2013-11-13T15:53:00-06:00 2012-12-31 912011386 JACOBSON JARVIS & CO PLLC 600 STEWART STREET SUITE 1900 SEATTLE WA 981011219 990 2012-01-01 943112461 FORTERRA NW FORT 2062925907 901 FIFTH AVENUE NO 2200 SEATTLE WA 98164 GENE DUVERNOY 2062925907 2013-11-07 1 HOWARD DONKIN CPA P00147726 2066288990 2013-11-07 2012 2016-02-24 21:20:13Z GENE DUVERNOY 901 FIFTH AVENUE NO 2200 SEATTLE WA 98164 10130505 0 X WWW.FORTERRA.ORG X 1994 WA PROTECT, ENHANCE AND STEWARD OUR REGION'S COMMUNITIES AND LANDSCAPES. 29 28 66 2349 0 0 9264424 9376559 202270 313536 128211 58275 -20238 -55782 9574667 9692588 3410320 3604592 0 0 3436205 3345260 8383 550 798385 2991985 2893890 9846893 9844292 -272226 -151704 35291646 35335732 882895 979205 34408751 34356527 X WE WILL ACT WITH IMMEDIACY TO PROTECT, ENHANCE AND STEWARD OUR REGION'S MOST PRECIOUS RESOURCES - ITS COMMUNITIES AND ITS LANDSCAPES. 0 0 5382912 3535919 186337 CONSERVATION: IN THE PAST 24 YEARS, FORTERRA HAS CONSERVED OVER 182,000 ACRES, FROM SMALL COMMUNITY PARKS TO WORKING LANDS SPANNING TENS OF THOUSANDS OF ACRES. USING CUTTING-EDGE CONSERVATION STRATEGIES, WE ARE ACTIVELY PURSUING THE CONSERVATION OF HUNDREDS OF THOUSANDS OF ADDITIONAL ACRES. THROUGH ITS 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. IN 2012, FORTERRA PROTECTED OVER 4,100 ACRES IN 6 COUNTIES THROUGH 20 ACQUISITION PROJECTS (EITHER FEE OR CONSERVATION EASEMENT). 1643020 68673 69235 STEWARDSHIP: IN 2012, FORTERRA MONITORED OVER 14,000 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 ARE PARTICIPATING IN THE RESTORATION OF URBAN NATURAL AREAS THROUGH OUR GREEN CITIES PROGRAM. THE PROGRAM BEGAN IN 2004 WITH THE GREEN SEATTLE PARTNERSHIP AND HAS SINCE GROWN TO INCLUDE A TOTAL OF 6 CITIES IN WESTERN WASHINGTON. FORTERRA ALSO WORKS WITH PUBLIC AND PRIVATE PARTNERS TO DO RESTORATION ON A WATERSHED SCALE. ONE GOOD EXAMPLE OF THIS EFFORT IS THE STEWARDSHIP IN ACTION PROGRAM WE ARE IMPLEMENTING ON THE LOWER CEDAR RIVER IN PARTNERSHIP WITH SEATTLE PUBLIC UTILITIES, KING COUNTY AND FRIENDS OF THE CEDAR RIVER WATERSHED. FORTERRA ALSO CONDUCTS RESEARCH TO ILLUSTRATE THE VALUE OF URBAN FORESTS IN PROVIDING ECOSYSTEM SERVICES SUCH AS CARBON SEQUESTRATION AND STORMWATER RETENTION AS WELL AS HOW THEY CONTRIBUTE TO HEALTHY COMMUNITIES. FORTERRAS STEWARDSHIP TEAM ALSO MANAGES INNOVATIVE PROGRAMS WHICH SUPPORT OUR MISSION SUCH AS THE CARBON CAPTURING COMPANIES (C3) PROGRAM WHICH ALLOWS COMPANIES TO VOLUNTARILY OFFSET THEIR CARBON EMISSIONS BY PLANTING TREES IN LOCAL NATURAL AREAS. IN 2012, FORTERRAS STEWARDSHIP PROGRAMS SUPPORTED 1443 RESTORATION WORK PARTIES ENGAGING 25,415 VOLUNTEERS WHO CONTRIBUTED 114,705 HOURS. FORTERRA STEWARDSHIP STAFF LED 60 OF THOSE WORK PARTIES, FACILITATING 2,278 VOLUNTEERS FOR 7,579 HOURS OF SERVICE TOWARDS RESTORING OUR LANDSCAPE. IN TOTAL, FORTERRA IS CURRENTLY RESTORING OR SUPPORTING RESTORATION OF 1,450 ACRES, 265 OF WHICH WERE NEWLY ADDED IN 2012. IN 2012, 123,632 TREES WERE PLANTED ON THOSE ACRES. FORTERRA ENGAGES AND SUPPORTS 300 DEDICATED VOLUNTEERS AS STEWARDS FOR OUR LANDS, THE GREEN CITIES PROGRAM AND THE TREE AMBASSADORS PROGRAM, ADDING 74 NEW STEWARDS IN 2012. THOSE VOLUNTEERS PLAY A CRITICAL ROLE IN THE SUCCESS OF FORTERRAS PROGRAMS, PUTTING FORTH AN INCREDIBLE AMOUNT OF EFFORT IN THE FIELD." 