2020-09-30T13:53:03-05:00 2019-12-31 263753134 CBIZ MHM LLC 500 BOYLSTON STREET BOSTON MA 02116 990 2019-01-01 043478123 ROOT CAPITAL INC ROOT 6176615792 130 BISHOP ALLEN DRIVE 2ND FLOOR CAMBRIDGE MA 021393309 BRYAN WOLINER CFO & TREASURER 6176615792 2020-09-28 1 BRENDA L BOOTH P01342395 6177610600 2020-09-28 207.172.72.163 2020-09-28 11:47:01 ED P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 AAFE5242E44AA74A98A743050A15125E154A43A4 2019 2021-01-29 14:40:06Z WILLIAM F FOOTE 130 BISHOP ALLEN DRIVE 2ND FLOOR CAMBRIDGE MA 021393309 29111728 0 X WWW.ROOTCAPITAL.ORG X 1999 MA A NON-PROFIT ORGANIZATION THAT HELPS INCREASE INCOME AND STABILITY FOR RURAL FARMERS DISCONNECTED FROM THE FORMAL ECONOMY. 15 14 52 18 0 0 14068743 21446858 7850854 6972914 -5818 373034 361941 80783 22275720 28873589 549685 163153 0 0 8569288 8525596 0 0 579907 13964504 12791580 23083477 21480329 -807757 7393260 90858790 99271192 75139983 69985354 15718807 29285838 X ROOT CAPITAL SEEKS TO INCREASE INCOMES AND STABILIZE EMPLOYMENT FOR FARMERS IN AFRICA, SOUTH-EAST ASIA, AND LATIN AMERICA. ROOT CAPITAL DOES THIS THROUGH A PROVEN CHANNEL: SUPPORT FOR AGRICULTURAL BUSINESSES THAT COLLECT AND MARKET THE CROPS OF THOUSANDS OF FARMERS. 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. 0 0 11929348 5900 7053697 ROOT CAPITAL PROVIDES AGRICULTURAL BUSINESSES WITH A UNIQUE COMBINATION OF CAPITAL, TRAINING AND ACCESS TO GLOBAL MARKETS TO HELP THEM GROW. THESE CORE ACTIVITIES COMPRISE A THREE-PRONG STRATEGY: FINANCE, ADVISE, CATALYZE. PLEASE REFER TO THE ORGANIZATION'S WEBSITE FOR FURTHER INFORMATION AND STATISTICS ON PROGRAM ACCOMPLISHMENTS.FINANCE: ROOT CAPITAL TYPICALLY PROVIDES LOANS RANGING FROM $50,000 TO $3 MILLION TO RURAL SMALL AND GROWING BUSINESSES, ESPECIALLY THOSE BUSINESSES NOT CURRENTLY REACHED BY COMMERCIAL LENDERS.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 INEQUIPMENT 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. 4750201 146917 ADVISE: ROOT CAPITAL'S ADVISORY SERVICES PROGRAM PROVIDES TARGETED FINANCIAL TRAINING TO CURRENT AND PROSPECTIVE CLIENTS SO THEY HAVE THE FINANCIAL MANAGEMENT SKILLS THEY NEED TO GROW AND SUSTAIN THEIR BUSINESSES. ROOT CAPITAL'S FINANCIAL ADVISORY SERVICES (FAS)ARE DESIGNED TO PREPARE BUSINESSES WITH GROWTH POTENTIAL TO QUALIFY FOR CREDIT, TO SHEPHERD MORE PROSPECTIVE CLIENTS INTO OUR PORTFOLIO, AND TO MITIGATE THE RISK OF LENDING TO THESE BUSINESSES.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.ROOT CAPITAL PROVIDES TRAINING TO OUR CLIENTS ON FINANCIAL MANAGEMENT, AGRONOMIC PLANNING AND MONITORING, LOAN APPLICATION SUPPORT, FINANCIAL INSTITUTION (FI) ADVISORY AND MOBILE TECHNOLOGY. 