Root Capital Inc.

“Form 990, Part III, Line 1 THROUGH A UNIQUE COMBINATION OF CAPITAL, TRAINING, AND ACCESS TO GLOBAL MARKETS, ROOT CAPITAL HELPS AGRICULTURAL BUSINESSES INCREASE FARMER INCOMES, WHICH IN TURN IMPROVES FOOD SECURITY, EMPOWERS WOMEN, CONSERVES ECOSYSTEMS, AND ENCOURAGES THE NEXT GENERATION OF FARMERS. SINCE 1999, ROOT CAPITAL HAS DISBURSED MORE THAN $945 MILLION IN CREDIT TO MORE THAN 620 ENTERPRISES. COLLECTIVELY, THESE ENTERPRISES HAVE GENERATED $7 BILLION IN REVENUE, MORE THAN 80 PERCENT OF WHICH HAS BEEN PAID DIRECTLY TO FARMERS. IN CALENDAR YEAR 2015, ROOT CAPITAL DISBURSED $154 MILLION TO 277 SMALL AND GROWING BUSINESSES (SGBS) WHO REPRESENT MORE THAN 550,000 FARM HOUSEHOLDS IN AFRICA, South-east ASIA, AND LATIN AMERICA. PRogram service accomplishments, continued Finance Form 990, Part III, Line 4a Most Root Capital loans can be categorized as follows: 1) Lines of credit, which are used by borrowers to cover costs of purchasing raw product from their farmer suppliers. These lines of credit have terms of up to one year and are generally oriented around a harvest or production cycle. 2) Fixed-asset loans with terms of up to seven years for investment in equipment and infrastructure. 3) General working capital loans with terms from one to seven years. 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. advise Form 990, Part III, Line 4b Though financial management training is the core offering of the organization's Advisory program, Root Capital also provides complimentary non-financial services, such as partnership-based training in agronomy. In 2015, Root Capital trainers provided 2,500 days of training to our clients on financial management, agronomic planning and monitoring, loan application support, financial institution (FI) advisory and mobile technology. Since its launch in 2006, Root Capital's Advisory services program has successfully trained 811 producer organizations representing thousands of people. 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. Since 1999, Root Capital has worked with 525 unique buyers of agricultural and other sustainable products worldwide. In 2015, Root Capital worked with 180 unique buyers, including companies such as Cooperative Coffees, Andean Naturals, GEPA, Starbucks, Keurig Green Mountain, and Equal Exchange. In 2015, Root capital clients spent $980”

“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 Curent COO 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 reviewed in the last quarter of 2015 and first quarter of 2016.”

“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: ($1,476,403)”

“Description:professional program support total fees:2616218”