Commissions and Payments
3.1 In addition to the commissions payable to you, we will also pay Harmonized Sales Tax (“HST”) applicable to those commissions if you provide APG with a warranty that you are registered under the Excise Tax Act (“ETA”), together with a copy of your ETA registration, a warranty that you will assess and remit the HST payable and indemnify APG in respect of any HST payable by you. If the information, as set out in this section 3.1, is not provided, HST will not be paid to you in addition to the commissions. It is agreed and understood that you are solely responsible for your own HST obligations under the ETA.
3.2 Pricing for open edition or limited edition artwork that is produced and shipped by APG shall be based on the pricing in our portal as set by APG, plus the Licensor’s commission, as set by the Licensor. The current default rate for the Licensor’s commission in our portal is twenty five (25%) percent of set cost, but can be changed to any other amount (percentage or dollar specific), by the Licensor. For print to order works, APG will print the work and ship to the customer following an order. Shipping of limited edition or one of a kind works produced and shipped by the artist is addressed in Section 3.5 below.
3.3 A Licensor may offer limited edition prints under 20 inches in size and in a quantity between fifty (50) to two-hundred fifty (250) as set by APG. Such prints shall be offered at a set price to be determined by APG and set commission to be determined by APG, payable to the Licensor.
3.4 In addition to the production costs payable to APG in Section 3.2, on the sale of open edition or limited edition artwork produced and shipped by APG, APG’s commission shall be thirty (30%) percent of Licensor's commission, plus three and half (3.5%) percent processing fee, with the remaining sixty-six and half (66.5%) percent accruing to Licensor.
3.5 In the sale of limited edition or one of a kind artwork produced and shipped by Licensor, APG’s commission shall be thirty (30%) percent of the sale price, plus three and half (3.5%) percent processing fee, with the remaining sixty-six and half (66.5%) percent accruing to Licensor.
3.6 The Licensor will set a shipping rate for limited edition and original artwork produced and shipped by Licensor. APG charges a processing fee of three and half (3.5%) percent on the shipping rate set by the Licensor.
3.7 In the sale of any artwork through an online collaboration between APG and third party, with the applicability of this section 3.6 to such a relationship and the superiority to any other section in this Agreement being subject to the sole discretion of APG, APG’s commission shall be forty (40%) percent of the sale price, plus a three and half (3.5%) percent processing fee, with the remaining fifty-six and half (56.5%) percent accruing to Licensor. In calculating the “sale price” for the purposes of this section 3.6, any costs associated with production and shipping incurred by APG shall be first subtracted from the gross purchase price, and paid to APG, with the balance being deemed to be the sale price.
3.8 In the sale of any artwork via a physical gallery and/or a live event, with the applicability of this section 3.8 to determining if such a sale did occur at a physical gallery and/or live event and the superiority to any other section in this Agreement being subject to the sole discretion of APG, APG’s commission shall be fifty (50%) percent of the sale price, with the remaining fifty (50%) percent accruing to Licensor. In calculating the “sale price” for the purposes of this section 3.7, any costs associated with production and shipping incurred by APG shall be first subtracted from the gross purchase price, and paid to APG, with the balance being deemed to be the sale price.
3.9 Any artwork sold in connection with an APG affiliate, with APG affiliates being defined in the applicable Affiliate Agreement, is subject to a commission payable to the affiliate of up to ten (10%) percent of the sale price, with the commission percentage payable for each artwork to be determined by APG, in its sole discretion, and payable by the Licensor and APG in equal parts to the affiliate. The Affiliate Agreement can be found on APG’s website and through the following link: https://www.artprovocateur.com/affiliate-agreement.
3.10 All artwork must be securely packaged and shipped by an approved APG carrier. Where the artwork does not conform to the images or description on the APG website (as prepared by the Licensor), or is damaged in shipping, the customer shall have a right to notify APG of their intention to return the work not more than fourteen (14) days after delivery, for a full refund of the customer’s purchase price, including both the Licensor’s fee and APG’s commission, and shipping costs shall be charged to the Licensor.
3.11 APG, and the Licensor, in the case of limited edition and one of a kind works shall arrange for insurance on shipments, such that where artwork is damaged in shipment a corresponding amount should be payable from the shipper or its insurer to APG, with the net proceeds to be split between APG and the Licensor in accordance with the sharing formula established in respect of the work.
3.12 Commissions contemplated herein shall be sent to the Licensor via selected method of payment once an order is marked as Complete, twenty-eight days (28) after dispatch of the work to the buyer, on condition that the work has not been returned, with notice made by email to the Licensor, and shall be paid (a) to the Licensor’s PayPal account each Wednesday, or (b) at the option of Licensor, by cheque or wire transfer payable from APG to Licensor, delivered on or before the fifteenth (15th) day of each month, which cheque shall be denominated and drawn in U.S. dollars; provided that (a) amounts in respect of limited edition or one of a kind works shall become available to be claimed on the date that the customer’s fourteen (14) day right of return expires; and (b) where the Licensor elects to be paid by cheque or wire transfer, rather than through PayPal, a US$55.00 processing fee shall be deducted from such payment by APG. It is expressly acknowledged that the Licensor is not an employee of APG, and is responsible for remitting its own sale tax, income tax and any other taxes which may arise as a result of the commission payment.
3.13 The Licensor agrees that, where a sale of a one of a kind or limited edition work sells through direct sale, and such sale arises in whole or in part as a result of the promotional efforts of APG, the Licensor is obligated to pay the commission contemplated in Section 3.5 above to APG. It is the responsibility of the Licensor to notify APG of any private sale of one of a kind or limited edition works as soon as possible following sale and marking it as sold on the APG website through the artist portal; if APG effects a sale of one of a kind or limited edition work, and such work is not available due to a prior private sale by the Licensor, the Licensor shall be liable to APG for the commission contemplated in Section 3.5 above in respect of such work.
3.14 From time to time, APG may run promotional sales offering a percent (%) or flat rate ($) discount on Products. The Licensor agrees that, where a sale of an artwork sells with a discount, the commission paid to the Licensor will be discounted proportionally.
Establishing how, when and how much you get paid. The section is very important as it establishes the consideration under this agreement and explains the shipping of limited edition and one-of-a-kind artworks. Some of the responsibilities of the Parties are clarified.
3.1 ETA registered artists will be paid their portion of sales tax collected.
3.2 Artwork produced by APG: Cost + Licensors Markup = Retail Price
3.3 Small prints under 20": pricing and quantity is set by APG
3.4 Artwork produced by APG, APG commission: 33.5%
3.5 Artwork produced by Licensor, APG commission: 33.5%
3.6 Artwork produced by Licensor, cost of shipping, APG fee: 3.5%
3.7 Sales produced via brand collaboration, APG commission: 43.5%
3.8 Sales produced via pop-up gallery or live event, APG commission: 50%
3.9 Sales produced by affiliate partner pay marketing fee of up to 10%. This fee is split between APG and Licensor (50/50)
3.10 All artwork must be securely packaged. Customer has the right to return their purchase for a full refund within 14 days.
3.11 Shipments must be insured.
3.12 Artist payment is sent via PayPal or wire transfer 28 days after dispatch of work to the buyer.
3.13 Artwork sold due to APG's promotional efforts will pay APG its rightful commission.
3.14 When APG runs a sale, your commission will be adjusted proportionally.