Consignment Agreement -Key Terms
PURPOSE
Vendor places cannabis products at AZCB licensed facility under a consignment arrangement. Vendor retains ownership until sale. All products must comply with Arizona Department of Health Services (AZDHS) medical and adult use cannabis regulations.
AZDHS COMPLIANCE REQUIREMENTS
Vendor warrants that all Products are tested by an AZDHS approved third party laboratory, meet all testing requirements, include valid COA's, are labeled properly, use child resistant packaging, and are tracked in Dutchies or any AZDHS approved seed-to-sale tracking software and/or systems.
RETAIL PRICING
Vendor determines retail sales price. Changes must be communicated in writing.
PAYMENT TERMS
Vendor receives sixty percent (60%) of the retail sale price. Consignee keeps a forty percent (40%) margin protection after any promotions run by the Vendor. Payouts are issued on the 10th of the month following the month of sale.
INVENTORY OWNERSHIP & MANAGEMENT
Vendor retains ownership until sale. Vendor provides accurate counts and compliant products.
EXPIRATION, REMOVAL & DISPOSAL
Vendor must retrieve items within one week of expiration. Unretrieved items may be destroyed under AZDHS waste protocols.
HOLD HARMLESS
IMPORTANT LIABILITY CLAUSE:
Only AZCB is responsible for payments. Vendor holds the license holder harmless. Yilo is not responsible for payment of any kind. The Vendor agrees to fully indemnify, defend, and hold harmless the Consignee, its owners, officers, employees, agents, affiliates, and the license cannabis facility from any and all claims, liabilities, damages, losses, consumer complaints, injuries, adverse reactions, product defects, contamination, mislabeling, non-compliance, regulatory violations, or any other issues arising from or related to the Vendor's products.
The Vendor acknowledges and accepts full responsibility for the safety, quality, testing, compliance, accuracy of labeling, proper packaging, and any and all regulatory obligations associated with any products supplied. In the event of any consumer dispute, health concern, product recall, regulatory investigation, or legal action involving the Vendor's products, the Vendor assumes full and exclusive responsibility and agrees that the Consignee shall have no liability of any kind.
TERMINATION
Either Party may terminate with 14 days written notice.
RELATIONSHIP
No partnership, joint venture, or employment relationship is created.
ENTIRE AGREEMENT
This document supersedes all prior agreements.
GOVERNING LAW
Arizona law and AZDHS rules govern this Agreement.