743541 57964 POLICY: THE CASCADE AGENDA, A 100-YEAR VISION AND ACTION PLAN 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. TO ACHIEVE THESE GOALS, NEW CONSERVATION TOOLS AND NEW APPROACHES TO MANAGING GROWTH AND EXPANDING ECONOMIC OPPORTUNITIES IN OUR COMMUNITIES ARE NEEDED. OVER THE PAST SEVERAL YEARS FORTERRA HAS ADVANCED THE GOALS OF THE CASCADE AGENDA IN A NUMBER OF IMPORTANT WAYS. FOR EXAMPLE, WE EXPANDED OUR NETWORK OF CASCADE AGENDA CITIES TO 19 MEMBERS. THROUGH THIS PROGRAM FORTERRA WORKS WITH CITIES TO PURSUE INNOVATIVE POLICIES THAT CREATE VIBRANT AND LIVABLE COMMUNITIES. REPRESENTING A POPULATION OF APPROXIMATELY 1.4 MILLION RESIDENTS, THE CASCADE AGENDA CITIES EMBODY THE PRINCIPLE THAT GREAT CITIES ARE ESSENTIAL TO THE CONSERVATION OF OUR REGIONS RESOURCE LANDS. ANOTHER SUCCESSFUL PROGRAM AREA IS 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. THIS PROGRAM, THE FIRST OF ITS KIND IN THE COUNTRY, IS A MARKET-BASED LAND USE TOOL THAT INCENTIVIZES NEW GROWTH WITHIN EXISTING URBAN AREAS WHILE CONSERVING CRITICAL RESOURCE LANDS. BY COMBINING TDR WITH A LOCAL INFRASTRUCTURE FINANCING TOOL, CITIES IN THE REGION CAN ENHANCE INFRASTRUCTURE AND SERVICES FOR THEIR RESIDENTS WHILE PROMOTING ECONOMIC DEVELOPMENT AND SIMULTANEOUSLY PROTECTING OVER 600,000 ACRES OF FARMS AND FORESTS. THESE EXAMPLES ARE ELEMENTS OF AN INTEGRATED, COMPREHENSIVE APPROACH TO MAINTAINING AND ENHANCING THE QUALITY OF LIFE THAT MAKES OUR REGION A GREAT PLACE TO LIVE. SEVERAL EXCITING NEW PROGRAMS HAVE THE POTENTIAL GREATLY BROADEN OUR IMPLEMENTATION OF THE CASCADE AGENDA IN THE COMING YEARS, AS WELL AS LAUNCH THE EMERGING OLYMPIC AGENDA, A 100-YEAR VISION AND ACTION PLAN FOR THE COUNTIES COMPRISING WASHINGTONS OLYMPIC PENINSULA. 116517 OUTREACH & PUBLIC EDUCATION: FORTERRA PROVIDES EDUCATIONAL INFORMATION ON CONSERVATION TO THE PUBLIC, PRESENTS IT'S MISSION & VISION TO COMMUNITY LEADERS & ORGANIZATIONS, AND PARTICIPATES IN PUBLIC FORUMS ABOUT CONSERVATION. 116517 7885990 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 58 0 1 66 1 0 0 0 0 0 0 0 0 0 0 X 29 28 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 ROB BERNARD 2.00 X 0 0 0 PATTI B CASE 2.00 X X 0 0 0 JJ COLLINS 2.00 X 0 0 0 TJ DICAPRIO 2.00 X 0 0 0 GENE DUVERNOY 40.00 X X 187558 0 7915 NICOLE FAGHIN 2.00 X 0 0 0 DANIEL FRIEDMAN 2.00 X 0 0 0 JIM GREENFIELD 2.00 X X 0 0 0 BERT GREGORY 2.00 X 0 0 0 BOB HART 2.00 X 0 0 0 JOHN HOWELL 2.00 X 0 0 0 A-P HURD 2.00 X 0 0 0 GREG JOHNSON 2.00 X 0 0 0 TOM LUCE 