EXCLUSIVE DEALERSHIP AGREEMENT

 

This Exclusive Dealership Agreement ("Agreement"), made and effective this _______________________, by and between Clark Novelty Sign Sales, Inc., a Ohio corporation ("Manufacturer") and ______________________________ doing business as ___________________________" ("Dealer").

Manufacturer desires to appoint Dealer, and Dealer desires to accept appointment, as an exclusive distributor of Manufacturer's products within a defined area as set forth herein.

NOW, THEREFORE, in consideration of the mutual agreements promises set forth herein, the parties agree as follows:

1. Rights Granted.

Manufacturer hereby grants to Dealer the exclusive right, on the terms and conditions contained herein, to purchase, inventory, promote and rent "Manufacturer's Products" (as defined below) within the following area (the "Territory"): Refer to Designated Dealership Territory Sheet. The Designated Dealership Territory fee shall be renewed every 5 (five) years from the date of this agreement.Nothing herein shall prevent or prohibit Manufacturer from selling any of Manufacturer's Products directly to the following customers: In Territories other than the territory described.

2. Products.

As used in this Agreement, the term "Manufacturer's Products" shall mean the products, related service parts and accessories manufactured and/or sold by Manufacturer as follows:

Novelty Sign Displays and necessary hardware needed for such displays.

Novelty Sign Manual

Miscellaneous Business Supplies.

3. Terms of Sale.

All sales of Manufacturer's Products to Dealer shall be made pursuant to this Agreement at such prices and on such terms as Manufacturer shall establish from time to time on at least thirty (30) days notice. Manufacturer agrees to properly pack all items for shipment. Risk of loss due to damage or destruction of Manufacturer's Products shall be borne by Dealer after delivery to the carrier for shipment. Manufacturer will select the shipper unless Dealer requests a reasonable alternative. All orders are subject to acceptance by Manufacturer. Except as otherwise expressly agreed by Manufacturer in advance, this Agreement shall control all aspects of the dealings between Manufacturer and Dealer with respect to the Manufacturer's Products and any additional or different terms in any Dealer order are hereby rejected.

4. Marketing Policies.

Dealer will at all times maintain adequate inventories of Manufacturer's Products and will promote vigorously and effectively the rental of Manufacturer's Products.

5. Distributor's General Duties.

Dealer agrees not to engage in the distribution promotion, marketing or sale of any goods or products that compete or conflict with Manufacturer's Products. Dealer agrees to supply to Manufacturer a list of items handled by Dealer following Manufacturer's request to ensure that no conflict exists.

6. Advertising and Renting Policies.

Nothing herein shall prevent Dealer from independently advertising and marketing the Manufacturer's Products within the Territory, provided the form and content of the advertising or marketing materials are consistent with community standards. The Dealer agrees to refrain from operating said business or marketing Manufacturer's Products in any way that can be consider lewd, cruel, illegal, or in conflict with Manufacturer's interests.

7. Product Warranty Policies.

In the event that any of Manufacturer's Products are proved to Manufacturer's satisfaction to have been defective at time of sale to Dealer said Products would be replaced. MANUFACTURER MAKES NO WARRANTY TO DEALER WITH RESPECT TO THE PRODUCTS, EITHER EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, THE IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

8. Indemnification.

Dealer agrees to protect Manufacturer and hold Manufacturer harmless from any loss or claim arising out of the negligence of Dealer, Dealer's agents, employees or representatives in the installation, use, rental or servicing of Manufacturer's Products or arising out of any representation or warranty made by Dealer, its agents, employees or representations with respect to Manufacturer's Products that exceeds Manufacturer's limited warranty.

9. Order Processing and Returns.

A. Manufacturer will employ its best efforts to fill Dealer's orders promptly on acceptance, but reserves the right to allot available inventories among Dealers at its discretion.

B. Except for Manufacturer's products that are defective at the time of sale to Dealer, Manufacturer shall not be obligated to accept any of Manufacturer's Products that are returned. In the event such returns are accepted Manufacturer may impose a reasonable restocking charge.

