2018-11-15T00:18:25-06:00 2017-12-31 912011386 JACOBSON JARVIS & CO PLLC 200 FIRST AVE WEST SUITE 200 SEATTLE WA 981194219 990 2017-01-01 943112461 FORTERRA NW FORT 2062925907 901 FIFTH AVENUE NO 2200 SEATTLE WA 98164 MICHELLE CONNOR PRESIDENT/CEO 2062925907 2018-11-13 1 HOWARD DONKIN CPA P00147726 2066288990 2018-11-12 209.210.254.4 2018-11-13 16:26:59 PS P CEBD717F4B3351FF1B977296098DBAF35E2BFDE6 2EA2D6287BECE4F4B333F6765CEEC35E069EE39A 2017 2018-06-14 16:35:46Z MICHELLE CONNOR 901 FIFTH AVENUE NO 2200 SEATTLE WA 98164 16653382 0 X WWW.FORTERRA.ORG X 1994 WA PROTECT, ENHANCE AND STEWARD OUR REGION'S COMMUNITIES AND LANDSCAPES. 25 24 55 2487 0 0 7576577 12570309 293286 837607 -149777 318482 -41976 -104273 7678110 13622125 993676 3115503 0 0 3444922 3571224 26910 0 867161 3932486 2800934 8397994 9487661 -719884 4134464 39452103 41187301 11595289 9169584 27856814 32017717 X TO ACT WITH IMMEDIACY TO PROTECT, ENHANCE AND STEWARD OUR REGION'S MOST PRECIOUS RESOURCES - ITS COMMUNITIES AND ITS LANDSCAPES. 0 0 4886101 2928573 527692 CONSERVATION: FORTERRA IS MAKING SURE THIS PLACE WE ALL LIVE STAYS A PLACE WE ALL LOVE. WE DO THAT BY SECURING AND CARING FOR KEYSTONE LANDS - PLACES WITH A VITAL ROLE IN OUR REGION'S LONG-RUN LIVABILITY, SUSTAINABILITY AND EQUITY. THESE INCLUDE WILDLANDS, WORKING FARMS AND FORESTS, AS WELL AS PLACES IN THE CITY FOR AFFORDABLE HOUSING, PARKS AND THE ARTS. OVER THE PAST 25 YEARS, FORTERRA HAS COMPLETED 400+ TRANSACTIONS AND CONSERVED 250,000+ ACRES. IN 2013, FORTERRA LED A COALITION TO CONSERVE THE 50,272-ACRE TEANAWAY COMMUNITY FOREST IN THE LARGEST CONSERVATION TRANSACTION IN WASHINGTON IN 45 YEARS. IN OTHER PROJECTS, WE HAVE SINCE 2015 CONSERVED CRITICAL SALMON HABITAT AROUND THE STATE, SAVED TWO FARMS, ACQUIRED A GOLF COURSE THAT WILL BECOME A MAJOR URBAN PARK, AND STARTED A NEW PARTNERSHIP FOCUSED ON URBAN LAND FOR AFFORDABLE HOUSING. WITH OUR CORRIDORS FOR SUSTAINABILITY INITIATIVE, FORTERRA IS INVESTING IN THE ENHANCEMENT AND SUSTAINABILITY OF THE LANDS AND COMMUNITIES ALONG OUR GREAT NATURAL CORRIDORS INCLUDING THE GREAT NORTHERN CORRIDOR ALONG HIGHWAY 2 AND THE YAKIMA/SWIFTWATER RIVER CORRIDOR IN EASTERN WASHINGTON, WHICH ENCOMPASSES THE TEANAWAY RIVER VALLEY, AMONG OTHER ATTRACTIONS. THROUGH OUR NETWORK OF REGIONAL OFFICES, FORTERRA BRINGS A UNIQUE ABILITY TO CONVENE DISPARATE STAKEHOLDERS, LEVERAGE DIVERSE FUNDING SOURCES AND FIND SOLUTIONS THAT BENEFIT NOT ONLY OUR NATURAL ENVIRONMENT BUT OUR COMMUNITIES AND ECONOMY AS WELL. 