2014-11-17T15:43:41-06:00 2013-12-31 912011386 JACOBSON JARVIS & CO PLLC 200 FIRST AVE WEST SUITE 200 SEATTLE WA 981194219 990 2013-01-01 943112461 FORTERRA NW FORT 2062925907 901 FIFTH AVENUE NO 2200 SEATTLE WA 98164 GENE DUVERNOY PRESIDENT 2062925907 2014-11-14 1 HOWARD DONKIN CPA P00147726 2066288990 2014-11-14 2013 2015-11-30 17:44:51Z GENE DUVERNOY 901 FIFTH AVENUE NO 2200 SEATTLE WA 98164 15392181 0 X WWW.FORTERRA.ORG X 1994 WA PROTECT, ENHANCE AND STEWARD OUR REGION'S COMMUNITIES AND LANDSCAPES. 31 30 65 1433 0 0 9376559 6791798 313536 842249 58275 67325 -55782 -59887 9692588 7641485 3604592 3256210 0 0 3345260 3538928 550 0 771998 2893890 2448572 9844292 9243710 -151704 -1602225 35335732 33641272 979205 846725 34356527 32794547 X WE WILL ACT WITH IMMEDIACY TO PROTECT, ENHANCE AND STEWARD OUR REGION'S MOST PRECIOUS RESOURCES - ITS COMMUNITIES AND ITS LANDSCAPES. 0 0 5031917 3147497 484097 CONSERVATION: OVER THE PAST 25 YEARS, FORTERRA HAS CONSERVED OVER 232,000 ACRES, FROM SMALL COMMUNITY PARKS TO WORKING LANDS SPANNING TENS OF THOUSANDS OF ACRES. IN 2013 ALONE, FORTERRA PROTECTED NEARLY 52,000 ACRES IN 5 COUNTIES THROUGH 16 ACQUISITION PROJECTS (EITHER FEE OR CONSERVATION EASEMENT). WE BELIEVE THAT CONSERVATION EFFORTS MUST CONTINUE IF OUR REGION IS GOING TO MAINTAIN ENOUGH NATURAL AND WORKING LANDS TO SUPPORT THE HEALTH AND WELL-BEING OF ALL ITS INHABITANTS. AT FORTERRA WE USE A WIDE ANGLE APPROACH TO LAND CONSERVATION, CONSIDERING LOCAL ECONOMIES, BIODIVERSITY, GEODIVERSITY AND THE HEALTH AND SOCIAL BENEFITS OF THE ENVIRONMENT. THE RESULT: CONSERVATION THAT TAKES INTO ACCOUNT THE HUMAN ELEMENTS OF THE LANDSCAPE, ADDRESSING THE IMPORTANT CONNECTIONS BETWEEN PEOPLE AND LAND. 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 RIVER CORRIDOR WHICH ENCOMPASSES THE TEANAWAY RIVER VALLEY, THE SWIFTWATER CORRIDOR AND THE YAKIMA RIVER SCENIC BYWAY SCENIC CANYON. 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. 1250790 150 326893 STEWARDSHIP: IN 2013, FORTERRA MONITORED 14,479 ACRES OF FEE AND CONSERVATION EASEMENT PROPERTIES IN 12 WASHINGTON COUNTIES. IN ADDITION TO CARING FOR THE LANDS THAT FORTERRA HAS CONSERVED AND THAT ARE UNDER FORTERRA OWNERSHIP OR CONSERVATION EASEMENT, WE 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 6 CITIES IN WESTERN WASHINGTON. THROUGH ITS STEWARDSHIP IN ACTION PROGRAM, FORTERRA ALSO DOES WORK ON A WATERSHED SCALE, WORKING WITH PUBLIC AND PRIVATE PARTNERS ON PROJECTS LIKE THE CEDAR RIVER WATERSHED IN WHICH WE PARTNER WITH SEATTLE PUBLIC UTILITIES, KING COUNTY AND FRIENDS OF THE CEDAR RIVER WATERSHED. IN TOTAL, FORTERRA IS CURRENTLY RESTORING OR