758912 10336 CATALYZE: ROOT CAPITAL, INC. SEEKS TO CATALYZE A THRIVING FINANCIAL MARKET TO SUPPORT HISTORICALLY UNDERSERVED RURAL SMALL AND GROWING BUSINESSES. THE PROGRAM'S STRATEGY IS TO:- INNOVATE - CONDUCT R&D, STUDY IMPACT AT THE HOUSEHOLD AND BUSINESS LEVELS, AND LOOK FOR WAYS TO INCREASE IMPACT.- ACCELERATE - SHARE LEARNING FROM WORK WITH LIKE-MINDED PEERS TO BUILD COMMON STANDARDS AND PRACTICES NECESSARY FOR THE INDUSTRY TO THRIVE AND SCALE.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 UNIQUE BUYERS OF AGRICULTURAL AND OTHER SUSTAINABLE PRODUCTS WORLDWIDE INCLUDING COMPANIES SUCH AS COOPERATIVE COFFEES, ANDEAN NATURALS, GEPA, STARBUCKS, KEURIG GREEN MOUNTAIN, AND EQUAL EXCHANGE.COMMUNITY SUSTAINABILITY - FARMER ASSOCIATIONS ENCOURAGE PARTICIPATORY DECISION-MAKING AND ARE A SOURCE OF COMMUNITY OWNERSHIP AND PRIDE. THEY ALSO STEM MIGRATION TO URBAN AREAS BY MAKING TRADITIONAL AGRICULTURAL ACTIVITIES MORE VIABLE. SOCIAL IMPACT INCLUDES STABILIZING INCOMES IN RURAL COMMUNITIES AND CREATING NEW ECONOMIC OPPORTUNITIES FOR WOMEN, INDIGENOUS PEOPLES AND OTHER MARGINALIZED GROUPS.ENVIRONMENTAL SUSTAINABILITY - ROOT CAPITAL CLIENTS TYPICALLY PROVIDE FARMERS WITH TRAINING IN SUSTAINABLE PRODUCTION TO AVOID DEFORESTATION, REDUCE CHEMICAL USE, IMPROVE WATER AND SOIL MANAGEMENT, AND OTHERWISE PROTECT THE HEALTH OF RURAL ECOSYSTEMS. 17438461 1 1 0 0 0 0 0 0 1 0 1 0 1 0 1 1 0 1 0 1 1 1 0 0 0 0 0 0 0 1 0 0 0 1 0 0 0 0 0 0 0 0 0 1 1 0 0 0 1 X 206 0 1 52 1 0 1 CS GT KE MX NU PE SG 0 0 0 0 0 0 0 0 0 0 X 15 14 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 AL AK AR CA CO CT DC FL GA IL KS KY ME MD MA MI MN MS NV NH NJ NM NY NC ND OH OK OR PA RI SC TN UT VA WA WV WI X X BRYAN WOLINER 6172992424 130 BISHOP ALLEN DRIVE 2ND FLOOR CAMBRIDGE MA 021393309 ANA ZACAPA CHAIR (AS OF 1/2019) 1.00 0.00 X X 0 0 0 JEREMY MINDICH CHAIR (THRU 1/2019) 1.00 0.00 X X 0 0 0 PHILIP MARTIN BROWN BOARD MEMBER 1.00 0.00 X 0 0 0 PEGGY CLARK BOARD MEMBER 1.00 0.00 X 0 0 0 FRANZ COLLOREDO-MANSFELD BOARD MEMBER 1.00 0.00 X 0 0 0 DANIEL CRISAFULLI BOARD MEMBER 1.00 0.00 X 0 0 0 JACK TAYLOR BOARD MEMBER 1.00 0.00 X 0 0 0 EUGENE WEIL BOARD MEMBER 1.00 0.00 X 0 0 0 GRANT GUND BOARD MEMBER 1.00 0.00 X 0 0 0 JAN-MAARTEN MULDER BOARD MEMBER 1.00 0.00 X 0 0 0 MARY BARTON DOCK BOARD MEMBER 1.00 0.00 X 0 0 0 CD GLIN BOARD MEMBER 1.00 0.00 X 0 0 0 LINDSAY BOLGER BOARD MEMBER (AS OF 9/2019) 1.00 0.00 X 0 0 0 MARISSA WESELY BOARD MEMBER (AS OF 9/2019) 1.00 0.00 X 0 0 0 JAMES BENENSON III BOARD MEMBER 1.00 0.00 X 0 0 0 SIMON WINTER BOARD MEMBER (THRU 2/2019) 1.00 0.00 X 0 0 0 MELISSA DANN BOARD MEMBER (THRU 2/2019) 1.00 0.00 X 0 0 0 RICK PEYSER BOARD MEMBER 1.00 0.00 X 0 0 0 WILLIAM FOOTE PRESIDENT & CEO 40.00 0.00 X 288272 0 17286 BRYAN WOLINER CFO/TREASURER 40.00 0.00 X 180318 0 28302 MARLI PORTH CHIEF OF STAFF/CLERK 40.00 0.00 X 95208 0 3808 JARED CHASE CFO/TREASURER (UNTIL 4/2019) 40.00 0.00 X 51020 0 3559 NANCY EVERETT