1365234 31155 201026 STEWARDSHIP: SECURING KEYSTONE LAND IS ONLY THE START. IT MUST ALSO BE CARED FOR. FORTERRA LOOKS AFTER NEARLY 15,000 ACRES OF FEE AND CONSERVATION EASEMENT PROPERTIES IN 13 WASHINGTON COUNTIES. WORKING WITH LOCAL, STATE, FEDERAL, AND TRIBAL PARTNERS WE IMPLEMENTED 5 NEW STEWARDSHIP MANAGEMENT PLANS TO IMPROVE THE ECOLOGICAL AND SOCIETAL VALUE OF OUR LANDS. WE ALSO ACTIVELY WORK TO RESTORE URBAN NATURAL AREAS THROUGH OUR GREEN CITIES PROGRAM. LAUNCHED IN 2004 WITH THE GREEN SEATTLE PARTNERSHIP, THE PROGRAM HAS SINCE GROWN TO INCLUDE CITIES THROUGHOUT WESTERN WASHINGTON. THESE PARTNERSHIPS BRING PEOPLE TOGETHER ON VOLUNTEER PROJECTS AT PARKS ALL OVER PUGET SOUND TO REMOVE INVASIVE SPECIES, REPAIR TRAILS, RESTORE STREAM-BANKS AND MORE. OVER THE LAST YEAR, VOLUNTEERS COMPLETED MORE THAN 1,000 PROJECTS AND LOGGED OVER 115,000 VOLUNTEER HOURS IN THE PARTNERSHIP CITIES OF SEATTLE, TACOMA, EVERETT, REDMOND, KIRKLAND, PUYALLUP, SNOQUALMIE, TUKWILA AND KENT. THROUGH OUR STEWARDSHIP IN ACTION PROGRAM, FORTERRA WORKS ON A WATERSHED SCALE WITH PUBLIC AND PRIVATE PARTNERS ON PROJECTS SUCH AS THE CEDAR RIVER WATERSHED, WHERE WE PARTNER WITH SEATTLE PUBLIC UTILITIES, KING COUNTY AND PRIVATE LANDOWNERS ALONG THE RIVER. WE ARE NOW WORKING TO REPLICATE THIS SUCCESSFUL MODEL ON THE GREEN-DUWAMISH RIVER. COMMUNITY-BASED STEWARDSHIP AND RESTORATION WORK NOT ONLY GETS THIS JOB DONE BUT INSTILLS AN ETHIC OF STEWARDSHIP THAT PAYS FAR INTO THE FUTURE, RESULTING IN HEALTHY HABITATS AND SUSTAINABLE COMMUNITIES. FURTHER INSTILLING COMMUNITY STEWARDSHIP VALUES FORTERRA WORKED WITH 6 DIFFERENT SCHOOL SYSTEMS TO BRING STUDENTS OUT OF THE CLASSROOM AND ONTO OUR LANDS FOR FIELD-BASED LEARNING EXPERIENCES. 431127 155775 100513 POLICY: FORTERRA CONTINUES TO BE A LEADER IN THE DESIGN AND IMPLEMENTATION OF MARKET-BASED GROWTH MANAGEMENT AND CONSERVATION TOOLS. TO DATE, FORTERRA HAS BEEN INVOLVED IN THE DESIGN, ADOPTION, AND IMPLEMENTATION OF TRANSFER OF DEVELOPMENT RIGHTS (TDR) PROGRAMS AT THREE DIFFERENT LEVELS: 10 CITIES, 4 COUNTIES, AND 1 REGIONAL PROGRAM. SINCE 2009 THESE PROGRAMS HAVE TRANSFERRED DEVELOPMENT OFF MORE THAN 20,000 ACRES OF FARMS AND WORKING FORESTS, MOVING IT THROUGH INCENTIVES INTO OUR REGION'S CITIES. DEMONSTRATING USE OF THE TOOL, FORTERRA SOLD CREDITS WE OWN INTO A SNOHOMISH COUNTY PROJECT. TO SUPPORT GROWTH IN CITIES USING TDR, FORTERRA LED THE CREATION OF THE LANDSCAPE CONSERVATION AND LOCAL INFRASTRUCTURE PROGRAM (LCLIP), WHICH GIVES CITIES A FINANCIAL