Root Capital Inc.

“Form 990, Part III, Line 1 ROOT CAPITAL CLIENTS ARE ASSOCIATIONS AND PRIVATE BUSINESSES THAT BRING TOGETHER SMALL-SCALE RURAL PRODUCERS. THESE ENTERPRISES HELP BUILD SUSTAINABLE LIVELIHOODS IN SECTORS SUCH AS AGRICULTURE, WILD-HARVESTED FOREST PRODUCTS, AND HANDCRAFTS. ROOT CAPITAL CURRENTLY WORKS IN LATIN AMERICA, SUB-SAHARAN AFRICA, AND SOUTHEAST ASIA. SINCE 1999, ROOT CAPITAL HAS DISBURSED MORE THAN $887 MILLION IN CREDIT TO MORE THAN 593 ENTERPRISES. ROOT CAPITAL CLIENTS HAVE HELPED IMPROVE LIVELIHOODS FOR MORE THAN 963,000 RURAL HOUSEHOLDS IN AFRICA AND LATIN AMERICA. IN CALENDAR YEAR 2014, ROOT CAPITAL DISBURSED $178 MILLION TO 231 SMALL AND GROWING BUSINESSES (SGBS) WHO REPRESENT MORE THAN 441,000 FARM HOUSEHOLDS IN AFRICA AND LATIN AMERICA. AS A NON-PROFIT COMMITTED TO ALLEVIATING RURAL POVERTY, ROOT CAPITAL SEEKS TO MAXIMIZE THE POSITIVE SOCIAL AND ENVIRONMENTAL IMPACT OF OUR WORK. SOCIAL IMPACT INCLUDES STABILIZING INCOMES IN RURAL COMMUNITIES AND CREATING NEW ECONOMIC OPPORTUNITIES FOR WOMEN, INDIGENOUS PEOPLES, AND OTHER MARGINALIZED GROUPS. ROOT CAPITAL CLIENTS ALSO PROMOTE BETTER ENVIRONMENTAL PRACTICES, SUCH AS IMPROVED SOIL AND WATER MANAGEMENT.”

“Finance Form 990, Part III, Line 4a Most Root Capital loans can be categorized as follows: 1) Short-term trade credit loans with terms of up to one year that are generally oriented around a harvest or production cycle. These loans are typically used by borrowers to cover costs during the months between purchasing raw product from their farmer suppliers and receiving payment from their buyers. 2) Long-term fixed-asset loans with terms of up to seven years for investment in processing equipment, infrastructure, and general operations. Root capital assesses prospective clients and evaluates them on a series of financial, social, and environmental criteria. Social criteria include prices paid to suppliers, employee wages, and working conditions, and company support for social programs such as training and medical care. Environmental criteria include soil and water management, the impact of the business on the surrounding community, and standards for product handling and processing. Root Capital's lending supports sustainable environmental practices that protect rural ecosystems. Crops processed and marketed by Root Capital clients include wild-harvested products such as nuts and native plants for oils, agro-forestry crops such as shade-grown coffee and cocoa, and farm-grown fruits and vegetables. Lending officers stay engaged with clients throughout the term of each loan, and Root Capital's financial advisory services program provides training as needed. This long-term approach to client relationships has led to a repayment rate of 95% or better since inception. Advise Form 990, Part III, Line 4b Since its launch in 2006, Root Capital's financial advisory services program has successfully strengthened the financial management capacity of 600 producer associations representing thousands of people. These engagements have confirmed that rural business leaders, when equipped with sound financial management practices and processes, are better positioned to access credit, compete in the marketplace, and grow their businesses. Financial Advisory Services provides training on the following topics: accounting, financial planning, financial risk management, financial statement analysis, loan application preparation, and credit management. Financial Advisory Services products include: - Information seminars that explain Root Capital's credit products, credit requirements, and training services - Diagnostics and workplan workshops that offer comprehensive business process assessment and identify areas for improvement and development - Financial training for potential and current clients that focus on developing and improving financial management systems - Loan application preparation services for potential and current clients. Catalyze Form 990, Part III, Line 4c Through industry associations such as the Aspen Network of Development Entrepreneurs and The Global impact Investment Network, Root Capital plays a leadership role in building the enabling environment for rural small and growing business finance. As a non-profit committed to alleviating rural poverty, Root Capital seeks to maximize the positive social and environmental impact of our work. Economic, community, and environmental sustainability are all part of our core values. Economic sustainability - Root capital clients link small-scale farmers to markets that can offer higher and more stable prices than they have historically received. Root Capital clients also generate employment including managers, accountants, agricultural extension staff, drivers, and workers at processing plants. Root Capital works with more than 120 leading buyers of agricultural sustainable products worldwide. Buyers of goods from Root Capital clients include companies such as Equal Exchange, General Mills, Green Mountain coffee, Pier 1 Imports, Starbucks, Taza Chocolate, The Body Shop, and Whole Foods Market. In 2014, Root capital clients spent $842 million to purchase the products of small-scale farmers and”