10. Financial Policies.

Dealer acknowledges the importance to Manufacturer of Dealer's sound financial operation and Dealer expressly agrees that it will:

A. Pay promptly all amounts due Manufacturer in accordance with terms of sale extended by Manufacturer from time to time;

    • Furnish Manufacturer with financial statements in such form as Manufacturer may reasonably require from time to time for credit purposes; and

 

    • Furnish, at Manufacturer's request, a detailed reconciliation of Manufacturer's statements of account with Dealer's records, listing all differences, and showing net amount Dealer acknowledges to be due Manufacturer.

In addition to any other right or remedy to which Manufacturer may be entitled, shipments may be suspended at Manufacturer's discretion in the event that Dealer fails to promptly and faithfully discharge each and every obligation in this Section.

11. Use of Manufacturer's Name, Copyright Materials, and Business Practices.

Dealer will not use, authorize or permit the use of, the name "CNSS, Inc and/or A-Nete-Idea Novelty Sign Rental" or any other trademark or trade name, copyright material, or disclose any business practices owned by Manufacturer as part of its firm, corporate or business name in any way. Dealer shall not contest the right of Manufacturer to exclusive use of any trademark or trade name, copyright material, or disclose any business practices used or claimed by Manufacturer. Dealer may, subject to Manufacturer's policies regarding reproduction of same, utilize Manufacturer's name, trademarks or logos copyright material, or disclose any business practices in advertising on stationery and business cards. All exchanges of copyrighted materials, and business practices between Dealer and Manufacture shall remain private and confidential.

12. Relationship of the Parties.

The relationship between Manufacturer and Dealer is that of vendor and vendee. Dealer, its agents and employees shall, under no circumstances, be deemed employees, agents or representatives of Manufacturer. Dealer will not modify any of Manufacturer's Products without written permission from Manufacturer. Neither Dealer nor Manufacturer shall have any right to enter into any contract or commitment in the name of, or on behalf of the other, or to bind the other in any respect whatsoever.

13. Term and Termination.

Unless earlier terminated as provided below, the term of this Agreement shall commence _______________________ and shall continue until Date Unspecified. At the end of the term, the Agreement shall continue until terminated by either party on at least sixty (60) days prior notice.

A. Manufacturer may terminate at any time by written notice given to Dealer not less than ninety (90) days prior to the effective date of such notice in the event Manufacturer decides to terminate all outstanding Dealer agreements for Manufacturer's Products and to offer a new or amended form of distributor agreement.

B. Manufacturer may terminate this Agreement upon notice to Dealer, upon any of the following events: (1) failure of Dealer to fulfill or perform any one of the duties, obligations

Or responsibilities of Dealer in this Agreement; (2) any assignment or attempted assignment by Dealer of any interest in this agreement or delegation of Dealer obligations without Manufacturer's written consent; (3) any sale, transfer or relinquishment, voluntary or involuntary, by operation of law or otherwise, of any material interest in the direct or indirect ownership or any change in the management of Dealer; (4) failure of Dealer for any reason to function in the ordinary course of business; (5) conviction in a court of competent jurisdiction of Dealer, or a manager, partner, principal officer or major stockholder of Dealer for any violation of law tending, in Manufacturer's opinion, to affect adversely the operation or business of Dealer or the good name, goodwill, or reputation of Manufacturer, products of Manufacturer, or Dealer; or (6) submission by Dealer to Manufacturer of false or fraudulent reports or statements, including, without limitation, claims for any refund, credit, rebate, incentive, allowance, discount, reimbursement or other payment by Manufacturer.

 

14. Obligations on Termination.

On termination of this Agreement, Dealer shall cease to be an authorized distributor of Manufacturer and:

A. All amounts owing by Dealer to Manufacturer shall, notwithstanding prior terms of sale, become immediately due and payable

B. All unshipped orders shall be canceled without liability of either party to the other;

C. Dealer will resell and deliver to Manufacturer on demand, free and clear of liens and encumbrances, such of Manufacturer's Products and materials bearing Manufacturer's name as Manufacturer shall elect to repurchase, at a mutually agree price, but not in excess of Manufacturer's current price to distributors for such products and materials, provided that Manufacturer shall not be obligated to pay Dealer for any item originally provided free of charge; and

D. Neither party shall be liable to the other because of such termination for compensation, reimbursement or damages on account of the loss of prospective profits or anticipated sales, or on account of expenditures, investments, lease or commitments in connection with the business or goodwill of Manufacturer or Dealer or for any other reason whatsoever growing out of such termination.