INCENTIVE TO PROTECT RESOURCE LANDS AND MAKE INFRASTRUCTURE INVESTMENTS. THE USE OF THIS PROGRAM IN SEATTLE WILL GENERATE OVER $27M IN NEW FUNDING FOR PUBLIC IMPROVEMENTS. THIS FORTERRA-DESIGNED TOOL WAS RECOGNIZED BY A STATE AWARD IN 2015. IN 2016 FORTERRA PURSUED LCLIP USE IN AN ADDITIONAL 6 CITIES AROUND THE REGION.AMONG OTHER PLACES, FORTERRA WORKS IN SOUTH KING COUNTY TO ENGAGE CULTURALLY DIVERSE CONSTITUENTS IN PLANNING AND POLICY ISSUES RELATED TO IMPROVING QUALITY OF LIFE FOR RESIDENTS IN TUKWILA, FEDERAL WAY, SEATAC AND KENT. FOCUS AREAS INCLUDE PUBLIC SAFETY, HOUSING, FOOD ACCESS, AND URBAN GARDENING. FORTERRA RECENTLY PARTNERED WITH THE CITY OF TUKWILA AND OTHERS TO DESIGN A COMMUNITY LIAISON PROGRAM IN 2012, WHICH WAS LAUNCHED IN 2013 THROUGH EQUITY AND DIVERSITY TRAININGS, COMMUNITY PLANNING TRAININGS, AND A PROJECT FOCUSED ON BRINGING NEW VOICES TO THE CITY'S COMPREHENSIVE PLAN UPDATE PROCESS. THIS PROGRAM WAS RECOGNIZED WITH THE CITIZEN INVOLVEMENT AWARD BY THE 2014 AMERICAN PLANNING ASSOCIATION AT THE WASHINGTON CHAPTER CONFERENCE. IN 2016, SIX COMMUNITY CONNECTORS REPRESENTING 4 DIVERSE COMMUNITIES PARTICIPATED IN A SERIES OF 3 LEADERSHIP DEVELOPMENT AND CITY TRAININGS, WORKING TO DISSEMINATE INFORMATION REGARDING CITY COUNCIL MEETINGS AND DISASTER PREPAREDNESS. ADDITIONALLY, FORTERRA WORKED WITH THE CITY OF SEATAC TO ENGAGE OVER 100 COMMUNITY MEMBERS IN EXPANDING URBAN AGRICULTURE OPPORTUNITIES, WHICH RESULTED IN THE CREATION OF THE CITY'S FIRST COMMUNITY GARDEN. FORTERRA'S EVERGREEN CARBON CAPTURE (ECC) PROGRAM PROVIDES LOCAL COMPANIES AND ORGANIZATIONS THE OPPORTUNITY TO INVEST IN LOCAL TREE PLANTING PROJECTS TO MITIGATE THEIR CARBON EMISSIONS. THE PROGRAM WAS FIRST PILOTED IN 2010 WITH THE SUPPORT OF PEARL JAM, AND FORMALLY LAUNCHED IN 2012. SINCE PILOTING THE PROGRAM IN 2010, ECC HAS PLANTED OVER 33,000 TREES TO MITIGATE 165,000 TONS OF CARBON. TREES ARE PLANTED ON FORTERRA STEWARDSHIP LANDS AS WELL AS ON PROTECTED PRIVATE AND PUBLIC LAND ACTIVELY MANAGED BY PARTNER ORGANIZATIONS AND AGENCIES. TO DATE, WE HAVE PLANTED TREES AT OVER 33 LOCATIONS AND WORKED WITH 36 COMPANIES. FORTERRA LEADS A BROAD COALITION FROM ACROSS THE STATE THAT IS WORKING TO CATALYZE A MARKET FOR THE SUSTAINABLE PRODUCTION AND USE OF ENGINEERED MASS TIMBER PRODUCTS LIKE CROSS LAMINATED TIMBER, WHICH OFFERS AN OPPORTUNITY TO HOUSE WASHINGTON'S GROWING URBAN POPULATION AND BUSINESSES IN BUILDINGS CONSTRUCTED FROM SUSTAINABLE, LOCALLY PRODUCED MATERIALS. MASS TIMBER IS A