TABLE OF CONTENTS

3. EXECUTIVE SUMMARY
4. FINANCIAL OVERVIEW
5. DEAL STRUCTURE
6. MISSION STATEMENT
7 – 8. CALTURAS CAPITAL TEAM
9 – 15. THE ASSET
16 – 28. OLIVE INDUSTRY
29 –32. FINANCIALS
33. CONTACT INFORMATION

2
EXECUTIVE SUMMARY
Calturas Capital LLC is ple ase d to anno unce an o p p o r t u n i t y to inve st in two olive orchards located in
Sacramento Valley, which is centrally located between Chico, Red Bluff, and Orland. Under our ste w ar dship and
c o llabo r atio n w ith Engle har dt Ag Se r vice s, the property will reach full production within three (3) years, thus
offering investors cash flow, tax benefits, and appreciation.

HIGHLIGHTS
1) 16.06% IRR - Cash on Cash Return (excludes return on tax savings)
2) Highly desirable ± 354 acre olive ranches
3) Purchase price below replacement value
4) Excellent source for tax write-offs year 1
5) Investment includes two (2) separate farms diversifying risk
6) Demand for California Extra Virgin Olive Oil continues to grown at an accelerated pace throughout the USA
and Internationally
7) Consumption of olive oil and olive biproducts are increasing in demand globally
8) The United States offers the greatest room for market growth with approximately five percent (5%) of the US
consumption coming from domestic orchards and 95% imported from overseas (California is the largest
domestic producer)
9) Agriculture is an effective hedge against inflation

We appr e c iate your inte r e st in this o p p o r t u n i t y and look f o r w a r d to f u r t h e r discussion on the

inve stm ent.

Co r dially,

Xavie r C Santana B o yd S. Wo o dar d

CEO , Managing Par tne r CFO , Managing Par tne r
3
FINANCIAL OVERVIEW

Targeted Investor IRR: 16.01 %

(Cash-on Cash return excludes tax savings)

Est. Return from tax savings: 3.08 %
Total Return: 17.37 %

Targeted Equity Multiple: 1.78x

Targeted Investment Period: 5 years

____________________________________________
Property Type: Agriculture
Investment Profile: Value-Add

Property Level IRR: 21.95 %

Sponsor Co-Investment $: $ 150,000

Sponsor Co-Investment %: 5% of total equity

Cash-On-Cash Return
____________________________________________
Over 5 Years
Subscriptions Due: May 20th, 2021

Funds Due: May 27th, 2021 Contribution (100,000)

Distribution Commencement: Q1, 2024 Distributions 178,000
Minimum Investment: $50,000 Profit 78,000
Total Equity Raise: $3,015,000
*Tax Savings assumes investor based in CA has Passive Income in the highest tax bracket equal to the investment tax
deductions. Calturas is not a tax advisor and recommends investors consult their tax advisor.

4
DEAL STRUCTURE
Capital Stack: $3,015,000 Equity 40%

Capital Partners (LP)

$2,865,000 95%

Calturas (GP)
$150,000 5%

$4,000,000 Debt 60% Investors

Own 100% of
$7,015,000 Total Capital 100% the Portfolio
Company
CASH FLOW DISTIRIBUTION*
Preferred return on unreturned Capital: 8%
Corning Olives 1, Calturas
Promote: IRR to investors Sponsor Promote LLC Capital
“PORTFOLIO Manager of
up to 8% Pro rata, then Pro rata Portfolio
COMPANY” Company
return of capital
8%-12% 20%
above 12% 30%
AES
Title to Farm Manager

*All pursuant to terms defined in LLC Operating Agreement Properties Contracted by

Portfolio Company

CALTURAS CAPITAL MANAGEMENT FEES

Management fee: 1% of AUM
Acquisition fee: 1% of Purchase Price
Development Fee: 5% of Development costs
Debt Financing: 1% of Loan
Disposition Fee: 1% of Sale Price

5
CALTURAS CAPITAL MISSION

“Providing Agricultural
Investments that offer stable
returns through implementation
of sustainable farming practices
and management”

6
CALTURAS CAPITAL TEAM
Calturas Capital is a private equity investment platform focused on sourcing investments that offer a competitive investment
advantage to our capital partners. Our investments are thoroughly investigated to meet core attributes that will weather most
economic cycles, provide cash flow, and offer substantial appreciation. Calturas engages industry leading operational partners to
leverage market knowledge for the benefit of the asset and our capital partners. Your team at Calturas Capital has a long history
with agriculture properties and are committed to protecting the land, its water, and the families that have built the central valley
farming community.
Xavier C. Santana Quinn Mulrooney
Managing Principal (Calturas Capital) Director of Agriculture Investments at
Northgate Commercial.
 25+ years of commercial real estate
experience.  In House Agricultural Consultant.
 Co-founder of Northgate Commercial and NAI  Agricultural Advisor.
Pence Capital.  2nd generational farmer.
 Co-founder of Kay Taylor Investments; a  15 years of diversified farming
private capital investment. experience.

EDUCATION EDUCATION
 Bachelor of Arts in Marketing from California  BS Agricultural Biology from
California State University,
State University, Sacramento
Stanislaus

Boyd S. Woodard
Managing Principal (Calturas Capital)

 U.S. and foreign-based operations management

for corporations and small businesses; electronics
and medical device industries.
 Retail business development throughout
California.
 Multigenerational farming family.

