Service Level Agreement

Order Accuracy

Tondo Fulfillment shall maintain 99% accuracy in fulfilling the orders correctly with the items listed on Tondo Fulfillment dashboard. If replacement shipments are required due to an error on the part of Tondo Fulfillment, Tondo Fulfillment will pay the lesser of the return postage or replacement value of incorrect items shipped, waive all fees on the replacement order, and re-ship the order.

Fragile Wrapping & Breakage

Tondo Fulfillment shall maintain a 2% breakage rate due to improper packaging (e.g. products shifting and/or lack of wrapping). Claims for goods damaged during the shipping process will be submitted directly to the carrier and not count towards the allotted breakage rate noted above. It is the Company’s responsibility to mark the SKUs as fragile in the Tondo Fulfillment app for breakage to be tracked and accounted for.

Breakage will be evaluated on a monthly basis and the number of orders that exceed the designated allowance will be credited the average replacement cost (i.e. declared value) of the products damaged in excess of 2% and waive all fees on the replacement order as outlined in the “Order Accuracy” section.

Inventory Accuracy

Due to good faith receiving (i.e. not counting each individual unit) and relying on supplier information noted on the inbound shipments, Tondo Fulfillment cannot ensure accuracy of inventory counts. Although inner cartons are not opened to account for every unit, cases and pallets are counted as an additional level of verification. Tondo Fulfillment will limit its liability up to $10/unit for full cartons that are missing after they were received and accounted for in our system. A valid purchase order and proof of payment must be provided before any credit is issued.

Receiving

Tondo Fulfillment shall receive and put-away inventory within three business days provided its published receiving guidelines have been followed.