Below is SCHEDULE E: REVENUE SHARE & HARVEST PROCEEDS COMPUTATION, drafted in formal, contract-ready language, consistent with Philippine agribusiness practice, and aligned with agarwood trading realities.

This schedule is designed to be clear to farmers, defensible to investors, and protective of Crown MycoResin Biotech Inc.

SCHEDULE E

REVENUE SHARE & HARVEST PROCEEDS COMPUTATION

(Shared Production Model – Agarwood)

This Schedule forms an integral part of the Contract Inoculation Agreement (CIA) between Crown MycoResin Biotech Inc. (“Service Provider”) and the Client.

1. PURPOSE OF REVENUE SHARE MODEL

The Revenue Share Model is intended to:

Reduce the Client’s upfront inoculation costs
Align incentives between the Parties
Allow the Service Provider to participate in upside value from successful resin production

This model applies only when expressly selected in the main Agreement.

2. OWNERSHIP OF TREES & AGARWOOD

2.1 All trees remain the property of the Client at all times.

2.2 Agarwood harvested from the trees shall be subject to revenue sharing, not transfer of ownership, unless otherwise agreed in writing.

3. DEFINITION OF GROSS & NET PROCEEDS

3.1 Gross Proceeds

“Gross Proceeds” means the total realized value from the sale of agarwood products, including:

Agarwood chips
Agarwood blocks
Crude agarwood oil (if applicable)

3.2 Allowable Deductions

The following costs may be deducted from Gross Proceeds to determine Net Proceeds:

Harvest labor
Primary processing (chipping, drying, grading)
Packaging & basic transport to buyer
Government fees directly related to harvest or transport

No overhead, financing costs, or unrelated farm expenses shall be deducted unless expressly agreed.

3.3 Net Proceeds Formula

Net Proceeds = Gross Proceeds – Allowable Deductions

4. REVENUE SHARE PERCENTAGES

Unless otherwise specified, Net Proceeds shall be shared as follows:

Party	Share of Net Proceeds
Crown MycoResin Biotech Inc.	20% – 40%
Client	60% – 80%

The exact percentage shall be specified in the main Agreement or Schedule B addendum.

5. SAMPLE COMPUTATION (ILLUSTRATIVE ONLY)

Gross Proceeds (Sale of Agarwood Chips):
₱5,000,000

Allowable Deductions:

Harvest & processing: ₱700,000
Transport & fees: ₱300,000

Total Deductions: ₱1,000,000

Net Proceeds:
₱4,000,000

Revenue Share Example (30% / 70%):

Crown MycoResin Biotech Inc. (30%): ₱1,200,000
Client (70%): ₱2,800,000

6. PAYMENT TIMING & METHOD

6.1 Revenue shares shall be settled:

Within thirty (30) days from receipt of payment by Client, or
Through escrow or joint account if agreed

6.2 Payments shall be supported by:

Sales invoices
Buyer receipts
Deduction breakdown

7. TRANSPARENCY & AUDIT RIGHTS

7.1 The Client shall maintain accurate harvest and sales records.

7.2 The Service Provider shall have the right to:

Review sales documentation
Verify deductions
Appoint an independent auditor at its own cost

8. MULTIPLE HARVEST EVENTS

Revenue sharing applies:

Per harvest event, or
Cumulatively, as agreed

Each harvest shall be accounted for separately unless otherwise stated.

9. NON-CIRCUMVENTION

The Client agrees not to:

Sell agarwood from inoculated trees outside declared channels
Underreport sale value

Any circumvention shall constitute a material breach of the Agreement.

10. TAXES

Each Party shall bear its own income taxes arising from its share of proceeds.

Withholding taxes, if applicable, shall comply with Philippine law.

11. NO MARKET GUARANTEE

The Service Provider:

Does not guarantee market access
Does not guarantee pricing
Is not responsible for buyer default

12. TERMINATION & SURVIVAL

Revenue share obligations shall:

Survive termination of the CIA
Apply to all harvests derived from inoculated trees during the agreed period

End of Schedule E

🔜 Optional Enhancements

I can also:

Create a Revenue Share Calculator (Excel)
Add Schedule F: Buyer Linkage & Offtake (optional)
Prepare a farmer-simplified revenue share explainer
Localize this for cooperative-based accounting

Just tell me what you’d like next.