Rebate agreement term sheet

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RECYCLABLES REBATE AGREEMENT: TERM SHEET

Seller (generator): ______________________   Sites: ______________________
Buyer: ______________________                 Date: ______________________

1. MATERIAL
   Grade: OCC #11 per ReMA Scrap Specifications Circular (edition: ____)
   Other materials covered: ______________________ (none unless listed)
   Prohibitives max: ____%   Outthrows incl. prohibitives max: ____%
   Bale size / min weight / ties: ______________________

2. PRICE (per net ton, monthly)
   Formula:  [ ] flat $____
             [ ] index + / - $____
             [ ] ____% of index
             [ ] ____% of index - $____
             [ ] ____% of the greater of floor and actual sale price
   Worked example at index $____: $____ per ton

3. INDEX
   Publication / assessment: ______________________
   Region: ____________   Side of range: [ ] high [ ] low [ ] midpoint
   Month used: [ ] month of shipment [ ] prior month [ ] average of ____
   Successor if discontinued: ______________________

4. FLOOR AND CAP
   Floor: $____ per ton (applies [ ] before [ ] after quality deductions)
   Cap:   $____ per ton or [ ] none

5. FREIGHT AND PICKUP
   Freight: [ ] in the price [ ] $____ per load [ ] $____ per ton
   Fuel surcharge: [ ] none [ ] tied to (public series): ____________
   Pickup within ____ business days of request; empty trailers on site: ____

6. EQUIPMENT
   Item(s): ______________________   Charge: $____ per month
   Service response: ____ hours; charge stops while out of service: [ ] yes
   Removal at end: [ ] free [ ] $____

7. LOAD MINIMUMS
   Minimum per load: ____ lb / ____ units   Light-load charge: $____

8. QUALITY CLAIMS
   Notice within ____ business days, with photographs and measured %
   Remedy: [ ] deduct excess weight [ ] downgrade to ______ [ ] reject only above ____%
   Disposal charge cap: $____ per ton

9. MOISTURE
   Limit: ____%   Test method: ____________   Deduction: ____________

10. WEIGHTS AND RECORDS
   Scale: ____________   Ton = [ ] 2,000 lb [ ] 2,200 lb [ ] 2,240 lb
   Scale ticket per load: [ ] yes   Annual audit right: [ ] yes

11. PAYMENT
   Statement and payment within ____ days of month end, by ____________
   Credits in excess of invoices paid out: [ ] yes

12. TITLE AND RISK
   Pass to Buyer on: [ ] collection [ ] delivery [ ] acceptance
   Rejected loads are Buyer's responsibility until returned: [ ] yes

13. TERM
   Start: ________   Length: ____ months
   After term: [ ] month to month [ ] renews for ____ unless notice ____ days before

14. EXCLUSIVITY
   [ ] none [ ] OCC only at listed sites [ ] other: ____________
   Matching right: [ ] none [ ] ____ days, offer details kept confidential

15. TERMINATION
   For uncured breach on ____ days' notice. Missed pickups count as breach: [ ] yes
   Early-termination fee: [ ] none [ ] limited to unrecovered equipment cost

This template is a starting point for a negotiation, not legal advice. Have the final agreement reviewed by your own counsel.
Source: recyclingcontracts.com