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Ans: Upon a breach of Service level agreement between the supplier and Moglix, Moglix will penalize the supplier on the following aspects of SLA:

1. Order Processing Time: The Supplier should fulfil all orders within 24 business hours to avoid penalty on orders. These penalties shall be evaluated on month on month basis. The penalties shall be as per below mentioned table:

SLA – Order Processing Time	% Penalty (TP)
*Up to 2 Days	0
2 to 3 Days	4%
3 to 5 Days	5%
After 5 Days	6%

All charges would be as a % of Transfer Price (TP)

2. Cancellation: The Supplier shall ensure that that our cancellation does not go beyond 1% of total orders placed with Supplier. The orders shall get auto canceled if not shipped in 168 hours of orders placed. These penalties shall be evaluated on month on month basis. The penalties shall be as per below mentioned table:

SLA – Supplier Cancellation	% Penalty (TP)
Less Than 1%	0
1% to 2%	1.50%
2% to 2.5%	3%
2.5% to 4%	4%
>4%	5%

All charges would be as a % of Transfer Price (TP)

3. Re-Alignment: is a process of Re-assigning the order to next/another supplier, in the case when first supplier (on whom the order was first placed) is not able to fulfill the order. The order in our system automatically gets Re-assigned/ Re- aligned to next supplier who is in succession to fulfill the order. In the above case instead of applying cancellation penalty, Moglix will apply Re-alignment penalty on the first supplier. These penalties shall be evaluated on month on month basis. The penalties shall be as per below mentioned table:

SLA – Re-Alignment %	% Penalty (TP)
><2 %	0
2-5 %	3%
5-7 %	5%
>7%	7%

All charges would be as a % of Transfer Price (TP)

4. Miscellaneous Penalties:
   1. Defective: In the case, when product (order) is reported to be defective to Moglix by our end customer. Moglix shall reserve the right to apply penalty on the supplier if the case is found to be true.
   2. Wrong Product: In the case, when our end customer receives a product which is not exactly same as he/she ordered from different platforms of marketplace on Moglix. Moglix shall reserve the right to penalize the supplier if the case is found to be true.

   These penalties shall be evaluated on month on month basis. The penalties shall be as per below mentioned table:

   SLA – Violation	Per Order
   Defective product	25% of TP
   Wrong Product	50% of TP

   All charges would be as a % of Transfer Price (TP)

Ans: Following are the fees:

1. Packaging Fees

Supplier working in M-Ship Fulfillment mode and Vendor managed Inventory (VMI), M, shall be charged packaging fees of at the rate of 1.25% of the transfer price of order processed from the Supplier.

2. Platform Fees

Platform fees shall be applied on all the suppliers at the rate of up to 1.5% of total monthly sales of Supplier.

3. Storage Fees

Storage fee shall be charged on the suppliers working in the vendor managed inventory mode of fulfillment as per the space/ volume in cubic foots occupied by the inventory of supplier in our warehouse.

4. Merchandising Fees

Moglix shall charge the merchandising fees on all the suppliers who are selling products which are recognized labels by Moglix on total monthly sales of Supplier at the rate mentioned in the table below:

Revenue	% Fee
>5 Lacs	2%
<5 Lacs	3%

All charges would be as % of Booked Revenue /Gross Margin Value (GMV)