GENERAL COUNSEL & INTERIM COO 40.00 0.00 X 188117 0 18171 STEVEN NOCKA CHIEF LENDING OFFICER 40.00 0.00 X 179785 0 27667 AMY MULLEN CHIEF DEVELOPMENT OFFICER 40.00 0.00 X 168380 0 12785 JEAN FORRESTER CONTROLLER 40.00 0.00 X 172208 0 27797 DARCY SALINGER CHIEF CREDIT OFFICER 40.00 0.00 X 167151 0 6686 BENJAMIN WITKOP HEAD OF LENDING, WEST AFRICA & ASIA 40.00 0.00 X 120993 0 5403 CHRISTOPHER ENGSTROM SR CREATIVE DIRECTOR 40.00 0.00 X 115175 0 26676 ALEXANDRA TUINSTRA CHIEF PROGRAM OFFICER 40.00 0.00 X 123667 0 0 1850294 0 178140 12 0 1 0 GRANT THORNTON 75 STATE STREET 13 BOSTON MA 02109 AUDIT AND TAX 131962 1 1202900 20243958 21446858 LOAN INTEREST 522298 3820758 3820758 LOAN GUARANTEES AND RECOVERIES 522298 1813650 1813650 LOAN FEES 522298 1321379 1321379 LOAN MANAGEMENT SERVICES 522298 17127 17127 6972914 373774 373774 237399 238139 -740 -740 -740 CONTRACTED REVENUE REIMBURSEMENTS 900099 78551 78551 2232 2232 80783 28873589 7053697 0 373034 3750 3750 159403 159403 1474504 573505 707195 193804 5701183 4031354 1465632 204197 123218 95586 25249 2383 730762 595503 99931 35328 495929 363390 116778 15761 247169 73019 174150 163445 9134 154311 2420989 2202907 193082 25000 17836 8539 9297 293756 104385 189347 24 621762 106118 515644 949934 670169 237459 42306 1358286 1181823 131605 44858 399587 393117 6470 1500168 1500168 288246 193074 95172 78932 1675 77257 ALLOWANCE FOR LOAN LOSS 4252424 4252424 LOAN ORIGINATION COSTS 106497 106497 PRINTING & PUBLICATIONS 92549 57423 35126 SHARED COST ALLOCATIONS 0 755498 -771744 16246 21480329 17438461 3461961 579907 14325029 17656775 25031999 22692277 3088061 13494601 3015673 650328 71923 0 598299 772641 1549458 643938 1141275 905520 258862 270411 42212773 42326410 1114896 502229 90858790 99271192 2149089 1799731 2483085 0 91345 2827678 125000 100000 70191661 65150830 99803 107115 75139983 69985354 X 11134002 14647481 4584805 14638357 15718807 29285838 90858790 99271192 X 7393260 19704 6154067 X 0 1 X 1 1 1 X 6528783 8283243 11510919 14068743 21446858 61838546 6528783 8283243 11510919 14068743 21446858 61838546 18231026 43607520 94009 108868 112649 225123 373774 914423 37635 37635 62790604 49926546 0.69450 0.85880 X SCHEDULE A, PART II, LINE 10, EXPLANATION OF OTHER INCOME: OTHER REVENUE - 2016 AMOUNT: $ 37,635. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 X 117728 50189 67539 123947 108209 15738 1307783 485540 822243 905520 LOANS RECEIVABLE 42326410 F 42326410 DEFERRED RENT LIABILITY 83205 FAIR VALUE OF FOREIGN CURRENCY HEDGES 23910 107115 X 23206230 19704 172026 -5859089 -5667359 28873589 0 28873589 15793266 172026 172026 15621240 5859089 5859089 21480329 PART IV, LINE 2B: AT TIMES, ROOT CAPITAL CO-LENDS WITH OTHER ORGANIZATIONS AND ADMINISTERS THE ENTIRE LOAN. CREDIT COUNSELING AND DEBT MANAGEMENT SERVICES ARE