SUPPORTING RESTORATION OF 1,788 ACRES, 233 OF WHICH WERE NEWLY ADDED IN 2013. IN 2013, 155,828 TREES WERE PLANTED ON THOSE ACRES. TO ACCOMPLISH ALL THIS, FORTERRA RELIES ON THOUSANDS OF VOLUNTEERS. IN 2013 ALONE, FORTERRA'S STEWARDSHIP PROGRAMS SUPPORTED 1,564 RESTORATION WORK PARTIES ENGAGING 29,402 VOLUNTEERS WHO CONTRIBUTED 126,119 HOURS. FORTERRA ENGAGES AND SUPPORTS 351 DEDICATED VOLUNTEERS AS STEWARDS FOR OUR LANDS, THE GREEN CITIES PROGRAM AND THE TREE AMBASSADORS PROGRAM, ADDING 13 NEW STEWARDS IN 2013. THESE VOLUNTEERS PLAY A CRITICAL ROLE IN THE SUCCESS OF FORTERRA'S PROGRAMS, PUTTING FORTH AN INCREDIBLE AMOUNT OF EFFORT IN THE FIELD. MAINTAINING THE HEALTH OF ALL OUR REGION'S LANDS REQUIRES ONGOING MANAGEMENT AND CARE. AND DOING STEWARDSHIP AND RESTORATION WORK WITH COMMUNITIES NOT ONLY GETS THIS JOB DONE BUT INSTILLS AN ETHIC OF STEWARDSHIP THAT PAYS FAR INTO THE FUTURE, RESULTING IN HEALTHY HABITATS AND HEALTHY, SUSTAINABLE COMMUNITIES. 922613 108563 31259 POLICY: THE AGENDAS (THE CASCADE AND SUBSEQUENTLY THE OLYMPIC), 100-YEAR VISIONS AND ACTION PLANS FOR THE REGION, ESTABLISHED TWO OVERARCHING GOALS: TO CONSERVE NEARLY 1.3 MILLION ACRES OF WORKING FORESTS, FARMS, SHORELINES, PARKS AND NATURAL AREAS; AND TO MAKE OUR CITIES AND TOWNS GREAT PLACES TO LIVE, WORK AND RAISE OUR FAMILIES. OVER THE PAST SEVERAL YEARS FORTERRA HAS ADVANCED THE GOALS OF THE AGENDAS IN A NUMBER OF IMPORTANT WAYS. USING OUR EXPERTISE IN LAND AND CONVENING, WE HELP COMMUNITIES GRACEFULLY ACCOMMODATE NEW GROWTH AND CREATE A HIGH QUALITY OF LIFE FOR ALL ITS RESIDENTS. TO DATE WE HAVE MEANINGFULLY ENGAGED WITH OVER 81 COMMUNITIES IN OUR REGION. RECENTLY IN TUKWILA, FORTERRA PARTNERED WITH THE CITY 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. WE'VE ADVANCED POLICY TO ACHIEVE OUR MISSION AS WELL, INCLUDING TRANSFER OF DEVELOPMENT RIGHTS, OR TDR. FORTERRA PIONEERED LEGISLATION THAT CREATED A REGIONAL TRANSFER OF DEVELOPMENT RIGHTS PROGRAM FOCUSED ON PROTECTING THE FARMS AND FORESTS THAT ARE VITAL TO THE HEALTH OF THE PUGET SOUND REGION. 143,000 ACRES OF FOREST, FARM, AND HABITAT LANDS HAVE BEEN CONSERVED WITH THIS TOOL TO-DATE. THE LANDSCAPE CONSERVATION AND LOCAL INFRASTRUCTURE PROGRAM, ANOTHER POLICY CONCEIVED AND DEVELOPED BY FORTERRA AND PASSED INTO STATE LAW IN 2011, COMBINES TDR WITH A FINANCING OPTION FOR CITIES THAT CREATES INCENTIVES FOR BOTH LAND CONSERVATION AND COMMUNITY SUPPORT INVESTMENT. TO DATE 12 CITIES HAVE PURSUED THE USE OF LCLIP, INCLUDING SEATTLE, WHOSE PROGRAM IS EXPECTED TO CONSERVE 25,000 ACRES OF FARMS AND FORESTS AND GENERATE NEARLY $30 MILLION IN ADDITIONAL REVENUE FOR PROJECTS THAT