SERVICE CONTRACT AGREEMENT (Inoculation Program with Revenue Sharing)
This Service Contract Agreement (“Agreement”) is made and entered into on this ___ day of ____, 20, by and between:
[Service Provider Company Name]
with principal office at ____________________________, represented herein by __________________ (“Service Provider”),
AND
[Farm Owner Name]
with farm address at ____________________________, represented herein by __________________ (“Farm Owner”),
Hereinafter collectively referred to as the “Parties.”
1. PURPOSE
The purpose of this Agreement is to set forth the terms and conditions under which the Service Provider will implement an Agarwood Inoculation Program (using biotic/chemical inoculants) on the Farm Owner’s Aquilaria plantation, with revenue sharing from the eventual sale of agarwood products.
2. SCOPE OF SERVICES
The Service Provider agrees to:
a. Conduct scientific inoculation of Aquilaria trees owned by the Farm Owner.
b. Provide all inoculation materials (e.g., fungal/chemical inoculants, tools, labor, supervision).
c. Monitor, assess, and maintain inoculated trees during the agreed-upon period.
d. Guide harvest timing and post-harvest handling to maximize resin quality.
3. OBLIGATIONS OF FARM OWNER
The Farm Owner agrees to:
a. Provide access to the plantation and trees for inoculation, monitoring, and harvesting.
b. Ensure security and protection of trees during the contract duration.
c. Refrain from unauthorized third-party inoculation or interference.
4. REVENUE SHARING
The net proceeds from the sale of agarwood products (chips, oil, powder) generated from the inoculated trees will be shared as follows:
- Farm Owner: ___%
- Service Provider: ___%
Net proceeds shall mean the gross sales amount minus agreed direct expenses (e.g., harvesting, distillation, packaging, transport, marketing).
5. DURATION
This Agreement shall commence on the date signed and remain in force for a period of ___ years, covering the inoculation, monitoring, harvesting, and marketing cycle.
6. HARVESTING & SALE OF PRODUCTS
a. Harvesting will be conducted jointly by both Parties or under mutually agreed supervision.
b. Products (chips, oil, etc.) shall be sold to pre-identified buyers or through a mutually approved sales channel.
c. Both Parties shall maintain transparency in weighing, grading, and selling procedures.
7. RECORDS & ACCOUNTING
The Service Provider shall maintain complete and accurate records of inoculation, harvest, and sales. A joint accounting report shall be prepared at each harvest/sale event, signed by both Parties.
8. TERMINATION
This Agreement may be terminated by either Party in case of:
- Breach of contract terms,
- Force majeure events (typhoon, fire, pests, disease outbreak),
- Mutual written agreement.
In case of termination, Parties shall settle accounts based on actual expenses and revenues incurred up to the date of termination.
9. DISPUTE RESOLUTION
Any disputes arising from this Agreement shall first be resolved amicably through negotiation. If unresolved, the matter shall be referred to arbitration/mediation under Philippine law (or applicable jurisdiction).
10. GOVERNING LAW
This Agreement shall be governed by and construed in accordance with the laws of the Republic of the Philippines.
SIGNATURES
[Authorized Representative]
Service Provider
Date: ____________
[Authorized Representative]
Farm Owner
Date: ____________