2.00 X 0 0 0 TERRY MUTTER 2.00 X 0 0 0 KEN MYER 2.00 X 0 0 0 GREG NICKELS 2.00 X 0 0 0 DAN NORDSTROM 2.00 X 0 0 0 TOM O'KEEFE 2.00 X 0 0 0 PETER ORSER 2.00 X X 0 0 0 FRANK PRITCHARD 2.00 X 0 0 0 NATALIE QUICK 2.00 X 0 0 0 FLOYD ROGERS 2.00 X 0 0 0 JOE SAMBATARO 2.00 X 0 0 0 BRODERICK SMITH 2.00 X 0 0 0 MARILYN STRICKLAND 2.00 X 0 0 0 BILL TAYLOR 2.00 X 0 0 0 AARON TOSO 2.00 X 0 0 0 DAVID TOWNE 2.00 X 0 0 0 RUTH TRUE 2.00 X 0 0 0 DOUG WALKER 2.00 X 0 0 0 ANDY WAPPLER 2.00 X 0 0 0 RON WHITENER 2.00 X 0 0 0 BRUCE WILLIAMS 2.00 X X 0 0 0 TERESA MACALUSO 40.00 X 98407 0 8833 MICHELLE CONNOR 40.00 X 104312 0 4770 390277 0 21518 2 0 1 0 0 554616 4536081 4285862 2508970 9376559 PROJECT REVENUE 531390 313536 313536 313536 111334 111334 2304 0 2304 2304 2304 317158 370217 -53059 -53059 -53059 0 554616 67700 -67700 -67700 MISCELLANEOUS 900099 9614 9614 9614 9692588 313536 0 2493 3604592 3604592 372277 123201 231906 17170 2397742 1534269 517406 346067 77611 49462 20579 7570 246223 137375 78938 29910 251407 157042 60531 33834 38329 38329 101055 98854 2201 38553 25125 7502 5926 104704 66067 38637 550 550 642433 544444 28646 69343 10863 1055 2025 7783 304463 130165 30812 143486 54345 35780 4279 14286 305006 198479 59827 46700 140208 92363 34387 13458 121425 23920 10034 87471 8215 8215 48845 32309 8916 7620 17623 11485 3429 2709 ACQUISITION EXPENSE 671367 663012 8000 355 STEWARDSHIP MATERIALS 230240 226810 770 2660 BUSINESS TAXES 71778 71000 778 DIRECT/FIXED EXPENSES -67700 -67700 52138 12637 10314 29187 9844292 7885990 1159917 798385 X 1065061 1380830 3433118 2492229 1550455 1150849 97944 181176 25364 27144 201108 148591 18014309 555136 17319151 17459173 4009703 4234777 188237 169576 7401505 8091387 35291646 35335732 478076 714628 175200 163419 229619 0 101158 882895 979205 X 28946526 29509798 4558408 3835281 903817 1011448 34408751 34356527 35291646 35335732 X -151704 102946 1652 -5118 X X 0 1 X 1 1 1 X 12337410 10098393 10826634 9264424 9376559 51903420 12337410 10098393 10826634 9264424 9376559 51903420 1437002 50466418 192561 269667 142944 133011 113638 851821 5764 6870 42264 30176 9614 94688 52849929 1920404 0.95490 0.97250 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 122 107440 107562 9736730 9844292 642215 160554 0 0 483742 517532 642345 642215 2285834 3428751 162239 103546 75097 107562 448444 120936 129383 160586 160554 571459 857189 2083 13 122 2218 PART IV, SUPPLEMENTAL INFORMATION: 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 70 6768.00 1 1 350.00 1 0 750795 107631 769 859195 678238 93687 -21130 750795 622820 53209 2209 678238 566675 65430 -9285 622820 449276 291056 -166527 7132 566673 1.00000 0 0 17185619 17185619 216114 187267 28847 579028 367123 211905 33548 746 32802 17459173 EARNEST MONEY DEPOSITS 50030 PROPERTY HELD FOR SALE 8041357 8091387 DEFERRED RENT LIABILITY 101158 101158 9889305 102946 31189 62582 196717 9692588 