Adopt-An-agarwood™ | Value Sharing | Pricing & Payment | Sharing Calculation | Risk Disclosure
VALUE-SHARING CALCULATION METHOD (ILLUSTRATIVE)
This Annex forms part of the Adopt-An-Agarwood™ Value-Sharing Agreement. Figures and scenarios below are illustrative only and do not constitute guarantees, projections, or promises of return.
1. Purpose of Annex
This Annex explains how value-sharing may be calculated upon the compliant harvest of plantation-grown Aquilaria malaccensis, using transparent, quality-driven, and outcome-based principles.
The objective is to:
- Clarify the logic of value sharing
- Set expectations on process, not outcomes
- Avoid any representation of guaranteed yield or income
2. Key Variables Affecting Value
Value realized from agarwood depends on multiple biological and market factors, including:
- Number of Adopted Trees
- Resin Formation Success
- Resin Grade / Quality
- Harvest Method
- Product Pathway
- Market Conditions
- Compliance Costs
3. Illustrative Resin Grade Bands (Example Only)
| Grade Band | Typical Description | Market Sensitivity |
|---|---|---|
| Grade C | Light resin, young formation | Entry / local use |
| Grade B | Moderate resin, good aroma | Mid-market |
| Grade A | Dense, mature resin | Premium |
| Grade AA | Exceptional resin & oil yield | Ultra-premium |
Actual grading is conducted at harvest and may differ from these illustrative bands.
4. Illustrative Value-Sharing Formula
Step 1: Determine Gross Harvest Value
Gross Harvest Value = (Usable Agarwood Quantity) × (Prevailing Market Price)
Step 2: Deduct Direct Costs
Direct Costs = Harvest labor + Processing & distillation + Quality testing + Compliance + Logistics
Net Realized Value = Gross Harvest Value – Direct Costs
Step 3: Allocate Steward Share
Steward Allocation = Net Realized Value × Steward Tree Proportion in Block
5. Illustrative Tier Examples (Non-Binding)
| Adoption Tier | Number of Trees | Steward Tree Proportion in Block | Illustrative Share of Net Value |
|---|---|---|---|
| Resin Guardian | 1 | 0.5% | PHP 5,000 (example) |
| Oud Legacy Keeper | 10 | 5% | PHP 50,000 (example) |
| Agarwood Heritage Steward | 25 | 12.5% | PHP 125,000 (example) |
| Agarwood Heritage Steward | 50 | 25% | PHP 250,000 (example) |
| Agarwood Heritage Steward | 100+ | 50%+ | Custom allocation |
Values are illustrative and dependent on actual harvest outcomes, resin grade, and market conditions.
6. Product Allocation Alternative
Instead of monetary value, the Steward may elect:
- Agarwood chips equivalent to allocated value
- Oud oil micro-batch (volume dependent on yield)
- Finished incense or derivative products
Final form depends on resin characteristics, regulatory approvals, and product availability.
7. Reinvestment Credit Option
Steward may convert allocated value into:
- Credits toward new agarwood adoptions
- Expansion into additional plantation blocks
Reinvestment credits are applied at prevailing program rates.
8. Important Disclaimers
- No minimum yield, price, or timeline is guaranteed
- Biological outcomes vary per tree and per cycle
- Market prices fluctuate significantly
- Value sharing occurs only if and when compliant harvest is realized
9. Transparency & Reporting
Operator shall provide:
- Harvest summary
- Grading outcome
- Cost breakdown (high-level)
- Steward allocation statement