Section 1: The NCX Market Terms - landowners.ncx.com

1 FAQs for Updated 07/27/2022 Table of ContentsSection 1: The NCX MarketPages 1-6 OverviewPages 1-2 EligibilityPages 2-4 Program TermsPages 4-6 Section 2:Seller Offers and PricingPages 6-11 Selling ProcessPages 6-11 PaymentPage 11 Section 3: Program AccountingPages 11-14 Creditable CarbonPages 11-13 CertificationPages 13-14 Section 4:MethodologyPages 14-17 AdditionalityPages 14-15 PermanencePage 16 LeakagePages 16-17 Section 1: The NCX is the Natural Capital Exchange?NCX is a carbon marketplace that connects corporations to the landowners , habitats, andcommunities they impact through our carbon marketplace. NCX pays landowners to defertimber harvesting activity for a one-year term. This delayed harvesting activity results inadditional carbon stored on the landscape. Companies then pay for this additional carbonin the form of credits, primarily to offset emissions and/or reach sustainability Forest Carbon Program 2022 Frequently Asked Questions for July buys these carbon credits?

2 Typical buyers are companies committed to investing in local communities, channelpartners seeking quality offsets, and multinationals pursuing net-zero goals. NCX is also abuyer of NCX is the time commitment for NCX?Participating in an NCX cycle requires a commitment of one year. Participants may chooseto continue participation in subsequent years under new can request an assessment?Any timberland or woodland owner (or legally authorized manager) in the contiguous USwho has (1) the right to harvest timber on the property and (2) could reasonably accept atimber sale offer in the upcoming year, would be eligible to participate by requesting many acres do I need to own in order to participate?There is no acreage minimum to participate in NCX. However, a landowner will need tohave at least 5 Harvest Deferral Credits to be able to submit an offer to participate in agiven NCX cycle.

3 For reference, a 5-acre property with merchantable timber and strongmarkets has been able to meet this minimum my property need to be SFI or FSC certified in order to participate?No, certification of this type is not required for I need to enroll my entire property?Yes. In order to ensure the validity of NCX carbon credits and reduce leakage, a seller isrequired to enroll all of the property they own or manage across the contiguous UnitedStates. As noted in the Seller Agreement, the Assessment Area in which NCX conducts itsassessment over must satisfy one of the following two conditions:it is either (i) alltimberland property within the contiguous United States that is owned by a particularowner or set of beneficial owners; or (ii) all timberland property within the contiguousUnited States over which a single property manager has been given legal managingauthority on behalf of a particular owner or set of beneficial Forest Carbon Program 2022 Frequently Asked Questions for July 20222 This requirement doesn't mean you need to defer harvesting across the entire ownership,but NCX needs to be able to monitor harvest activity across the entire ownership toensure that you are meeting your deferral commitment and not increasing harvesting onun-enrolled parcels.

4 This includes parcels that have been harvested recently and parcelsthat are up for property has forests of different ages. Do I need to enroll portions of the propertyindividually based on their age?No. The NCX program treats all of your stands as a single participating property. Propertyresiding under a single ownership structure should be enrolled as a single NCX it okay if my property crosses state lines?Yes, you are required to enroll all of your landholdings even if the property crosses statelines. Your carbon will be assessed in the same manner as that of a property that iscontained in one single a landowner is the sole member of two different LLCs, do they both need to beenrolled in NCX for that person to be eligible to participate?Yes, the properties under the LLCs would need to be mapped out in the same account,due to an identical ownership structure. The requirement for NCX participants to enroll allproperty under their ownership or management is designed to reduce the potential forinternal activity-shifting leakage (View the Leakage Section below).

5 I have to own my property outright in order to participate?To sign the NCX Seller Agreement, you will need to be the legal owner of the land or avalid legal representative of the owner(s). Property held in common by a family or severalindividuals is therefore eligible for the program, as long as the person who signs theagreement is a valid legal I participate if my property is already under a carbon or conservation easement?It depends. A landowner can only enroll in NCX along with an easement if the easementdoesn't prohibit harvesting activity. If it does explicitly prohibit harvesting, these acresaren t eligible for the program and should be excluded from what s identified on ourinteractive platform. NCX pays for the deferral of predicted harvesting activity on yourproperty, so if your property is under an easement that already restricts harvesting activity,then the NCX framework will not only a portion of your property is under a carbon or conservation easement, you shouldexclude that portion when submitting property holdings and notify the LandownerNCX Forest Carbon Program 2022 Frequently Asked Questions for July 20223 Success team so that appropriate measures can be taken to record this omission.

