The MicroForest Program

A TerraVerde MicroForest is simply a defined area of forest within a larger Forest Property which is owned by the TerraVerde Foundation (or a collaborating partner). A sponsor/investor purchasing a TerraVerde MicroForest receives a negotiable MicroForest Certificate which represents Beneficial ownership of a specific TerraVerde MicroForest. MicroForest Certificates are in all cases issued by a Panamanian Private Interest Foundation which may be the TerraVerde Foundation or a partner Foundation. The Foundation acts as depository for the Forest Property within which the MicroForest is located and holds the Forest Property in safekeeping on behalf of and for the benefit of the sponsoring Beneficiary, which may be a legal entity or a natural person (or persons) of good standing. The Foundation retains control and legal ownership of the Forest Property to ensure that protection is maintained in perpetuity and issues the MicroForest Certificate transferring Beneficial ownership to the Beneficiary.

Sponsors are Beneficial owners of their MicroForest.

Each TerraVerde MicroForest Certificate specifies the name and location of the Forest Property within which the MicroForest is located and the size of the MicroForest (in square meters) which is represented by the MicroForest Certificate. Larger MicroForests may also be individually identified by their GPS co-ordinates. Smaller MicroForests, which are defined only by their size (in square meters) without reference to a specific location within the Forest Property, are held on a “common” basis. In this case the sponsor/investor is, in effect, protecting a small part of everything within the area of the Forest Property reserved specifically for these “pooled” MicroForests. The Foundation takes great care to ensure that an area of Forest Property is not assigned to more than one MicroForest.

MicroForest Certificates are real estate investments and like other such investments can generally be expected to increase in value, especially in the case of Frontier and other Mature MicroForests if the destruction of such Forests continues. Real estate investments are less liquid than many other assets and are best viewed with a long term perspective. From time to time, the Forest Properties held by the Foundation on behalf of its Beneficiaries are appraised and a market value per square meter is established. This in turn establishes the value of the MicroForests within each Forest Property and the value for each of the MicroForest Certificates which represents these MicroForests. A MicroForest Certificate is negotiable and may be sold to a third party however, all trades must be completed through the Foundation to ensure the transfer of the MicroForest Certificate and the underlying MicroForest to the new Beneficiary is properly recorded and the new owner fully informed. Beneficial ownership of a MicroForest is an asset which becomes part of the original investor’s Estate and on his death is transferred to another Beneficiary as instructed by the original investor.

It is important for sponsor/investors not to lose sight of the fundamental Mission of the TerraVerde MicroForest Program which is to secure the long-term protection and conservation of a vital global ecological asset which continues to be threatened - our Frontier, Mature and Established Secondary Forests especially those in the Tropics. The TerraVerde MicroForest program is unique in that it ensures the perptual protection of the Forest Properties by retaining control and legal ownership of these Forests Properties by a Panamanian Foundation (or Foundations) while assigning Beneficial ownership of the MicroForests within the Forest Properties to the MicroForest sponsor/investor who becomes a Beneficiary of the Foundation in return for this investment. The transfer of Beneficial ownership of a MicroForest to a sponsor and the issuance of a negotiable MicroForest Certificate which evidences the sponsor’s Beneficial ownership in no way compromises or defeats the primary Mission of the TerraVerde Foundation.

It is also important that sponsor/investors understand that it is essential to achieving the objectives of the MicroForest Program that the Foundation retains control and legal ownership of the Forest Properties while the sponsor/investor acquires Beneficial ownership. The Forest Properties are owned by the Foundation and not by any individual person or persons and, as the Foundation has perpetual duration independent of the demise of its Founder and/or Council Members, so control and legal ownership and the resulting protection of the Forest Properties afforded by this legal ownership is also perpetual. Only by using this approach can the Foundation assure MicroForest investors that our primary Mission will be achieved and the Forest Properties will remain protected and undisturbed in perpetuity.

Where practical, sponsoring Beneficiaries are most welcome to visit their MicroForest however, a MicroForest may be located in a remote region which is not accessible by road and it may therefore be impractical for the Beneficiary to visit. Please note also the comments above regarding smaller MicroForests which are held on a “common” basis. To fulfill our objective to conserve the Forest Properties, Beneficiaries must agree not to attempt to take possession, occupy, change or make use of their MicroForest in any way whatsoever.