WILL IMPROVE THE ATTRACTIVENESS AND QUALITY OF LIFE IN SOUTH LAKE UNION AND DOWNTOWN. TEN YEARS LATER, FORTERRA IS UNDERTAKING A SIMILARLY PROACTIVE AND OUT OF THE BOX PROCESS TO THE ORIGINAL AGENDAS, EXPLORING HOW WE CAN BEST ADDRESS THE RAPIDLY ACCELERATING CHANGES PROFOUNDLY AFFECTING THIS PLACE WE LOVE. THE 'NEXT WAVE,' TO BE LAUNCHED MAY 2015, THINKS HOLISTICALLY, RECOGNIZING THE INTERCONNECTEDNESS OF THE NATURAL WORLD, BUILT WORLD AND SOCIAL WORLD AS THE KEY TO UNLOCKING THE SOLUTIONS. 55341 OUTREACH & PUBLIC EDUCATION: FORTERRA PROVIDES EDUCATIONAL INFORMATION ON CONSERVATION TO THE PUBLIC, PRESENTS ITS MISSION & VISION TO COMMUNITY LEADERS & ORGANIZATIONS, AND PARTICIPATES IN PUBLIC FORUMS ABOUT CONSERVATION. 55341 7260661 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 57 0 1 65 1 0 0 0 0 0 0 0 0 0 0 X 31 30 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 0 0 WA X X MELISSA LAIRD CONTROLLER 2062925907 901 FIFTH AVENUE SUITE 2200 SEATTLE WA 98164 JIM GREENFIELD CHAIR 2.00 X X 0 0 0 BERT GREGORY VICE CHAIR 2.00 X X 0 0 0 PETER ORSER PAST CHAIR 2.00 X X 0 0 0 PATTI B CASE SECRETARY 2.00 X X 0 0 0 A-P HURD TREASURER 2.00 X X 0 0 0 AARON TOSO BOARD MEMBER 2.00 X 0 0 0 ANDY WAPPLER BOARD MEMBER 2.00 X 0 0 0 BILL TAYLOR BOARD MEMBER 2.00 X 0 0 0 BRODERICK SMITH BOARD MEMBER 2.00 X 0 0 0 DAN NORDSTROM BOARD MEMBER 2.00 X 0 0 0 DAVE TOWNE BOARD MEMBER 2.00 X 0 0 0 DOUG WALKER BOARD MEMBER 2.00 X 0 0 0 FLOYD ROGERS BOARD MEMBER 2.00 X 0 0 0 FRANK PRITCHARD BOARD MEMBER 2.00 X 0 0 0 GREG JOHNSON BOARD MEMBER 2.00 X 0 0 0 GREG NICKELS BOARD MEMBER 2.00 X 0 0 0 JAY PITTENGER BOARD MEMBER 2.00 X 0 0 0 JJ COLLINS BOARD MEMBER 2.00 X 0 0 0 JOE SAMBATARO BOARD MEMBER 2.00 X 0 0 0 KEN MYER BOARD MEMBER 2.00 X 0 0 0 LISA GRAUMLICH BOARD MEMBER 2.00 X 0 0 0 MARILYN STRICKLAND BOARD MEMBER 2.00 X 0 0 0 NATALIE QUICK BOARD MEMBER 2.00 X 0 0 0 NICOLE FAGHIN BOARD MEMBER 2.00 X 0 0 0 PAT CALLAHAN BOARD MEMBER 2.00 X 0 0 0 RON WHITENER BOARD MEMBER 2.00 X 0 0 0 RUTH TRUE BOARD MEMBER 2.00 X 0 0 0 TERRY MUTTER BOARD MEMBER 2.00 X 0 0 0 TOM LUCE BOARD MEMBER 2.00 X 0 0 0 TOM O'KEEFE BOARD MEMBER 2.00 X 0 0 0 GENE DUVERNOY PRESIDENT/CEO 45.00 X X 179263 0 8200 TERESA MACALUSO EXECUTIVE VP / COO 45.00 X 98207 0 9618 MICHELLE CONNOR EXECUTIVE VP / STRATEGIC ENTERPRISES 45.00 X 111785 0 5468 389255 0 23286 2 0 1 0 0 650153 4492379 1649266 64748 6791798 PROJECT REVENUE 531390 842249 842249 842249 83418 83418 6561 0 6561 6561 6561 7632724 31100 7643667 36250 -10943 -5150 -16093 -16093 0 650153 70779 -70779 -70779 MISCELLANEOUS 900099 4331 4331 4331 7641485 842249 0 7438 3256210 3256210 412542 138323 266424 7795 