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ABOUT DCP DESIGNS

BEACH AND BOAT

This Agreement dated for reference _________________, 200_.

AMONG:

DCP Designs, a company with a business office at 140 Reid Road, Salt Spring Island, British Columbia V8K 2J8

(the "Supplier")

AND:

____________________________________________________________

("the Distributor")

 

(hereinafter referred to as the "Parties")

 

WHEREAS:

A. the Supplier grants the Distributor an exclusive right to sell the products described in Schedule A (the "Products").

 

IN CONSIDERATION OF THE MUTUAL PROMISES CONTAINED IN THIS AGREEMENT, THE PARTIES AGREE AS FOLLOWS:

DISTRIBUTION RIGHTS

1.01 The Supplier grants the Distributor an exclusive right to sell the Products within the territory described in Schedule B for a period of _______________________ commencing________________________________(the "Distribution Rights").

1.02 The Supplier agrees that during the term of this Agreement, it shall provide to the Distributor, at the purchase prices as set out in Schedule C such quantities of the Products as are agreed to by the Distributor and the Supplier from time to time.

1.03 The Distributor shall not sell or attempt to sell the Products outside of the territory described in Schedule B.

1.04 The Distributor shall use its best efforts to sell the Products for the duration of the Distribution Rights. For sales other than wholesale purchases, the Distributor shall keep accurate records of the Products sold, and shall provide the Supplier with a copy of these records on a monthly basis, or as the Parties may agree to from time to time.

1.05 The Distributor may describe itself as an authorized distributor of the Products for the Duration of the Distribution Rights but shall not characterize itself or enter into any transactions as an agent or in the name of the Supplier.

PRODUCT PRICES

2.01 The Supplier shall supply the Distributor with Products to the Supplier at ____________________________________________________________________________________________________________________________________

(address)

 

at the prices(s), set out in Schedule C. For greater certainty, the prices(s) set out in Schedule C are quoted exclusive of any taxes and duties payable in connection with the sale which, if payable by the Supplier, may be added by the Supplier to the cost of the Products to the Distributor.

2.02 To clarify 2.01, the Supplier and Distributor may agree on a modification of the commission rate to account for shipping costs.

 

2.03 The Distributor shall pay the Supplier for the Products ordered from the Supplier under the conditions set out below (or in Schedule D):

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

(terms of payment)

 

 

2.04 All expenses in connection with the Distributor’s performance of this Agreement and its activities including but not limited to travel, automobile, salaries, supplies, transportation, meals, lodging, insurance, advertising and taxes shall be borne by the Distributor and the Distributor shall be solely responsible for the payment thereof.

 

2.05 The prices set out in Schedule C hereto, shall remain in full force and effect from the date of execution of this Agreement unless written notice is provided to the Distributor by the Supplier, setting out an amended price list (the "Notice"). Any price increase provided by the Supplier to the Distributor shall take effect ninety (90) days from the date the Distributor is deemed to have received the Notice. Any reduction in price shall be deemed to be effective immediately and the Distributor shall have the benefit of the lower price.

DEFECTIVE PRODUCTS

3.01 The Supplier agrees that during the term of this Agreement, the Supplier shall refund or credit to the account of the Distributor the amounts paid or owing by the Distributor for any Products which are defective or faulty so as to be unsaleable and which the Distributor returns to the Supplier (or gives notice) within 5 days of receiving the Product (the "Notification"), provided that the fault or defect does not arise as result of the actions of the Distributor or breach of the Distributor’s obligations under this Agreement. If the Notification is not provided within 5 days, and the Distributor has purchased the Product wholesale, then the Supplier may refuse to accept the return of the defective Product.

3.02 All Products that are returned by the Distributor to the Supplier shall be returned at the cost to the Distributor.

3.03 The Supplier agrees to indemnify the Distributor against third-party liability incurred by selling defective Products but only to the extent that the Distributor could not have avoided or minimized the liability or damages by exercising reasonable care not to sell defective Products.

DISPLAY FIXTURES (includes both hat racks and display features, hereinafter referred to as "Fixture(s)")

Purchase

4.01 The Distributor may purchase a Fixture from the Supplier for _______ CAD, if the Distributor has agreed to order a minimum of _____ CAD of the Product.

4.02 If the Distributor is paying the Supplier on a commission sales basis for the Product, then the Fixture may be paid for incrementally with the monthly sales submissions over a period of ____months. The Parties shall agree upon the terms and conditions of the payment of the Fixture.

Loan

4.03 The Distributor may acquire a hat rack on loan from the Supplier under the following conditions:

(a) the hat rack shall only be used to display DCP Designs Product with the DCP Designs banner.

(b) The Distributor is responsible for all shipping costs related to the hat rack. (c) The Distributor is responsible for all damage to the hat rack, excluding damage caused by shipping, reasonable wear and tear, and damage caused as the Supplier.

USE OF INTELLECTUAL PROPERTY

5.01 With respect to the use of any of the trade-marks or other intellectual property associated with the Products, now or at any time associated with the name of the Supplier (the "Trade-marks"), the Parties agree as follows:

(a) the Distributor shall not change or vary any of the Trade-marks nor use any other Trade-marks which are similar to or substantially similar to or so nearly resembling the Trade-marks so as to be likely to cause deception or confusion to the public.

