Company Background

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Company Background
Forest Capital Partners, LLC

• Founded 2000 by Matt Donegan, Scott Jones
• 2000-2001 Investor Development
• 2002 First Investment, Idaho
• 2003 Second Investment, Idaho
• Third Investment, Louisiana/Texas
• 2004 Boise Transaction
• 2005 Status
• High level of investor loyalty
• Relationship objectives have been met/exceeded
  with employees, customers, conservationists,
  regulators and communities
• Stewardship objectives have been met/exceeded
• Major growth challenges with Boise transaction

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Company Background
Forest Capital Partners, LLC

• Principal Backgrounds
• Industrial forestry
• Institutional management
• Founded Forest Capital in 2000
• Rationale Behind Forest Capital
• Recruit underserved investors non-pension
• Offer better investment products
• Invest alongside investors
• Emphasize operations
• Reduce corporate overhead
• Emphasize quality and relationships over growth

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Forest Capital Partners, LLC
At-a-Glance
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Company Background
Forest Capital Partners, LLC

• Vision
• Earning and maintaining the trust and loyalty of
  our business partners investors, mill
  customers, conservation interests, and the
  communities where we live and operate through
  performance, integrity and forest stewardship.

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Company Background
Forest Capital Partners, LLC

• Vision

• What it is
• grounded in values
• founded upon exceeding expectations
• focused performance, integrity, stewardship
• daily attention to detail
• bottom-up

• What it is not
• driven by growth or company size
• unrealistic
• diluted
• world class
• top-down

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Company Background
Forest Capital Partners, LLC
Performance Integrity Stewardship
Investor Service
Finance Accounting
Forest Operations
Acquisitions Land Sales
Matt Donegan
Scott Jones
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Organizational Structure
Forest Capital Partners, LLC
Matt Donegan Co-President
Scott Jones Co-President
GM Inland
GM Tech Services
Investor Service
GM East
CFO
Real Estate
Acquisitions
Divestitures
GM Pacific
Controller
Fund Accounting
LA
Regional Tech Service
Regional Real Estate
HR
Idaho
NW Oregon
Certification Policy
Mgt Co Accounting
Regional Accountants
MN
NE Washington
SW Oregon
MIS
NE Oregon
Lands Records
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Forest Capital USA
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Forest Capital Idaho Region
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Forest Capital Washington Region
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Forest Capital N.E. Oregon Region
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Forest Capital Partners, LLC
Our Customers

• 1. Buyers of Timber
• Boise is now our most important customer
• 2. Buyers of Land
• Institutions, Retail Investors, Mill Owners,
  Conservation Groups, Government
• 3. Buyers of Conservation Easements and other
  Land-Use Rights
• Conservation groups such as the Nature
  Conservancy
• 4. Buyers of Minerals, Oil Gas and other
  Non-Timber Commodities
• 5. Hunters and Recreational Land Users
• Major difference between investment firm and
  integrated forest products company

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Forest Capital Partners, LLC
2005 Priorities

• Leadership through Transition Period
• Deliver Financial Performance
• Deliver Prudent Forest Stewardship
• Establish Presence in Local Communities
• Establish Forest Investment Culture
• Establish and Build Relationships with Key
  Business Partners