Section 10: Chargebacks Schedule

Violation of Section 2 – may result in monetary penalties including but not limited to attorney’s fees and expenses, the rights to cancel outstanding POs, and may lead to termination of business relationship depending on the severity of the violation. All expenses related to the violation will be notified and invoiced subsequently. 

Violation of Section 3 – 

  1. If we discover any failed testing on one of our programs that we have not been informed prior to shipping from the factory, we may require a full RTV (at factory’s expenses), reasonable loss of sales revenue, plus any additional legal fees that may incur. 
  2. If a program fails testing that will require additional labeling in order for us to sell in any market, we will pass on all related labor and materials charges to the factory. 

Violation of Section 4 – any tardiness in sending samples that affect sales presentation, pending production approval, and/or post-production quality check will result in a chargeback of USD 500.00 per SKU

Violation of Section 5 – 

  1. Incorrect carton UPC: USD 10.00 per carton + USD 50.00 per occurrence
  2. Incorrect shoebox UPC: USD 2.00 per shoebox + USD 50.00 per occurrence + material/labor to reprint and relabel shoebox label.
  3. Incorrect shoebox size resulting in damages and/or space utilization in shipping and storage: to be communicated per incident.
  4. Incorrect or missing shoe markings: may result in RTV at factory’s expense if the issue is widespread. 
  5. Incorrect Logos: may result in remake, air freight, and/or RTV at factory’s expense.

Violation of Section 6 – may result in remake, air freight, and/or monetary penalties including but not limited to Return to Vendor (RTV) at the factory and its representative’s expenses, remedy the defects to eliminate any potential liability due to safety issues, and the rights to cancel outstanding POs. All expenses related to the violation will be notified and invoiced for payment subsequently. 

Violation of Section 7 – may result in monetary penalties including but not limited to Return to Vendor (RTV) at the factory and its representative’s expenses, remedy the defects to eliminate any potential liability due to safety, and the rights to cancel outstanding POs. All expenses related to the violation will be notified and invoiced for payment subsequently. 

Violation of Section 8 – see chargebacks amount as noted within this section.

Violation of Section 9 – see chargebacks amount as noted within this section.

3PL Partners –
1. EDI document (945): will need to be sent accurately and in a timely manner. Any errors, inaccuracy, tardiness, or duplicate transmission to correct the workflow will be assessed at $50.00 per document plus any end-customer related chargebacks.

2. Shipping document: such as packing list and BOL must be sent with accurate details and match the EDI 945 tranmission. Any discrepancies that requires additional research from our end may result in a chargeback.

3. Order extension: If a shipment has past the order’s cancel date (caused by excessive extension request) that results in a shipping penalty from our end-customer, we will pass on the chargeback.

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