PROMISING BUILDING SYSTEM THAT OFFERS A VARIETY OF BENEFITS IN TERMS OF ITS ABILITY TO LOWER THE COSTS OF CONSTRUCTION IN OUR CITIES, SUPPORT RURAL ECONOMIC DEVELOPMENT, AND REDUCE CARBON EMISSIONS ASSOCIATED WITH CLIMATE CHANGE WHEN SUSTAINABLY SOURCED. IN 2016, FORTERRA SECURED A $250,000 GRANT FROM THE U.S. FOREST SERVICE TO CONVENE A STATEWIDE COALITION. LED BY FORTERRA, THE COALITION SUCCESSFULLY ADVOCATED AND SECURED ALMOST $6 MILLION FROM THE WASHINGTON STATE LEGISLATURE TO BUILD CLT CLASSROOMS AS DEMONSTRATION PROJECTS, FOR THE DEPARTMENT OF COMMERCE TO PROVIDE TECHNICAL ASSISTANCE TO PRODUCTION FACILITIES, AND FOR WASHINGTON STATE UNIVERSITY TO PROVIDE RESEARCH TO THE LEGISLATURE ABOUT PERFORMANCE TEST RESULTS AND BUILDING CODE AMENDMENTS. 502981 8376 OUTREACH AND PUBLIC EDUCATION: FORTERRA PROVIDES EDUCATIONAL INFORMATION ON CONSERVATION TO THE PUBLIC, PRESENTS ITS MISSION AND VISSION TO COMMUNITY LEADERS AND ORGANIZATIONS, AND PARTICIPATES IN PUBLIC FORUMS ABOUT CONSERVATION. 502981 8376 7185443 1 1 0 1 0 0 1 0 1 1 1 0 0 1 1 0 0 1 0 0 0 0 0 0 1 0 0 1 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 1 0 0 0 1 69 0 1 55 1 0 0 0 0 0 0 0 0 0 0 X 25 24 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 0 0 WA X KRISTEN KARABENSH 2069056918 901 FIFTH AVENUE SUITE 2200 SEATTLE WA 98164 TERRY MUTTER CHAIR 2.00 X X 0 0 0 DAN NORDSTROM VICE CHAIR 2.00 X X 0 0 0 DENNIS MADSEN TREASURER 2.00 X X 0 0 0 RUTH TRUE SECRETARY 2.00 X X 0 0 0 ERIC CAMPBELL BOARD MEMBER 2.00 X 0 0 0 PAT CALLAHAN BOARD MEMBER 2.00 X 0 0 0 TIM CEIS BOARD MEMBER 2.00 X 0 0 0 GIGI COE BOARD MEMBER 2.00 X 0 0 0 MICHAEL FORD BOARD MEMBER 2.00 X 0 0 0 LISA GRAUMLICH BOARD MEMBER 2.00 X 0 0 0 JIM GREENFIELD BOARD MEMBER 2.00 X 0 0 0 BERT GREGORY BOARD MEMBER 2.00 X 0 0 0 LARRY HOOD BOARD MEMBER 2.00 X 0 0 0 GREG JOHNSON BOARD MEMBER 2.00 X 0 0 0 LINDA LARSON BOARD MEMBER 2.00 X 0 0 0 ORIN LEVINE BOARD MEMBER 2.00 X 0 0 0 CHRIS LOYD BOARD MEMBER 2.00 X 0 0 0 RYAN MULLENIX BOARD MEMBER 2.00 X 0 0 0 LINDA NEUNZIG BOARD MEMBER 2.00 X 0 0 0 TOM O'KEEFE BOARD MEMBER 2.00 X 0 0 0 DE'SEAN QUINN BOARD MEMBER 2.00 X 0 0 0 HEATHER REDMAN BOARD MEMBER 2.00 X 0 0 0 BILL TAYLOR BOARD MEMBER 2.00 X 0 0 0 AARON TOSO BOARD MEMBER 2.00 X 0 0 0 GENE DUVERNOY PRESIDENT AND CEO 45.00 X X 161164 0 7251 MICHELLE CONNOR EVP STRATEGIC ENTERPRISES 45.00 X 179562 0 7242 MICHAEL BENEKE VP OF COMMUNICATIONS 45.00 X 107022 0 10343 VICTORIA TAYLOR EVP AND COO 45.00 X 154383 0 8190 FRED SWENSON VP OF POLICY AND PROGRAMMING