PROVIDED BY THE CO-LENDER. IN MANY LOCATIONS, ROOT CAPITAL BEARS THE RESPONSIBILITY TO CREATE A TRIANGULATED PARTNERSHIP BETWEEN THE CO-LENDER, BORROWER, AND COMMERCIAL BUYER. THIS CREATES AN ADDED MEASURE OF SECURITY FOR ROOT CAPITAL'S CLIENTS BY ENSURING THAT THEIR PRODUCTS CAN BE SOLD AT A FAIR PRICE, AND HELPS BUYERS CONTRIBUTE TO THE LOCAL ECONOMIES. THE ESCROW FUNDS REPRESENT A TIMING DIFFERENCE BETWEEN REPAYMENTS FROM BORROWERS AND TRANSFER OF FUNDS DUE TO CO-LENDING PARTNERS. THE ESCROW ACCOUNT IS ALSO USED WHEN A BUYER PAYS ROOT CAPITAL THE FULL AMOUNT OF THE MONEY OWED TO A SUPPLIER/BORROWER. ROOT CAPITAL DEDUCTS THE PRINCIPAL AND INTEREST OWED ON ITS LOAN AND FORWARDS THE REMAINING BALANCE TO THE SUPPLIER/BORROWER. PART X, LINE 2: ROOT CAPITAL IS EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE, AND ACCORDINGLY, IS GENERALLY EXEMPT FROM FEDERAL AND STATE INCOME TAXES. ACCORDINGLY, NO PROVISION FOR INCOME TAXES IS MADE IN THE COMBINED FINANCIAL STATEMENTS. ROOT CAPITAL HAS DETERMINED THAT ITS STATUS AS A TAX EXEMPT ENTITY AND ITS DETERMINATIONS AS TO ITS INCOME BEING RELATED AND UNRELATED ARE NOT UNCERTAIN TAX POSITIONS WITHIN THE MEANING OF GENERALLY ACCEPTED ACCOUNTING PRINCIPLES FOR ITS OPEN TAX YEARS. ROOT CAPITAL'S FEDERAL AND STATE INCOME TAX RETURNS ARE GENERALLY OPEN FOR EXAMINATION FOR THREE YEARS FOLLOWING THE DATE FILED. PART XI, LINE 2D - OTHER ADJUSTMENTS: PROVISION FOR LOAN LOSS -4,252,424. INTEREST EXPENSE -1,500,168. ORIGINATION FEES -106,497. PART XII, LINE 4B - OTHER ADJUSTMENTS: PROVISION FOR LOAN LOSS 4,252,424. INTEREST EXPENSE 1,500,168. ORIGINATION FEES 106,497. 1 SUB-SAHARAN AFRICA 2 26 PROGRAM SERVICES LOAN DISBURSEMENTS 26602092 SOUTH AMERICA 1 16 PROGRAM SERVICES LOAN DISBURSEMENTS 43429512 CENTRAL AMERICA AND THE CARIBBEAN 1 17 PROGRAM SERVICES LOAN DISBURSEMENTS 40102452 NORTH AMERICA 1 9 PROGRAM SERVICES LOAN DISBURSEMENTS 5942925 EAST ASIA AND THE PACIFIC 0 0 PROGRAM SERVICES LOAN DISBURSEMENTS 4951008 CENTRAL AMERICA AND THE CARIBBEAN 0 0 PROGRAM SERVICES LENDING AND ADVISORY SERVICES 1559858 NORTH AMERICA 0 0 PROGRAM SERVICES LENDING AND ADVISORY SERVICES 615890 SOUTH AMERICA 0 0 PROGRAM SERVICES LENDING AND ADVISORY SERVICES 1991596 SUB-SAHARAN AFRICA 0 0 PROGRAM SERVICES LENDING AND ADVISORY SERVICES 3220463 SUB-SAHARAN AFRICA 0 0 GRANTMAKING LENDING AND ADVISORY SERVICES 62003 SOUTH AMERICA 0 0 GRANTMAKING LENDING AND ADVISORY SERVICES 65000 EAST ASIA AND THE PACIFIC 0 0 GRANTMAKING LENDING AND ADVISORY SERVICES 5900 NORTH AMERICA 0 0 GRANTMAKING LENDING AND ADVISORY SERVICES 5000 CENTRAL AMERICA AND THE CARIBBEAN 0 0 GRANTMAKING LENDING AND ADVISORY SERVICES 21500 5 68 0 0 5 68 125195333 3379866 128575199 SUB-SAHARAN AFRICA AGRICULTURAL 20000 WIRE SUB-SAHARAN AFRICA AGRICULTURAL 20000 WIRE SUB-SAHARAN