The Supplier Rebate Agreement is essential for businesses operating in New Zealand that wish to formalize volume-based or performance-based incentive arrangements with their suppliers. This document is particularly relevant when parties want to establish clear, legally binding terms for rebate calculations, payments, and related obligations. It addresses key commercial considerations while ensuring compliance with New Zealand's Contract and Commercial Law Act 2017, Fair Trading Act 1986, and relevant tax legislation. The agreement typically includes detailed schedules for rebate calculations, qualifying products, and reporting requirements, making it suitable for complex commercial relationships where significant rebates are involved. Its use is recommended whenever businesses want to document rebate arrangements that go beyond simple discount structures, particularly when the annual rebate value is material to either party.
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1. Parties: Identifies the supplier and recipient of the rebates, including full legal names and addresses
2. Background: Sets out the context of the agreement, including the existing trading relationship and purpose of the rebate arrangement
3. Definitions: Defines key terms used throughout the agreement, including 'Rebate Period', 'Qualifying Purchases', 'Rebate Rate', etc.
4. Rebate Entitlement: Establishes the basic principles of when and how rebates will be earned
5. Calculation of Rebates: Details the methodology for calculating rebates, including any tiered structures or volume-based calculations
6. Payment Terms: Specifies when and how rebates will be paid, including payment method and currency
7. Records and Audit: Outlines record-keeping requirements and audit rights to verify rebate calculations
8. Term and Termination: Specifies the duration of the agreement and circumstances for termination
9. Confidentiality: Protects confidential information shared between parties
10. General Provisions: Standard boilerplate clauses including governing law, notices, and assignment
1. Marketing Support: Include when rebates are tied to marketing activities or promotional requirements
2. Performance Targets: Add when rebates are conditional on meeting specific performance or quality metrics
3. Exclusivity Provisions: Include when the rebate arrangement is tied to exclusive purchasing commitments
4. Set-Off Rights: Add when parties want the ability to set off rebates against other payment obligations
5. Force Majeure: Include when parties want protection from events beyond their control affecting rebate calculations
6. Tax Provisions: Add detailed tax clauses when complex tax implications exist or cross-border payments are involved
7. Dispute Resolution: Include specific dispute resolution procedures when parties want alternatives to court proceedings
8. Change Control: Add when flexibility is needed to modify rebate structures during the agreement term
1. Schedule 1: Rebate Structure: Detailed breakdown of rebate rates, tiers, and calculation methodologies
2. Schedule 2: Qualifying Products: List of products or services that qualify for rebates
3. Schedule 3: Reporting Template: Standard format for rebate calculations and reporting
4. Schedule 4: Payment Procedures: Detailed procedures for claiming and paying rebates
5. Appendix A: Performance Metrics: Specific targets or KPIs linked to rebate entitlements
6. Appendix B: Audit Procedures: Detailed procedures for conducting rebate audits
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