INNOVATION 45.00 X 104414 0 10167 706545 0 43193 5 0 1 0 0 663059 2776350 9130900 518812 12570309 PROJECT REVENUE 531390 837607 837607 837607 218482 218482 24681 0 24681 24681 24681 3000000 2900000 100000 100000 100000 0 663059 131257 -131257 -131257 MISCELLANEOUS 900099 2303 2303 2303 13622125 837607 0 214209 3115503 3115503 362429 223022 132670 6737 2650097 1402550 808145 439402 85299 45066 27960 12273 225545 112249 69704 43592 247854 126747 83127 37980 198701 198569 132 32770 18746 7930 6094 54000 54000 322846 203847 36418 82581 14947 3773 540 10634 169638 80154 28245 61239 52832 18930 2674 31228 370470 256025 109400 5045 103475 71396 15623 16456 73951 28833 3201 41917 496081 496081 90300 50328 25437 14535 69125 40377 16777 11971 STEWARDSHIP MATERIALS 409679 408914 765 ACQUISITION EXPENSES 206796 192933 13863 BUSINESS TAXES 78134 75455 2645 34 57189 15945 10429 30815 9487661 7185443 1435057 867161 X 769575 1786839 3488509 4605831 916512 1564146 67091 215840 141458 2329158 179143 201684 18472762 897460 17359255 17575302 3269011 3452952 132352 598340 13129197 8857209 39452103 41187301 751636 554841 135535 119689 10708118 8495054 11595289 9169584 X 23221186 23414239 3616545 7584395 1019083 1019083 27856814 32017717 39452103 41187301 4134464 26439 0 X X 0 1 X 1 0 X 6791798 5045708 4336509 7576577 12570309 36320901 6791798 5045708 4336509 7576577 12570309 36320901 2993970 33326931 89979 143628 139346 116427 243163 732543 4331 633 863 1656 2303 9786 37063230 2799900 0.89920 0.92210 X 54000 54000 9433661 9487661 624383 156096 0 0 466344 456126 569900 624383 2116753 3175130 67102 66365 64500 54000 251967 116586 114032 142475 156096 529189 793784 43 43 PART II-A THROUGHOUT THE YEAR STAFF AND CONTRACT LOBBYISTS MET WITH LOCAL, STATE AND FEDERAL ELECTED OFFICIALS AND AGENCIES TO ADVANCE VARIOUS CONSERVATION AND SMART GROWTH INITIATIVES. X X X X 96 7960.00 1 1 1100.00 5500 1 12247 108651 59052 61846 0 820172 26420 39132 807460 837446 23489 40763 820172 882123 2000 -5914 40763 837446 826236 78646 -22759 882123 859195 5635 2089 40683 826236 0.00000 1.00000 0.00000 0 0 17440128 17440128 216114 194633 21481 772676 684746 87930 43844 18081 25763 17575302 EARNEST MONEY DEPOSITS 3999 PROPERTY HELD FOR SALE 8853210 8857209 DEFERRED RENT LIABILITY 225087 SIGNATURE FUND LINE OF CREDIT 8269967 8495054 14033187 26439 253366 131257 411062 13622125 0 13622125 9872284 253366 131257 384623 9487661 0 9487661 PART II, LINE 9: EASEMENTS ARE CAPITALIZED AT A NOMINAL VALUE OF $1. ADDITIONAL