The Supplier Rebate Agreement is essential for businesses operating in Malaysia that wish to formalize incentive arrangements within their supply chain relationships. This document type is commonly used when suppliers offer financial incentives to customers for meeting specific purchasing targets or other performance criteria. The agreement ensures compliance with Malaysian legal requirements while providing a clear framework for calculating, claiming, and paying rebates. It typically includes detailed schedules for rebate calculations, product listings, and reporting requirements, making it particularly valuable for high-volume trading relationships or complex supply arrangements. The Supplier Rebate Agreement should be tailored to comply with Malaysian commercial law, including the Contracts Act 1950 and Competition Act 2010, while addressing specific industry requirements and business needs.
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1. Parties: Identifies and provides details of the supplier and the customer entering into the rebate agreement
2. Background: Sets out the context of the agreement and the business relationship between the parties
3. Definitions: Defines key terms used throughout the agreement, including specific rebate-related terminology
4. Rebate Structure: Details the basic framework of how rebates will be calculated and earned
5. Calculation Period: Specifies the timeframes for calculating and assessing rebate achievements
6. Payment Terms: Outlines when and how rebate payments will be made, including payment method and currency
7. Record Keeping and Audit Rights: Specifies requirements for maintaining records and the right to audit rebate calculations
8. Confidentiality: Protects sensitive commercial information shared between parties
9. Term and Termination: Specifies the duration of the agreement and circumstances for termination
10. Governing Law and Jurisdiction: Establishes Malaysian law as governing law and sets jurisdiction for disputes
1. Product Returns and Adjustments: Include when the rebate calculation needs to account for returned products or pricing adjustments
2. Marketing and Promotion Requirements: Include when rebates are tied to specific marketing activities or promotional requirements
3. Exclusivity Provisions: Include when the rebate structure is linked to exclusive purchasing arrangements
4. Compliance with Anti-Corruption Laws: Include when dealing with government-linked entities or high-risk industries
5. Force Majeure: Include when parties want protection from unforeseen events affecting rebate achievements
6. Data Protection: Include when personal data processing is involved in rebate administration
7. Change Control: Include for complex agreements where rebate structures may need periodic adjustment
1. Schedule 1 - Rebate Calculation Methodology: Detailed formulas and examples of how different types of rebates will be calculated
2. Schedule 2 - Product List: List of products or services covered by the rebate agreement and their relevant categories
3. Schedule 3 - Rebate Targets and Thresholds: Specific sales targets, thresholds, and corresponding rebate percentages
4. Schedule 4 - Reporting Template: Standard format for rebate calculation reports and supporting documentation
5. Schedule 5 - Contact Details: Key contacts for rebate administration and notices
6. Appendix A - Claim Form: Standard form for submitting rebate claims
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