2559009 1669917 515678 373414 68210 43724 15428 9058 235787 146008 52254 37525 263380 159134 67571 36675 37791 37791 421882 421824 58 39155 1043 38112 66110 66110 391279 287258 58936 45085 12876 1005 4148 7723 353558 92389 138942 122227 55846 26302 24066 5478 370756 20 370736 118820 81937 27899 8984 132854 26333 13122 93399 50524 50524 45602 3387 42215 STEWARDSHIP MATERIALS 177319 177319 BUSINESS TAXES 82179 76286 5893 ACQUISITION EXPENSE 36353 26203 10150 DIRECT/FIXED EXPENSES -88023 399196 -500654 13435 143691 122942 9549 11200 9243710 7260661 1211051 771998 X 1380830 660180 2492229 1834996 1150849 935643 181176 90498 27144 28918 148591 202028 18422148 600239 17459173 17821909 4234777 5336192 169576 137230 8091387 6593678 35335732 33641272 714628 484827 163419 155915 101158 205983 979205 846725 X 29509798 28626076 3835281 3151388 1011448 1017083 34356527 32794547 35335732 33641272 -1602225 40245 0 X X 0 1 X 1 1 1 X 10098393 10826634 9264424 9376559 6791798 46357808 10098393 10826634 9264424 9376559 6791798 46357808 1341994 45015814 269667 142944 133011 113638 89979 749239 6870 42264 30176 9614 4331 93255 47200302 2406927 0.95370 0.95490 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 65 67527 67592 8404120 8471712 573586 143397 0 0 517532 642345 642215 573586 2375678 3563517 103546 75097 107562 67592 353797 129383 160586 160554 143397 593920 890880 13 122 65 200 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 74 7308.00 1 1 350.00 1 0 859195 5635 2089 40683 826236 750795 107631 769 859195 678238 93687 -21130 750795 622820 53209 2209 678238 566675 65430 -9285 622820 1.00000 0 0 17556623 17556623 216114 188740 27374 610295 408454 201841 39116 3045 36071 17821909 EARNEST MONEY DEPOSITS 5031 PROPERTY HELD FOR SALE 6588647 6593678 DEFERRED RENT LIABILITY 205983 205983 7825253 40245 72744 70779 183768 7641485 0 7641485 9387233 72744 70779 143523 9243710 0 9243710 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: WE WERE A FISCAL SPONSOR FOR FRIENDS OF SEATTLE WATERFRONT. IN 2013, $615,903 OF CONTRIBUTIONS AND $267,491 OF EXPENSES RELATED TO THIS WERE RECORDED IN THE FINANCIAL STATEMENTS. 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 70,779. PART XII, LINE 2D - OTHER ADJUSTMENTS: DIRECT COST OF FUNDRAISING EVENTS 70,779. AWARDS BREAKFAST 650153 650153 70779 650153 650153 70779 70779 -70779 1 WWRC ACTION FUND 1402 THIRD SEATTLE WA 98101 501(C)(3) 7500 EVENT SPONSORSHIP SEATTLE SHAKESPEARE 305 HARRISON ST SEATTLE WA 98109 911512717 501(C)(3) 5000 EVENT SPONSORSHIP WA DEPARTMENT OF FISH AND WILDLIFE 600 CAPITOL WAY NORTH OLYMPIA WA 98501 115 460000 APPRAISAL CANNON RIVER LAND