COSTS OF ACQUIRING EASEMENTS ARE EXPENSED AS INCURRED. PART IV, LINE 1B: IN JULY 2015, FORTERRA ENTERED INTO A FISCAL SPONSORSHIP AGREEMENT WITH A COMMUNITY BASED GROUP IN SNOHOMISH COUNTY. FOR THE YEAR ENDED DECEMBER 31, 2017, TOTAL REVENUE OF $38,651 AND TOTAL EXPENSES OF $21,144 WERE REPORTED. IN 2017, FORTERRA ENTERED INTO A FISCAL SPONSORSHIP AGREEMENT WITH A COMMUNITY LAND TRUST BASED IN SEATTLE. FOR THE YEAR ENDED DECEMBER 31, 2017, TOTAL REVENUE OF $70,000 AND TOTAL EXPENSES OF $37,908 WERE REPORTED. PART V, LINE 4: FORTERRA'S ENDOWMENT CONSISTS OF TWO INDIVIDUAL FUNDS, BOTH ESTABLISHED FOR LONG-TERM LAND STEWARDSHIP. THE ENDOWMENT INCLUDES ONLY DONOR-RESTRICTED ENDOWMENT FUNDS. THERE ARE NO FUNDS DESIGNATED BY THE BOARD OF DIRECTORS TO FUNCTION AS ENDOWMENTS. AS REQUIRED BY GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP), NET ASSETS ASSOCIATED WITH ENDOWMENT FUNDS ARE CLASSIFIED AND REPORTED BASED ON THE EXISTENCE OR ABSENCE OF DONOR-IMPOSED RESTRICTIONS. FORTERRA HAS A POLICY OF APPROPRIATING FOR DISTRIBUTION EACH YEAR 4 PERCENT OF ITS ENDOWMENT FUND'S AVERAGE FAIR VALUE OVER THE PRIOR 12 QUARTERS THROUGH THE CALENDAR YEAR-END PRECEDING THE FISCAL YEAR IN WHICH THE DISTRIBUTION IS PLANNED. IN ESTABLISHING THIS POLICY, FORTERRA CONSIDERED THE LONG-TERM EXPECTED RETURN ON ITS ENDOWMENT. PART XI, LINE 2D - OTHER ADJUSTMENTS: DIRECT COST OF FUNDRAISING EVENTS 131,257. PART XII, LINE 2D - OTHER ADJUSTMENTS: DIRECT COST OF FUNDRAISING EVENTS 131,257. AWARDS BREAKFAST 629916 629916 131257 EVERGREEN CARBON CAPTURE 33143 33143 663059 663059 131257 131257 -131257 1 CLOUD RIDGE NATURALISTS 8297 OVERLAND RD WARD CO 80481 840919233 501(C)(3) 20000 SPONSORSHIP FOR EPIC JOURNEY BOOK PROJECT KITSAP COUNTY 614 DIVISION ST MS-34 PORT ORCHARD WA 98366 115 3075352 KITSAP FOREST AND BAY PROJECT CAMPAIGN WASHINGTON WILDLIFE AND RECREATION COALITION 1402 3RD AVE SUITE 714 SEATTLE WA 98101 911190821 501(C)(3) 5000 EVENT SPONSORSHIP UMOJA PEACE CENTER PO BOX 22328 SEATTLE WA 98122 463934123 501(C)(3) 5000 EVENT SPONSORSHIP 4 PART I, LINE 2: GRANT MONITORING ACTIVITIES WILL TYPICALLY OCCUR THROUGHOUT THE YEAR AND MAY TAKE VARIOUS FORMS DEPENDING ON WHAT IS DEEMED MOST APPROPRIATE FOR THE GRANT RECIPIENT. THIS MAY INCLUDE GRANT REPORTS, MEETING WITH GRANT RECIPIENTS AND SITE VISITS. X X X X X 0 0 0 1 0 0 0 0 0 GENE DUVERNOY PRESIDENT AND CEO 161164 0 0 0 0 0 6448 0 803 0 168415 0 0 0 MICHELLE CONNOR EVP STRATEGIC ENTERPRISES 179562 0 0 0 0 0 6375 0 867 0 186804 