GoGo Xpress is committed to developing and nourishing trust among Sellers and Consumers by ensuring we never compromise safety, compliance, and experience of our products. We have developed this Merchant Quality Policy to serve as a guiding principles to everyone who is involved in using this Service. It is everyone’s responsibility to understand Their responsibilities, comply, and take action to ensure the integrity of GoGo Xpress is intact and our seller community and Buyers are protected and rewarded.

Capitalized terms used herein, where defined in the General Terms of Service, shall have the same meaning and definition as indicated therein.

The use of the term “Policy” in this Annex shall refer to this Annex.

1. Merchant Quality.
   
   We define merchant quality as a compliance and adherence of Sellers to our (i) terms and conditions, (ii) related policies, and (iii) sustainability standards. We put quality systems in place to ensure the safety of Sellers and Buyers that can help drive growth in the eCommerce industry and maintain the integrity of Our Service.
   
   Based on your compliance and adherence we may penalize or reward You as a seller on Our Service.
   
2. Compliance and Penalties.
   
   We monitor Your use of Our Service and also consolidate information provided by Your Buyers and Our operations and Fulfillment Partners to determine whether You are compliant with our Terms. Non-compliance is considered a violation which may either earn You demerit points or penalties as determined in the Terms of Our Service:
   • a. Non-Compliance Activities that subject You and Your Accounts to Penalties

• b. Non-Compliance Activities that subject You and Your Accounts, disposal of items, suspension, permanent deactivation, payment of damages, and/or legal action

• c. Non-Compliance Activities that subject You and Your Accounts Permanent Deactivation, Payment of Penalties, and Legal Action

3. Probationary Status and Strikeout
   
   We will put You and all of Your Accounts (including Associated Accounts) on probationary status (“Probation”) if you have met any of the following conditions:
   • a. Your Demerit Points are equal to 30.
   • b. Your Sustainable Metrics as defined in ANNEX 11 Sustainable Use Policy does not meet our standards.

Accounts under Probation will be monitored for improvement for three (3) weeks and be given one (1) Strikeout Point. If Your Account(s) has been put on probationary status, We will assign a Customer Success Advocate to help guide You on how You can improve Your use of Our Services.

If after three weeks, We see no improvement We will at Our discretion deactivate Your product feature access to accept and book payments, fulfill delivery and disbursal of your ongoing transactions, and permanently deactivate Your Account(s). However, if we see improvements on Your use of our Service after three weeks but still fall short Our standards, We may at Our discretion either extend the Probationary Status to another three (3) weeks or deactivate Your product feature access to accept and book payments, fulfill delivery and disbursal of your ongoing transactions, and permanently deactivate Your Account(s).

If after three weeks, you have met our standards in using Our Service will set Your Demerit Points to zero (0) if you have any but Your Strikeout Point will be on permanent record and will only be removed one (1) year after issuance.

You can only accumulate three (3) Strikeout Points. In the event you have accumulated three (3) Strikeout Points We will deactivate Your product feature access to accept and book payments, fulfill delivery and disbursal of your ongoing transactions, and permanently deactivate Your Account(s). You may only return to use Our Services after one year from Your permanent deactivation. If We detect You in Our Service we will charge You PHP 1,000,000.00 or Your remaining disbursals whichever is higher and permanently deactivate Your Accounts.

4. Seller Incubation Program
   
   We will reward You with certain privileges which may come in discounts, perks, and special product feature access if you consistently meet our merchant quality standards.

5. Nothing in this Annex shall limit or restrict Us from exercising our rights provided in other portions of the Terms.