Crown MycoResin Biotech, Inc. (CMBI)
(Applicable to Contract Inoculation Agreement – Revenue Share Model)
1. Purpose
This Schedule defines the methodology for computing gross revenue, costs, and net proceeds, and establishes the revenue-sharing structure between:
- CMBI (Service Provider / Technology Partner)
- Client (Tree Owner / Plantation Partner)
2. Definitions
- Harvest Volume (HV): Total weight (kg) of harvested agarwood chips/blocks
- Grade Classification (GC): Quality category (e.g., Low, Medium, High, Oil-Grade)
- Selling Price (SP): Market price per kg based on grade (₱/kg)
- Gross Revenue (GR): Total sales value before deductions
- Allowable Costs (AC): Approved deductions prior to sharing
- Net Proceeds (NP): Amount subject to revenue sharing
3. Gross Revenue Computation
[
\textbf{GR = HV × SP}
]
Example:
- Harvest Volume: 120 kg
- Average Selling Price: ₱18,000/kg
GR = ₱2,160,000
4. Allowable Cost Deductions (AC)
The following may be deducted prior to revenue sharing (if agreed):
| Cost Component | Description |
|---|---|
| Harvesting Labor | Cutting, splitting, sorting |
| Transport & Logistics | Farm to buyer/export point |
| Processing | Cleaning, grading, drying |
| Compliance Costs | Permits, documentation |
| Marketing / Brokerage | Buyer linkage fees (if applicable) |
[
\textbf{Total AC = Sum of all approved costs}
]
Example:
Total AC = ₱260,000
5. Net Proceeds Computation
[
\textbf{NP = GR – AC}
]
NP = ₱2,160,000 – ₱260,000 = ₱1,900,000
6. Revenue Share Structure
Standard Sharing Model (Recommended)
| Party | Share (%) |
|---|---|
| Client (Tree Owner) | 60–70% |
| CMBI (Technology & Service Provider) | 30–40% |
(Exact ratio subject to contract terms, tree condition, and service scope.)
7. Revenue Distribution Formula
[
\textbf{Client Share = NP × Client %}
]
[
\textbf{CMBI Share = NP × CMBI %}
]
Example (65% Client / 35% CMBI)
- Client Share:
₱1,900,000 × 65% = ₱1,235,000 - CMBI Share:
₱1,900,000 × 35% = ₱665,000
8. Optional Tiered Incentive Model
To encourage higher resin quality:
| Grade Level | Bonus Adjustment |
|---|---|
| Low Grade | Base % |
| Medium Grade | +2% to Client |
| High Grade | +3% to Client |
| Oil Grade | +5% to Client |
9. Multi-Tree / Plantation Computation
For multiple trees:
[
\textbf{Total GR = Σ (HV per tree × SP per grade)}
]
Enables:
- Batch computation
- Per-tree performance tracking
- Yield benchmarking
10. Payment Terms
- Revenue distribution within 7–15 days after buyer payment
- Payments via:
- Bank transfer
- Cash (documented)
- Supported by:
- Sales invoice
- Harvest report
- Weight & grading sheet
11. Transparency & Documentation
CMBI shall provide:
- Harvest yield report
- Grade classification breakdown
- Buyer price confirmation
- Cost deduction summary
- Final computation sheet
12. Special Provisions
- If CMBI provides full-service model (inoculation + harvest + buyer linkage) → higher share bracket may apply
- If Client shoulders all logistics → higher client share
- Premium export contracts may override baseline pricing
Summary Statement
This Revenue Share Model ensures fair, transparent, and performance-based profit distribution, aligning the interests of both CMBI and the plantation partner while maximizing agarwood value from tree to market.