15. Use of Name and or Copyrighted Material Prohibited.

On termination of this Agreement, Dealer will remove and not thereafter use any sign containing any trade name, logo or trademark of Manufacturer including, but not limited to, "CNSS, Inc. and/or A-Nete-Idea Novelty Sign Rental", and will immediately destroy all signs, products, stationery, advertising matter and other printed matter in its possession or under its control containing such name, or any of Manufacturer's copyrights, trademarks, trade names or logos. Dealer will not at any time after such termination use or permit any such trademark, trade name or logo to be used in any manner in connection with any business conducted by it or in which it may have an interest, or otherwise whatsoever as descriptive of or referring to anything other than merchandise or products of Manufacturer. Regardless of the cause of termination, Dealer will immediately take all appropriate steps to remove and cancel its listings in telephone books, and other directories, and public records, or elsewhere that contains the Manufacturer's name, logo or trademark. If Dealer fails to obtain such removals or cancellations promptly, Manufacturer may make application for such removals or cancellations on behalf of Dealer and in Dealer's name and in such event Dealer will render every assistance.

16. Acknowledgments.

Each party acknowledges that no representation or statement, and no understanding or agreement, has been made, or exists, and that in entering into this Agreement each party has not relied on anything done or said or on any presumption in fact or in law, (1) with respect to this Agreement, or to the duration, termination or renewal of this Agreement, or with respect to the relationship between the parties, other than as expressly set forth in this Agreement; or (2) that in any way tends to change or modify the terms, or any of them, of this Agreement or to prevent this Agreement becoming effective; or (3) that in any way affects or relates to the subject matter hereof. Dealer also acknowledges that the terms and conditions of this Agreement, and each of them, are reasonable and fair and equitable.

17. Final Agreement.

This Agreement terminates and supersedes all prior understandings or agreements on the subject matter hereof. Only a further writing that is duly executed by both parties may modify this Agreement.

18. Assignment.

Dealer may assign neither this Agreement nor any interest in this Agreement without the prior express written approval of Manufacturer, which may be withheld by Manufacturer at Manufacturer's absolute discretion.

19. No Implied Waivers.

Except as expressly provided in this Agreement, waiver by either party, or failure by either party to claim default, of any provision of this Agreement shall not be a waiver of any default or subsequent default.

20. Notices.

Any notice required by this Agreement or given in connection with it, shall be in writing and shall be given to the appropriate party by personal delivery or by certified mail; postage prepaid, or recognized overnight delivery services.

If to Manufacturer:

Clark Novelty Sign Sales, Inc.

3018 Brush Place NE

Canton, OH 44705

 

If to Dealer:

___________________________ ______

 

___________________________ ______

 

___________________________ ______

 

21. Governing Law.

This Agreement shall be construed and enforced in accordance with the laws of the state of Ohio.

22. Severability.

If any term of this Agreement is held by a court of competent jurisdiction to be invalid or unenforceable, then this Agreement, including all of the remaining terms, will remain in full force and effect as if such invalid or unenforceable term had never been included.

24. Headings.

Headings used in this Agreement are provided for convenience only and shall not be used to construe meaning or intent.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

Clark Novelty Sign Sales, Inc.

 

By: _______________________________

Janita Clark

President

 

___________________________ ________

Dealer

___________________________ ________

Address

___________________________ ________

City, State, Zip

___________________________ ________

Phone

___________________________ _______

Date

HOT LINKS

designated dealership territory form
dealership package order form

print, fill in, sign and date then mail to: Clark Novelty Sign Sales, Inc P.O. Box 7010 Station A Canton, OH 44705