“Form 990, Part VI, Line 2 Board members Elizabeth Luckett and Jeremy Mindich have a business relationship.”

“Form 990, Part VI, Line 11b The Form 990 was prepared by an independent public accounting firm with information provided by management. The Form 990 is reviewed by the President and Treasurer and presented to the Audit Committee for approval. Upon approval by the Audit Committee, the complete Form 990 is provided to all voting members of the board of directors with opportunity for questions, comments, or edits. Prior to filing with the Internal Revenue Service, Director comments are incorporated as appropriate and the final version of the 990, as it will ultimately be filed, is provided to each voting member.”

“Form 990, Part VI, Line 12c All Root Capital Board members and employees participate in an annual training on Root Capital's Code of Ethics, which includes a Conflict of Interest policy. Directors and Officers complete a Conflict of Interest disclosure form each year, which is reviewed by Root Capital's Governance, Risk Management & Compliance (GRC) team, and vetted with legal counsel if needed. If it is necessary to review or clear a conflict related to the current work or activity of Root Capital, that conflict is brought before the Governance Committee of the Board. If the Director with the conflict serves on the Governance Committee, s/he is recused from the conversation. The Governance Committee ensures that any business decision that could be affected by the particular conflict is considered objectively by the Root Capital team and is in the best interest of the organization. The Governance Committee's conversation and decision with respect to the conflict is recorded in the minutes of the meeting and shared with the whole Board in the subsequent quarterly Board Book. Lending personnel at Root Capital are trained on Root's Conflict of Interest policy in the course of its annual Code of Ethics (COE) workshops. Before these workshops, all of Root Capital's internal policies are shared with the participants and, after the training, participants are asked to sign an acknowledgement form attesting that they have read the policies and completed the training. To ensure that lending personnel are clear regarding what constitutes a conflict of interest, it is always the case that one of the COE vignettes used in the training focuses on a conflict of interest situation involving a credit decision. Those who do not attend the training in person are required to submit a written response to the COE vignettes by year end.”

“Form 990, Part VI, Line 15 PER DELEGATION OF THE FULL BOARD OF DIRECTORS EACH YEAR, THE ROOT CAPITAL BOARD OF DIRECTORS' GOVERNANCE COMMITTEE REVIEWS THE CEO'S PERFORMANCE AND COMPENSATION ANNUALLY AND RECOMMENDS A SALARY FOR APPROVAL BY THE EXECUTIVE COMMITTEE OF THE BOARD. THIS POWER IS DELEGATED TO THE EXECUTIVE COMMITTEE BY THE BOARD SINCE THE FIRST QUARTER BOARD MEETING OCCURS PRIOR TO SALARY ADJUSTMENTS EACH YEAR. THE CEO'S SALARY RECOMMENDATION IS SUPPORTED BY A COMPENSATION STUDY PERFORMED BY AN OUTSIDE COMPENSATION EXPERT EVERY TWO YEARS. DOCUMENTATION OF THE DELIBERATION AND DECISION IS FILED IN THE CEO'S PERSONNEL FOLDER. Compensation of other officers and key employees is determined by the CEO of the organization using the results of a compensation survey conducted on an annual basis. Salaries for all staff, including the CEO, were last reviewed in April 2014.”

“Form 990, Part VI, Line 19 The Organization's audited financials are available on its website. Governing documents and the conflict of interest policy are available upon request.”

“Form 990, Part XI, Line 9 Foreign Currency Exchange Loss: ($622,016) Consolidation of foreign affiliate financials reported on Form 990: ($28,598) ---------- Total ($650,614)”