Shotgun Players Inc.

“Line of Credit Board Member: On April 1, 2014, Shotgun entered into a line of credit agreement with a board member for a credit limit of $430,000. The first interest rate is 1.89% per annum from May 1, 2014 through April 30, 2016. The second interest rate is 5.0% per annum from May 1, 2016 through the maturity date of November 1, 2022. Principal and interest are due monthly based on a 30-year amortization schedule. The outstanding balance was $181,500 at January 31, 2016.Loan Payable to Related Party (Ashby Theater): Shotgun is obligated under a loan payable to a related party (a family member of the Artistic Director). Proceeds from the mortgage were used to purchase the land and building at 1901 Ashby Avenue in Berkeley in which the Shotgun offices and theater are located. The loan originated in 2005 for $1,100,000, is unsecured, and has an estimated maturity date of December 1, 2023. The current rate on the mortgage is 2.0% per annum and is payable in interest only annual installments. The outstanding balance was $247,982 at January 31, 2016.Ashby Theater Loan Board Member: On September 19, 2014, Shotgun entered into a promissory note with a board member for $795,000 which is secured by a deed of trust on the land and building at Ashby Avenue in Berkeley, California. The note bears interest at 3% per annum through October 31, 2024 at which time a floating interest rate applies which is equal to prime rate (as published in the Wall Street Journal). The monthly payments of principal and interest were $1,171 through September 2014 and $3,768 through the maturity of the loan. The loan matures on September 18, 2039. The outstanding balance was $765,953 at January 31, 2016.”

“Form 990 is prepared by an outside tax professional. The form is then reviewed by the Organization's management, a member of the Board of Directors, and the Executive Director. This group of individuals then discusses the contents of the return with the outside tax professional. After a full review (with modifications where necessary), the final version of the tax return is provided to all members of the Organization's voting body. A representative of management authorizes the final Form 990 which is then e-filed with the Internal Revenue Service.”

“Members of the Board of Directors review all potential conflicts of interest at least annually. All personnel and board members are required to disclose potential conflicts and any related party affiliations. Loans from the Organization to members of management and the Board are strictly prohibited. The Organization seeks full transparency on all related party transactions. Any potential conflicts of interest (in fact or appearance) are discussed openly and resolved in accordance with the Organization's policies and procedures.”

“Members of the Board of Directors review the compensation of all high-level personnel periodically in accordance with IRS rules and regulations. Efforts are made to secure compensation data from industry sources in order to determine competitiveness and appropriateness of salaries. Every effort is made to ensure that the process is thorough and transparent in accordance with IRS guidelines and the Organization's policies and procedures.”

“Compensation of other high-level personnel and key employees is reviewed periodically by members of management. Efforts are made to secure compensation data from industry sources in order to determine competitiveness and appropriateness of salaries and all related benefits. All decisions are then documented in personnel files.”

“All of the organization's governing documents, financial statements and other legal filings are maintained in a secure environment and held available for inspection by tax authorities and the general public. Tax returns are posted annually to www.guidestar.org (where they are available for viewing as electronic copies) and are also available for a physical inspection at the Organization's office in San Francisco, California.”

“Change in present value of long-term receivables = $1708”