0 9692588 9941529 29537 67700 97237 9844292 0 9844292 DESCRIPTION OF HOW ORGANIZATION REPORTS CONSERVATION EASEMENTS: 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: FORTERRA ROUTINELY ACTS AS FISCAL AGENT FOR COMMUNITY LAND ORGANIZATIONS THAT AREN'T 501(C)(3)S ON THEIR OWN. IN THE CURRENT PERIOD, TOTAL TRANSACTIONS WERE $412 IN TRANSACTIONS FOR THE JULIA'S GULCH SPLASH GRANT. DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: 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 67,700. WRITE DOWN OF LAND HELD FOR SALE -5,118. PART XII, LINE 2D - OTHER ADJUSTMENTS: DIRECT COST OF FUNDRAISING EVENTS 67,700. AWARDS BREAKFAST 554616 554616 67700 554616 554616 67700 67700 -67700 1 WWRC ACTION FUND 1402 THIRD SEATTLE WA 98101 501(C)(3) 7500 EVENT SPONSORSHIP TRUST FOR PUBLIC LAND 901 FIFTH AVE STE 1500 SEATTLE WA 98164 501(C)(3) 44419 CONTRIBUTION AS SHARE OF FEE PIERCE CONSERVATION DISTRICT PO BOX 1057 PUYALLUP WA 98371 115 68673 TRANSFER OF GRANT FUNDS WA DEPARTMENT OF FISH AND WILDLIFE 1111 WASHINGTON STREET SE OLYMPIA WA 98501 115 330000 APPRAISAL CHETLO HARBOR LAND PERMANENT CONSERVATION OF ESTUARY THAT PROVIDES HABITAT FOR A WIDE VARIETY OF FISH AND BIRD SPECIES AND IMPROVES WATER QUALITY THAT WILL PROVIDE BENEFITS FOR PUBLIC RECREATIONAL ACTIVITIES AND A ROBUST SHELLFISH INDUSTRY. TACOMA WATER 3628 S 35TH STREET TACOMA WA 98409 115 1813000 APPRAISAL SAWMILL CREEK LAND MAINTENANCE OF FOREST HABITAT IN PERPETUITY. KEEP WATER SUPPLY CLEAN AND PROVIDE QUALITY HABITAT FOR WILDLIFE. WA DEPARTMENT OF FISH AND WILDLIFE 1111 WASHINGTON STREET SE OLYMPIA WA 98501 115 960000 APPRAISAL HAWKS POINT LAND PERMANENT CONSERVATION OF ESTUARY THAT PROVIDES HABITAT FOR A WIDE VARIETY OF FISH AND BIRD SPECIES AND IMPROVES WATER QUALITY THAT WILL PROVIDE BENEFITS FOR PUBLIC RECREATIONAL ACTIVITIES AND A ROBUST SHELLFISH INDUSTRY WA DEPARTMENT OF FISH AND WILDLIFE 1111 WASHINGTON STREET SE OLYMPIA WA 98501 115 381000 APPRAISAL SIPPY SLOUGH LAND PERMANENT CONSERVATION OF ESTUARY THAT PROVIDES HABITAT FOR A WIDE VARIETY OF FISH AND BIRD SPECIES AND IMPROVES WATER QUALITY THAT WILL PROVIDE BENEFITS FOR PUBLIC RECREATIONAL ACTIVITIES AND A ROBUST SHELLFISH INDUSTRY 7 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, 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 169558 0 18000 0 0 0 7325 0 590 0 195473 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 7 8473 QUOTED PRICE X 2 2491000 APPRAISAL X EQUIPMENT AND SUPPLIES 53 9497 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 RECUSE 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. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 9: WRITE DOWN OF KENT SIDE HILL -109,418. WRITE UP OF UMBRELLA BAY 104,300. REVIEW OF AUDITED FINANCIAL STATEMENTS 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 828 170277 1.00000 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 1 0 0