Replant, Replacement & Force-Majeure Policy

Last updated: 28 August 2025Effective date: 28 August 2025

1. Purpose

This Policy explains how Hazelbit SRL manages the lifecycle of hazelnut trees symbolized in Hazelbit Certificates and $HZTR NFTs, including rules for replanting, replacement, and force-majeure events that affect production. The aim is to ensure transparency and fairness to customers and NFT holders.

2. Scope

This Policy applies to:

• All hazelnut trees planted under Hazelbit programs.

• All $HZTR NFTs representing trees.

• All related Harvest Benefit rights.

3. Standard lifecycle of a hazelnut tree

Productive lifespan

approx. 30 years

Time to yield

3–5 years from planting

Yield variation

depends on soil, irrigation, weather, and agricultural practices

4. Replant policy (tree mortality, disease, or damage)

Tree mortality (individual cases):

If a tree dies naturally or due to disease, Hazelbit will replant a replacement tree of similar age (where feasible) or assign the NFT holder to another comparable tree in the same plantation.

Yield reduction (disease or storm damage):

If yield is reduced but the tree survives, Hazelbit will continue cultivation; no compensation is due for seasonal variation.

Replacement limits:

• Replacement does not extend the original 30-year NFT term.

• Hazelbit may substitute the tree with another from the same plantation cluster.

5. Force-majeure events

Force-majeure includes events beyond Hazelbit's reasonable control, such as:

Natural disasters

floods, earthquakes, wildfires, droughts, pests, epidemics

Political events

armed conflict, political instability, sanctions, government seizure

Supply chain disruptions

fertilizers, energy shortages

Pandemic-related

restrictions

Consequences:

• Hazelbit will take reasonable agronomic measures to mitigate losses.

• If entire sections of plantations are destroyed, Hazelbit may replant new trees and reassign NFTs.

• If replanting is impossible (e.g., permanent land loss), Hazelbit may terminate affected NFTs with notice.

6. Harvest Benefit under force-majeure

• Harvest Benefit (40% share of yield) may be reduced or suspended in years when yields are severely impacted by force-majeure.

• No monetary compensation is guaranteed in such cases.

• Where possible, Hazelbit may offer alternative credits or future-year adjustments, at its discretion.

7. Termination due to catastrophic loss

If Hazelbit determines that continuation of the project is impossible (e.g., plantation permanently destroyed):

• Hazelbit will notify NFT holders and certificate sponsors.

• Hazelbit will provide a summary of losses and efforts taken.

• NFT rights will terminate automatically, without refund, unless otherwise required by law.

8. Insurance & risk sharing

• Hazelbit may maintain agricultural insurance (fire, pest, storm) where economically feasible.

• Insurance proceeds, if any, will be applied to replanting and project continuity.

• NFT holders are not direct beneficiaries of insurance policies.

9. Disclaimers

• Agricultural projects inherently involve biological and climate risks.

• Hazelbit does not guarantee uninterrupted yields or continuity in all circumstances.

• This Policy is intended to demonstrate good faith risk management, not a contractual guarantee of replacement or harvest.

10. Contact

Hazelbit SRL

Str. Fântânilor 43, Bl. B14, Ap. B39, Iași, Romania

Email:info@hazelbit.ro