AFRICA AGRICULTURAL 11667 WIRE SUB-SAHARAN AFRICA AGRICULTURAL 10336 WIRE SOUTH AMERICA AGRICULTURAL 5000 WIRE SOUTH AMERICA AGRICULTURAL 5000 WIRE SOUTH AMERICA AGRICULTURAL 5000 WIRE SOUTH AMERICA AGRICULTURAL 5000 WIRE SOUTH AMERICA AGRICULTURAL 5000 WIRE SOUTH AMERICA AGRICULTURAL 5000 WIRE SOUTH AMERICA AGRICULTURAL 5000 WIRE SOUTH AMERICA AGRICULTURAL 5000 WIRE SOUTH AMERICA AGRICULTURAL 5000 WIRE SOUTH AMERICA AGRICULTURAL 5000 WIRE SOUTH AMERICA AGRICULTURAL 5000 WIRE SOUTH AMERICA AGRICULTURAL 5000 WIRE SOUTH AMERICA AGRICULTURAL 5000 WIRE CENTRAL AMERICA AND THE CARIBBEAN AGRICULTURAL 10000 WIRE CENTRAL AMERICA AND THE CARIBBEAN AGRICULTURAL 5000 WIRE CENTRAL AMERICA AND THE CARIBBEAN AGRICULTURAL 5000 WIRE NORTH AMERICA AGRICULTURAL 5000 WIRE 0 21 0 0 1 0 0 0 PART I, LINE 2: ROOT CAPITAL IS RESPONSIBLE FOR THE ACTIONS OR INACTIONS OF ITS SUBRECIPIENTS AS STIPULATED UNDER THE AGREEMENTS. THE MONITORING OF SUBRECIPIENTS IS AN EXTREMELY IMPORTANT PART OF SUBPROJECT MANAGEMENT TO ENSURE THAT THE SUBGRANTEE IS PERFORMING IN ACCORDANCE WITH THE AGREEMENT, STANDARD OPERATING PROCEDURE AND IN FURTHERANCE OF THE PROJECT OBJECTIVES. A VARIETY OF TOOLS ARE UTILIZED TO MONITOR SUBGRANTEES. THESE INCLUDE: - TIMELY AND THOROUGH REVIEW OF FINANCIAL AND PROGRAMMATIC SUBGRANTEE REPORTS - PERIODIC AND ON-SITE VISITS - REGULAR AND ONGOING COMMUNICATION WITH SUBGRANTEE - INTERNAL AND/OR EXTERNAL AUDITS PATHFINDER CONDUCTS PRE-AWARD AND PERIODIC RISK ASSESSMENTS OF THE SUBRECIPIENTS. DEPENDING ON THE RESULTS, A MONITORING PLAN TOGETHER WITH AN APPROPRIATE MECHANISM FOR FUNDING, FINANCIAL AND PROGRAMATIC MANAGMENT AND MONITORING IS FORMULATED. PART I, LINE 3: THE EXPENDITURES, PER REGION, ARE PRESENTED ON THE ACCRUAL BASIS OF ACCOUNTING. PART III ACCOUNTING METHOD: X X X X X 0 0 0 0 0 0 0 1 0 WILLIAM FOOTE PRESIDENT & CEO 288272 0 0 0 0 0 11200 0 6086 0 305558 0 0 0 BRYAN WOLINER CFO/TREASURER 145818 0 34500 0 0 0 6438 0 21864 0 208620 0 0 0 NANCY EVERETT GENERAL COUNSEL & INTERIM COO 178614 0 9503 0 0 0 7580 0 10591 0 206288 0 0 0 STEVEN NOCKA CHIEF LENDING OFFICER 174385 0 5400 0 0 0 4370 0 23297 0 207452 0 0 0 AMY MULLEN CHIEF DEVELOPMENT OFFICER 156155 0 12225 0 0 0 5093 0 7692 0 181165 0 0 0 JEAN FORRESTER CONTROLLER 159159 0 13049 0 0 0 7047 0 20750 0 200005 0 0 0 DARCY SALINGER CHIEF CREDIT OFFICER 162283 0 4868 0 0 0 6686 0 0 0 173837 0 0 0 PART I, LINE 7 NONFIXED PAYMENTS REPRESENT BONUSES IN RECOGNITION OF THE ADDITIONAL REPORTING REQUIREMENTS FOR BOTH THE INTERIM COO AND CFO. OTHER OFFICERS RECEIVED DISCRETIONARY BONUSES DETERMINED BY THE BOARD MEMBERS. JACK TAYLOR BOARD MEMBER INVESTMENT X 100000 100000 0 0 1 100000 PART II A BOARD MEMBER EXTENDED A LOAN TO ROOT CAPITAL, INC. THIS LOAN IS DOCUMENTED IN A WRITTEN AGREEMENT BETWEEN THE ORGANIZATION AND