0 0 0 VICTORIA TAYLOR EVP AND COO 154383 0 0 0 0 0 6204 0 1986 0 162573 0 0 0 PART I, LINE 3 THE COMPENSATION COMMITTEE (A SUB-SET OF THE EXECUTIVE COMMITTEE OF THE BOARD, INCLUDING THE BOARD CHAIR) CONDUCTS AN ANNUAL PERFORMANCE EVALUATION OF THE CEO (AGAINST PRE-DETERMINED GOALS). CEO COMPENSATION IS A COMBINATION OF BASE PAY AND PERFORMANCE PAY RELATED TO THE COMPLETION OF THOSE ORGANIZATIONAL GOALS. FOLLOWING THE ANNUAL EVALUATION, THE SAME COMMITTEE EVALUATES AND RECOMMENDS PERCENTAGE OF PERFORMANCE PAY TO BE PAID, AS WELL AS COMPENSATION PACKAGE FOR THE FOLLOWING YEAR. EVERY 2-3 YEARS A SALARY SURVEY IS COMPILED AND USED FOR COMPARATIVE PURPOSES (USING REGIONAL DATA FROM LIKE-SIZED NON-PROFIT ENTITIES AS WELL AS COMPARABLE LAND TRUST/POLICY ORGANIZATIONS NATIONALLY). THE FULL BOARD REVIEWS AND APPROVES THE COMMITTEE'S RECOMMENDATION IN EXECUTIVE SESSION, AND A FORMAL MEMO FROM THE CHAIR IS PROVIDED FOR THE CEO'S PERSONNEL FILE. PART I, LINE 5 COMPENSATION FOR PERFORMANCE IS BASED ON SEVERAL ELEMENTS, ONE OF WHICH IS THE EXTENT TO WHICH CERTAIN PROGRAM AREAS COVER THEIR EXPENSES OR CREATE ADDITIONAL REVENUE TO GROW THE ORGANIZATION. AT THE BEGINNING OF THE PERIOD, EACH DEPARTMENT SETS 3-4 GOALS (INCLUDING REVENUE GOALS) WITH MANAGEMENT, AND DEPARTMENT MANAGEMENT SETS 3-6 INDIVIDUAL GOALS (WHICH MAY INCLUDE SECURING CONTRACTS OR CLOSING ON CONSERVATION PROPERTIES WHICH PROVIDE REVENUE). A CALCULATION IS MADE AT THE END OF THE PERIOD BASED ON MEETING GOALS (0-200% PER GOAL). AT VARIOUS LEVELS OF THE ORGANIZATION, THE PERCENTAGE DUE TO ORGANIZATION, DEPARTMENT, AND INDIVIDUAL ARE DIFFERENT - MANAGEMENT HAS MORE IMPACT ON ORGANIZATION GOALS, LESS SO ON INDIVIDUAL PERFORMANCE. A VICE PRESIDENT WOULD HAVE 20% FOR INDIVIDUAL PERFORMANCE, 50% FOR DEPARTMENT GOALS, AND 30% FOR ORGANIZATIONAL 'NET REVENUE; A PROJECT MANAGER WOULD HAVE 40% FOR INDIVIDUAL PERFORMANCE, 40% FOR DEPARTMENT GOALS, AND 20% FOR OVERALL ORGANIZATIONAL SUCCESS BASED ON NET REVENUE. DEPARTMENT MANAGERS RATE THEIR STAFF, HR REVIEWS FOR INTERNAL CONSISTENCY ACROSS DEPARTMENTS, AND EXECUTIVE MANAGEMENT RATES DEPARTMENT PERFORMANCE AGAINST GOALS. ORGANIZATIONAL PERFORMANCE MUST MEET CERTAIN NET REVENUE THRESHOLD TO BE PAID OUT. CEO/PRESIDENT COMPENSATION IS REVIEWED BY BOARD COMMITTEE AGAINST 7-9 SPECIFIC GOALS, INCLUDING ORGANIZATION'S YEAR END FINANCIALS. EACH GOAL IS GIVEN A RATING OF 0-2 WITH SPECIFIC PERFORMANCE MEASURES AGAINST EACH SCORE THAT CAN BE EVALUATED TO THE NEAREST TENTH. ALL MEASURES