5.02 With respect to the use of the Trade-marks the Distributor agrees as follows:

(a) the Distributor recognizes that the Supplier is the owner of the Trade-marks and all the goodwill therein and agrees that the same shall remain vested in the Supplier both during the term of this Agreement and thereafter;

(b) the use of the Trade-marks by the Distributor shall be used on behalf and for the benefit of the Supplier;(c) the Distributor agrees not to challenge the validity or ownership of the Trade-marks and/or the goodwill therein; and(d) any goodwill which the Distributor may acquire from the use of the Trade-marks shall vest in and become the absolute property of the Supplier and the Distributor undertakes and agrees at the request and expense of the Supplier, whether before or after the termination of this Agreement, to execute all such instruments and to do all such acts as may be necessary to vest absolutely in the Supplier the said goodwill.

CONFIDENTIAL INFORMATION

6.01 The Distributor agrees that all information, knowledge and data of a confidential nature ("Confidential Information") which it shall acquire or which may come to its knowledge during the term of this Agreement shall at all times be held by the Distributor in confidence and the Distributor agrees that it shall not disclose, divulge, communicate orally, in writing or otherwise to any person or persons any Confidential Information included in this information, but not limited to, customer lists.

CONSEQUENCES OF BREACH 

7.01 If the Distributor breaches any of the provisions outlined in sections 5 and 6, the Supplier shall be entitled to:

(a) damages or indemnity from the Distributor for any lost revenue, goodwill or assets caused by the breach;

(b) terminate the contract upon written notice to the Distributor.

 

PRODUCT IMAGE

8.01 Other than in the matter of pricing, the Distributor shall not do or permit anything to be done to prejudice the market image of the Products or the Supplier.

SUMMARY TERMINATION OF DISTRIBUTION RIGHTS

9.01 If the Distributor breaks any term of this agreement, the Supplier may summarily terminate the Distribution Rights on notice in writing to the Distributor.

9.02 On termination of the Distribution Rights for any reason, the Distributor shall immediately cease to describe itself as an authorized distributor of the Supplier and, at the Supplier’s option, the Supplier may buy back the Distributor’s unsold Products or any part of them at the Distributor’s cost.

ASSIGNMENT

10.01 The Distributor shall not assign the benefit of this agreement or subcontract its obligations without the consent in writing of the Supplier, which consent may be withheld without good reason.

REPRESENTATIONS AND WARRANTIES

11.01 The Distributor acknowledges that the Supplier is relying upon the representations and warranties set out in this Agreement and in connection with its entering into this Agreement the Distributor represents and warrants as follows:

(a) the Distributor is a valid business organization pursuant to the laws of the province of British Columbia;

(b) the Distributor has all the requisite power and authority to execute and deliver this Agreement and has all necessary power and authority to perform the obligations of the Distributor as set out herein;

11.02 The Supplier acknowledges that the Distributor is relying upon the representations and warranties set out in this Agreement and in connection with its entering into this Agreement the Supplier represents and warrants as follows:

(c) the Supplier is a valid business organization pursuant to the laws of the province of British Columbia;

(d) the Supplier has all the requisite power and authority to execute and deliver this Agreement and has all necessary power and authority to perform the obligations of the Supplier as set out herein;

MISCELLANEOUS

12.01 In this agreement, the singular includes the plural and the masculine includes the feminine and neuter and vise versa unless the context otherwise requires.

12.02 The capitalized headings in this agreement are only for convenience of reference and do not form part of or affect the interpretation of this agreement.

12.03 If any provision or part of any provision in this agreement is void for any reason, it shall be severed without affecting the validity of the balance of the agreement.

12.04 Time is of the essence of this agreement.

12.05 There are no representations, warranties, conditions, terms or collateral contracts affecting the transaction contemplated in this agreement except as set out in the agreement.

12.06 Nothing in this agreement is intended to constitute a partnership between any of the parties.

12.07 This agreement binds and benefits the parties and their respective heirs, executors, administrators, personal representatives, successors, and assigns.

12.08 This agreement is governed by the laws of the Province of British Columbia. The parties have executed this Agreement in_______________, _____________________, on _________________, 200_ 

Signed by ____________________ in the presence of: ____________________ ______________________ Signature of Witness Authorized Signatory____________________ ______________________Name of Witness Authorized Signatory ____________________Address of Witness 

Signed by DCP Designs  in the presence of:______________________ Signature of Witness _______________________________________ Dana Pennington Name of Witness______________________ Address of Witness

SCHEDULE "A"

The Schedule will consist of the current Products being manufactured by the Supplier for which the Distributor is being retained to distribute.

SCHEDULE "B"

SCHEDULE "C"

SCHEDULE "D"

For Wholesale

The Supplier shall provide the Distributor with an invoice (the "Invoice") for payment upon the delivery of the Products. The Distributor shall pay the Invoice thirty (30) days from the date of the Invoice. The Supplier shall not date any invoice earlier than the date of shipment.

Failure to pay the Invoice or make reasonable arrangements to pay the Supplier may be considered a breach of this Agreement.

 

For Commission

Further to section 1.04 of this Agreement, the Supplier, upon receiving an accurate record of the Products sold, shall provide the Distributor with an invoice (the "Invoice") for payment. The Distributor shall pay the Invoice thirty (30) days from the date of the Invoice.

Failure to pay the Invoice or make reasonable arrangements to pay the Supplier may be considered a breach of this Agreement

 

 

 

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