6 You cancontact our team at if you are unsure about eligibility regarding anexisting or proposed does the display imagery of my property look outdated in my landowner account?During the assessment, NCX uses a combination of recent remotely sensed data and fieldmeasurements to assess the carbon on your property, ensuring that our carbon estimatesare up to date. In contrast, the imagery on is sourced from the companyMapboxand provided solely to facilitate the drawing of property boundaries. In some cases,Mapbox imagery will be less recent than the imagery sources NCX uses to calculateeligible carbon. If you are having difficulty mapping out your property boundaries, pleaseemail us can I find a copy of the Seller Agreement?If you are going through the assessment process, an example Seller Agreement is linkedin your NCX landowner account under Example NCX Seller Agreement. We ve also linkedthe document here:Example NCX Seller through this documentfor more information on program Terms and conditions, eligibility, and NCX be visiting my property?

7 Possibly. A subset of landowners with accepted bids will be selected for groundmeasurement for additional verification. By submitting an offer and signing the NCX SellerAgreement, you are granting NCX and its affiliates the right to access the property forcruising. These visits are coordinated and paid for by NCX, and will not be undertakenwithout providing notice to the landowner in advance, however, cruising may impactrecreational activities like hunting. While NCX will not prevent you from hunting duringthis window, we do require your property to be open and accessible to professionalforesters. If you feel that it would be unsafe for yourself or the foresters, we recommenddelaying participation until a time when the property can be safely assessedCruising occurs at the end of the Performance Period and will commence about 60 daysbefore will you do with my data?NCX collects information about you and your property only to the extent it s needed toadminister the NCX program.

8 Data provided by NCX participants, including their propertyNCX Forest Carbon Program 2022 Frequently Asked Questions for July 20224boundaries, will not be shared with third parties except for in aggregate and/oranonymized for legitimate purposes of academic research, program certification, or will NCX confirm I own the property enrolled?At the start of each Performance Period, a subset of landowners with accepted bids willbe selected to provide proof of property ownership. The Landowner Success Team willnotify you via email if you re selected to participate in this there any penalties for noncompliance?Yes. As a starting point, payments are only made to sellers for the quantity of carbon theysuccessfully deliver. Failure to deliver the agreed amount of carbon will result indiminished payments to landowners for the credits that are delivered. In severe cases,sanctions such as a prohibition on participating in future NCX cycles is the contract automatically renew every year?

9 No. landowners will need to re-enroll after the end of the 1-year harvest deferral period ifthey are interested in doing so. This is permissible and encouraged. landowners will beasked to confirm their property information is still accurate and then request an updatedEligibility happens if a portion or all of the land under agreement changes ownershipduring the year?While the NCX Seller Agreement does not constitute a legal encumbrance on theproperty, and therefore does not strictly run with the land , the original owner is stillresponsible for delivering the Harvest Deferral Credits that were accepted at the start ofthe Performance Period. If you plan to sell your property during the one-year PerformancePeriod, you should disclose your participation in NCX with the new NCX dictate which acres to cut, how to cut them, or where to allocate harvests?No, accounting is done in aggregate over an entire participating property.

10 Allocation ofharvests is completely at the discretion of the landowner, as long as property-leveldeferral commitments are does NCX address timber maintenance, such as thinning and controlled burns?The NCX program makes no prescriptions about specific management practices; it solelyobligates the seller to retain a certain amount of standing timber on the property. While aNCX Forest Carbon Program 2022 Frequently Asked Questions for July 20225landowner is free to engage in thinning or controlled burns on the property, these factorsshould be considered when submitting an landowners are conducting timber stand improvements, removing woody invasivespecies greater than 2 diameter, and/or thinning, those volume reductions should beaccounted for prior to submitting an offer. Please refer to your Eligibility Report does NCX make money from NCX?NCX charges a fee to buyers so that this program remains free for 2: Seller Offers and PricingSelling is allowed to sign the NCX Seller Agreement?