, losses, or damages (including attorney fees) arising from:

• Your use, handling, storage, or resale of products
• Any regulatory violation
• Any third-party claim resulting from misuse or misrepresentation of the products

This indemnity applies regardless of fault and survives contract termination.

2. Tax Responsibility & Excise Recovery

CTOS Wholesale LLC collects and remits applicable taxes in the State of Illinois only.

Illinois Excise Tax Applies To:

• Disposable CBD vapes
• CBD e-liquids
• Prefilled pods and cartridges
• Coils, tanks, batteries, and related hardware

TP License Exemption

If a valid Tobacco Products License (TP License) is submitted prior to purchase, excise tax may be waived.

Out-of-State Tax Responsibility

CTOS Wholesale LLC does not collect tax in any other states except for the State of Illinois.
Buyers are solely responsible for:

• Understanding their tax obligations
• Reporting and remitting any applicable use, excise, or sales taxes

Excise Tax Recovery Clause

If tax is under-collected due to system error, exemption status, or missing documentation:

• The buyer agrees to reimburse CTOS Wholesale LLC in full upon demand
• The buyer remains fully liable for any tax authority-assessed penalties, interest, or fees
• CTOS Wholesale LLC reserves the right to pursue recovery through collections or legal action

3. Shipping Claims & Inspection

Parcel and Freight Shipping Inspection – Buyer Claims Process

Immediate Inspection Upon Delivery - Buyer’s Responsibility:

• Inspect shipment immediately upon delivery.
• Check for visible damage to packaging.
• Verify quantity and content.
• Take clear photos or videos of any damage or discrepancies. For Freight shipment damage, sign the BOL and mention "Damage Shipment".

Document the Issue - Collect the following:

If a valid Tobacco Products License (TP License) is submitted prior to purchase, excise tax may be waived.

Out-of-State Tax Responsibility

CTOS Wholesale LLC does not collect tax in any other states except for the State of Illinois.
Buyers are solely responsible for:

• Understanding their tax obligations
• Reporting and remitting any applicable use, excise, or sales taxes

Excise Tax Recovery Clause

If tax is under-collected due to system error, exemption status, or missing documentation:

• The buyer agrees to reimburse CTOS Wholesale LLC in full upon demand
• The buyer remains fully liable for any tax authority-assessed penalties, interest, or fees
• CTOS Wholesale LLC reserves the right to pursue recovery through collections or legal action

Document the Issue - Collect the following:

• Photos: Outer packaging, label, damaged goods, BOL.
• Delivery Receipt/BOL, mention damage upon delivery.

Notify CTOS Wholesale LLC

Timing: Within 2 business days of delivery

a. Include in your message:

• Order Number / Tracking Number
• Description of issue
• Number of Boxes damaged
• Supporting photos/documents

b. Contact Channels:

• Email (preferred for documentation) -support@cbdtostore.com
• Customer Support chat on CTOS Wholesale LLC website
• Phone call for urgent matters - (630-570-0069)