PERMANENT CONSERVATION OF LAND THAT PROVIDES QUALITY HABITAT FOR WILDLIFE AND BENEFITS FOR PUBLIC RECREATIONAL ACTIVITIES. WA DEPARTMENT OF FISH AND WILDLIFE 600 CAPITOL WAY NORTH OLYMPIA WA 98501 115 914710 APPRAISAL NORTH RIVER LAND PERMANENT CONSERVATION OF LAND THAT PROVIDES QUALITY HABITAT FOR WILDLIFE AND BENEFITS FOR PUBLIC RECREATIONAL ACTIVITIES. WA DEPARTMENT OF FISH AND WILDLIFE 1111 WASHINGTON STREET SE OLYMPIA WA 98501 115 78000 APPRAISAL NASELLE MARSH LAND PERMANENT CONSERVATION OF LAND THAT PROVIDES QUALITY HABITAT FOR WILDLIFE AND BENEFITS FOR PUBLIC RECREATIONAL ACTIVITIES. WA DEPARTMENT OF FISH AND WILDLIFE 600 CAPITOL WAY NORTH OLYMPIA WA 98501 115 1268000 APPRAISAL COLE CREEK LAND PERMANENT CONSERVATION OF LAND THAT PROVIDES QUALITY HABITAT FOR WILDLIFE AND BENEFITS FOR PUBLIC RECREATIONAL ACTIVITIES. WA DEPARTMENT OF FISH AND WILDLIFE 600 CAPITOL WAY NORTH OLYMPIA WA 98501 115 347000 APPRAISAL SMITH CREEK LAND PERMANENT CONSERVATION OF LAND THAT PROVIDES QUALITY HABITAT FOR WILDLIFE AND BENEFITS FOR PUBLIC RECREATIONAL ACTIVITIES. WA STATE PARKS & REC PO BOX 42650 OLYMPIA WA 98504 115 145000 APPRAISAL MARTIN LAND PERMANENT CONSERVATION OF LAND THAT PROVIDES QUALITY HABITAT FOR WILDLIFE AND BENEFITS FOR PUBLIC RECREATIONAL ACTIVITIES. GREEN DIAMOND 1301 5TH AVE SUITE 2700 SEATTLE WA 98101 31000 APPRAISAL DECKER CREEK LAND PERMANENT CONSERVATION OF LAND THAT PROVIDES QUALITY HABITAT FOR WILDLIFE AND BENEFITS FOR PUBLIC RECREATIONAL ACTIVITIES. 9 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. 1 X X X X X 0 0 0 1 0 0 0 0 0 GENE DUVERNOY PRESIDENT/CEO 179263 0 0 0 0 0 7172 0 1028 0 187463 0 0 0 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 6 28352 QUOTED PRICE X 1 36250 APPRAISAL 0 1 0 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 11 THE 990 IS REVIEWED IN DETAIL BY BOTH THE CONTROLLER AND THE CHIEF OPERATING OFFICER (EXECUTIVE VICE PRESIDENT). IT IS REVIEWED AND SIGNED BY THE PRESIDENT. THE COMPLETE FORM 990 IS E-MAILED TO THE ENTIRE BOARD (INCLUDING THE FINANCE COMMITTEE) BEFORE IT IS FILED. 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. CONFLICT OF INTEREST DISCLOSURE STATEMENTS ARE SENT TO EACH OFFICER, DIRECTOR AND KEY EMPLOYEE ANNUALLY. COO MONITORS FOR ANY PREVIOUSLY UNDISCLOSED INFORMATION AND ENSURES FULL COMPLIANCE. BOARD MEMBERS RECUES THEMSELVES IF THEY HAVE KNOWLEDGE OF ANY RELATIONSHIP OR PERCEIVED 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 % 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. 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 710 137869 1.00000 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 1 0 0