Here’s a Joint Venture Agreement Template for an Agarwood Farming Project between Investors and Local Farmers.
JOINT VENTURE AGREEMENT
This Agreement is made on [Date]
BETWEEN:
- [Investor’s Name/Company], a corporation registered under the laws of [Country], with its principal place of business at [Address] (hereinafter referred to as “Investor”);
- [Local Farmer’s Name/Cooperative], an entity engaged in sustainable farming, with its principal place of business at [Address] (hereinafter referred to as “Farmer”);
Hereinafter collectively referred to as the “Parties” and individually as a “Party.”
1. Purpose of Agreement
The Parties agree to form a Joint Venture (JV) for the purpose of cultivating, processing, and marketing Agarwood (Aquilaria) products, including oud oil, wood chips, and incense for domestic and international markets.
2. Structure of the Joint Venture
- The Joint Venture will be registered as [Legal Entity Name].
- The Investor provides funding, technology, and marketing.
- The Farmer provides land, labor, and maintenance of agarwood trees.
- The JV will operate for an initial term of [X] years, subject to renewal.
3. Capital Contributions
Each Party shall contribute resources as follows:
| Party | Contribution | Estimated Value ($) |
|---|---|---|
| Investor | Capital for seedlings, inoculation, infrastructure | $X |
| Farmer | Land, labor, cultivation, harvesting | $X |
| Management Team | Technical expertise, training, and processing | $X |
Total Initial Investment: $[Total Amount]
4. Revenue Sharing & Profit Distribution
Net profits shall be distributed as follows:
| Party | Profit Share (%) |
|---|---|
| Investor | X% |
| Farmer | X% |
| Management Team | X% |
Profits will be calculated after deducting all operational costs, taxes, and reinvestment allocations.
5. Responsibilities of Each Party
Investor’s Responsibilities:
- Provide capital for infrastructure, seedlings, and inoculation.
- Facilitate international trade and marketing.
- Ensure compliance with CITES, DENR, and export regulations.
Farmer’s Responsibilities:
- Provide land for agarwood plantation.
- Carry out daily maintenance and cultivation.
- Implement sustainable and ethical harvesting practices.
Management Team’s Responsibilities:
- Oversee planting, inoculation, and harvesting.
- Conduct quality control and research on production efficiency.
- Manage product processing and sales.
6. Duration & Termination
- This Agreement is effective from [Start Date] and remains in force for [X] years.
- It may be terminated by mutual agreement or for the following reasons:
- Breach of contract by either Party.
- Failure to meet production or financial targets.
- Legal or regulatory restrictions affecting agarwood farming.
If terminated, assets shall be distributed as follows:
- Investor retains [Assets/Equipment].
- Farmer retains [Land & Remaining Crops].
- Any remaining profits are split according to agreed percentages.
7. Governing Law & Dispute Resolution
- This Agreement shall be governed by the laws of [Country].
- Any disputes shall first be resolved through mediation. If unresolved, disputes shall be settled by arbitration in [Location].
8. Confidentiality & Non-Compete Clause
- All financial and operational details of this JV are strictly confidential.
- The Farmer shall not enter into similar agreements with other investors for [X] years.
- The Investor shall not engage in competing ventures with other farmers in the same region.
9. Amendments & Signatures
This Agreement may only be modified by written consent of both Parties.
Signed on this [Date] at [Location].
For the Investor:
✍️ [Investor’s Name]
[Investor’s Designation]
[Company Name]
For the Farmer:
✍️ [Farmer’s Name]
[Farmer’s Title]
[Cooperative/Organization]
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