THE BOARD MEMBER AND THE TERMS ARE NEGOTIATED AT ARM'S LENGTH, AND INDEPENDENTLY FROM THE INDIVIDUAL'S ROLE AT ROOT CAPITAL. THE LOAN IS MADE WITHIN THE USUAL PARAMETERS OFFERED TO ALL INVESTORS. FORM 990, PART VI, SECTION B, 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 CONTROLLER, CHIEF FINANCIAL OFFICER AND PRESIDENT. PRIOR TO FILING, THE COMPLETE FORM 990 IS PROVIDED TO ALL VOTING MEMBERS OF THE BOARD OF DIRECTORS WITH OPPORTUNITY FOR QUESTIONS, COMMENTS, OR EDITS. THE BOARD OF DIRECTORS IS GIVEN 10 DAYS TO REVIEW AND COMMENT ON THE FORM 990. ANY CHANGES ARE INCORPORATED IN THE FINAL FORM 990 WHICH IS FILED WITH THE IRS. FORM 990, PART VI, SECTION B, 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. 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. THE GOVERNANCE COMMITTEE'S CONVERSATION AND DECISION WITH RESPECT TO THE CONFLICT IS RECORDED IN THE MINUTES OF THE MEETING AND SHARED WITH THE FULL BOARD. ALL ROOT CAPITAL PERSONNEL ARE TRAINED ON THE CONFLICT OF INTEREST POLICY. ROOT CAPITAL'S CONFLICT OF INTEREST POLICY IS SHARED WITH THE PARTICIPANTS AND PARTICIPANTS ARE ASKED TO SIGN AN ACKNOWLEDGEMENT FORM ATTESTING THAT THEY HAVE READ THE POLICIES AND COMPLETED THE TRAINING. FORM 990, PART VI, SECTION B, 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. THE CEO'S SALARY RECOMMENDATION IS SUPPORTED BY A COMPENSATION STUDY PERFORMED BY AN OUTSIDE COMPENSATION EXPERT EVERY TWO YEARS. 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. FORM 990, PART VI, SECTION C, LINE 19 ROOT CAPITAL MAKES ITS FORM 990 AVAILABLE TO THE PUBLIC BY RETAINING A COPY AT ITS PLACE OF BUSINESS AND ON ITS WEBSITE, WWW.ROOTCAPITAL.ORG. THE FORM 990 IS LIKEWISE PUBLISHED ON THE INTERNET AT WWW.GUIDESTAR.ORG. THE ORGANIZATION'S FINANCIAL STATEMENTS ARE MADE AVAILABLE ON ITS WEBSITE. THE ORGANIZATION'S GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY ARE NOT ORDINARILY MADE AVAILABLE TO THE PUBLIC, BUT, IF REQUESTED, WILL BE PROVIDED AT MANAGEMENT'S DISCRETION. FORM 990, PART XI, LINE 9: CUMULATIVE IMPACT OF CHANGE IN ACCOUNTING PRINCIPLES 6,154,067. ROOT CAPITAL MEXICO AC MA ADELINA FLORES NO 20 COLO CHIAPA MX PRGM SUPPORT MX ROOT CAPITAL INC 1 ASOCIACION ACCDER AV CAMINO REAL 348 TERRA EL P LIMA PE PRGM SUPPORT PE ROOT CAPITAL INC 1 ROOT CAPITAL GUATEMALA AC 22 AVENIDA 3-87 ZONA 3 EDIFIC QUETZALTENAGO GT PRGM SUPPORT GT ROOT CAPITAL INC 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 ROOT CAPITAL MEXICO AC P 520987 FMV ASOCIACION ACCDER P 1690745 FMV PART II FOREIGN CONTROLLED SUBSIDIARIES THE ROOT CAPITAL FORM 990 PRESENTS THE CONSOLIDATED INFORMATION OF ITS FOREIGN CONTROLLED SUBSIDIARIES (AS DISCLOSED IN SCHEDULE R, PART II) THEREBY REPORTING THE ORGANIZATION'S WORLDWIDE ACTIVITIES CONSISTENTLY WITH ITS AUDITED FINANCIAL STATEMENTS.