ARE THEN AVERAGED TO CREATE AN OVERALL SCORE. X 17 516121 FMV X SUPPLIES 1 2691 FMV 0 1 0 PART I, COLUMN (B): NUMBER OF CONTRIBUTIONS IS NUMBER OF CONTRIBUTORS. LINE 19 MANY OF THE PROJECTS WHICH FORTERRA UNDERTAKES TO ACHIEVE THEIR MISSION SPAN SEVERAL YEARS. NET REVENUES FROM COMPLETION OF THESE PROJECTS CAN BE REINVESTED TO FUND THE DEVELOPMENT OF PROJECTS IN FUTURE PERIODS, COVERING NET LOSSES IN YEARS WITH NO SIGNIFICANT PROJECT CLOSINGS. FORM 990, PART VI, SECTION B, LINE 11B THE VPFO REVIEWS THE 990 WITH THE COO/CEO AND THEN THE 990 IS SENT TO THE FULL BOARD PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C THE CONFLICT OF INTEREST POLICY IS REVIEWED WITH EACH NEW OFFICER, DIRECTOR AND KEY EMPLOYEE. THEY SIGN A STATEMENT AFFIRMING THEIR UNDERSTANDING. COI DISCLOSURE STATEMENTS ARE SENT TO EACH OFFICER, DIRECTOR AND KEY EMPLOYEE ANNUALLY. ELT MONITORS FOR ANY PREVIOUSLY UNDISCLOSED INFORMATION AND ENSURES FULL COMPLIANCE. BOARD MEMBERS RECUSE THEMSELVES IF THEY HAVE KNOWLEDGE OF ANY RELATIONSHIP OR PRECEIVED RELATIONSHIP RELATED TO PENDING RESOLUTIONS. FORM 990, PART VI, SECTION B, LINE 15A THE COMPENSATION COMMITTEE (A SUB-SET OF THE EXECUTIVE COMMITTEE OF THE BOARD, INCLUDING THE BOARD CHAIR) CONDUCTS AN ANNUAL PERFORMANCE EVALUATION OF THE CEO (AGAINST PRE-DETERMINED GOALS). CEO COMPENSATION IS A COMBINATION OF BASE PAY AND PERFORMANCE PAY RELATED TO THE COMPLETION OF THOSE ORGANIZATIONAL GOALS. FOLLOWING THE ANNUAL EVALUATION, THE SAME COMMITTEE EVALUATES AND RECOMMENDS PERCENTAGE OF PERFORMANCE PAY TO BE PAID, AS WELL AS COMPENSATION PACKAGE FOR THE FOLLOWING YEAR. EVERY 2-3 YEARS A SALARY SURVEY IS COMPILED AND USED FOR COMPARATIVE PURPOSES USING REGIONAL DATA FROM LIKE-SIZED NON-PROFIT ENTITIES AS WELL AS COMPARABLE LAND TRUST/POLICY ORGANIZATIONS NATIONALLY. THE FULL BOARD APPROVES THE COMMITTEE'S RECOMMENDATION IN EXECUTIVE SESSION, AND A MEMO FROM THE CHAIR IS PROVIDED FOR THE CEO'S PERSONNEL FILE. FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE AVAILABLE UPON REQUEST. PART XI, LINE 2C THE AUDIT COMMITTEE HAS NOT CHANGED HOW IT REVIEWS THE ORGANIZATION'S AUDITED FINANCIAL STATEMENTS FROM THE PRIOR YEAR. EVERGREEN FOREST TRUST 901 FIFTH AVENUE SUITE 2200 SEATTLE WA 98164 912082596 ACQUIRE, MANAGE, CONSERVE FORESTLANDS WA 501(C)3 509(A)3 0 FORTERRA ENTERPRISES 901 FIFTH AVENUE SUITE 2200 SEATTLE WA 98164 912195489 CONSERVATION DEVELOPMENT WA FORTERRA NW C 249 8061 1.00000 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 1 0 0