EDUCATION
 MBA from the University of California, Irvine
 MS Industrial & Technical Studies from Cal Poly
San Luis Obispo

7
FARM MANAGER
ADAM ENGLEHARDT, PRESIDENT
ENGLEHARDT AG SERVICES

AFFILIATIONS
 Vice Chairman of the California Department of Agriculture mandated Olive Oil Commission of
California (OOCC)
 Chairman Emeritus of the American Olive Oil Producers Association representing domestic olive
growers at the federal level.
QUALIFICATIONS
 5th generation California Farmer, specializing in the development, management, and harvest of olive
oil.
 Family has been growing and processing olives for oil in CA since 1998.
 Englehardt Ag Services leverages 20 years of experience gained through the development and
management of over 10,000 acres of olive orchards in the Sacramento Valley.
EXPERIENCE
 Vice President of Agriculture for California Olive Ranch from 2008 through 2014.
 Managed the expansion from 500 planted acres in 2008 to more than 10,000 acres of company
managed orchards and 6,000 acres of 3rd party contracted growers at the time of his departure.
 President and CEO of US operations for Boundary Bend Limited in 2014.
 From the formation of Boundary Bend (U.S.A. operating company) in May 2014 until his departure in
late 2019, Englehardt managed the acquisition and construction of a processing and bottling facility in
Woodland CA, acquisition of over 1,000 acres of land in Yolo County, and oversaw grower
relationships with contracted growers.
 Positioned Boundary Bend Limited as the 3rd largest olive oil handler in CA, while establishing their
private label as a brand leader in supermarkets in less than five years.
 Englehardt recognizes the demand for professional orchard management services as well as the
growing demand for California olive oil driving investor interest in olive plantings.

8
THE ASSET
PROPERTY FACTS
 Two separate parcels of land totaling ± 354 farmable acres
 ±7.5 miles separating the two farms
 Located in the Sacramento Valley
 Centrally located between Chico, Red Bluff, and Orland
 Water Source: Commercial Well - Red Bluff SGMA basin SGMA score of 20 (Medium Priority – No critical overdraft)
 Having multiple crop varieties provides risk mitigation against weather events during bloom and against alternate crop
cycles, providing diversification.

Site One
–
204 acres
Site Two
–
150 acres

9
THE ASSET

SITE ONE – HALL ROAD

 APN: 067-110-004
 ± 268.06 gross acres (204 Acres planted in Super High density)
 Arbequina Olives for oil
 Planted 13’x5’
 Well water with drip irrigation
 Olives planted in 2009 on previously irrigated pastureland
 This ranch would benefit from an aggressive hedging and
‘remediation’ program.

10
THE ASSET

SITE ONE – HALL ROAD

 Planted in Super High-Density
 Dominant growing method in CA
 Ease of mechanical harvest
 Limited to dwarfing varietals
 Facilitates high quality oil production

11
THE ASSET

SITE ONE – HALL ROAD TREE VARIATIONS

 Primary variety : Arbequina
 Pollinator varieties : Arbosana and Koroneiki
 Arbequina is the most dominant variety worldwide.
 These are standard super high-density olives that are harvested at the same time.

Arbequin Koroneik Arbosana

a i

12
THE ASSET

SITE TWO – RAWSON ROAD

 APN: 067-030-006
 ±150 Acres planted in High density
 Taggiasca, Hojiblanco, Ascolano, Moraiolo, Pendolino, Barnea, Coratina,
Piccual, Leccino, and Frantoio Olives
 Well water, drip irrigation
 New well and Variable frequency drive installed 2011
 Olives planted in 2012
 This ranch has 2 blocks that will be replanted, the rest will benefit from
updated pruning and hedging practices.

13
THE ASSET

SITE TWO – RAWSON ROAD

 Planted in High Density
 Drip Irrigation
 Wide selection of varietal options
 Harvest can be mechanized with nut shaker
or canopy contact harvester

14
THE ASSET

SITE TWO – RAWSON ROAD TREE VARIATIONS

 Taggiasca : Italian variety with more intense flavor profile, similar to Frantoio.
 Hojiblanca : Spanish variety, can be used for oil or table olive sales, very high-quality oil but with
lower oil yield.
 Ascolano : Spanish table or oil variety, very high-quality oil but lower oil yields.
 Coratina : most common Italian olive variety, very high yields with more alternate bearing.
 Picual : Spanish variety, most common oil production variety in the world. High consistent Ascolano
yields.
 Frantoio : Northern Italian variety, high oil yields.
 Leccino : Northern Italian variety, medium oil yields.

NOTES:
Coratina
Varieties to be removed - poorly suited to climate in Northern CA
Barnea, Pendalino, Moriolo

Frantoio

15
OLIVE INDUSTRY

AMERICAN OLIVE OIL FACTS

 There are approximately 45,000 acres of olives planted exclusively to produce olive oil in the United States.
 Olive oil is produced in California, Arizona, Texas, Georgia, Florida, Oregon, and Hawaii.
 These states produce about 5% of all the olive oil consumed in the U.S.
 The US consumers use 90 million gallons of olive oil annually; the largest market outside of Europe.

 Olive production was  Since 2000, planted

introduced to California by acreage dedicated to olive
Spanish missionaries oil production in CA has
grown to approximately
 Prior to 2000, olive production 30K acres
in California was focused on
table olive production for  Driven by positive
sales of California black ripe consumer conception,
olives demand for CA oil
surpasses available supply
 The Super High-Density (SHD)
growing method was  Increasing water use
introduced to CA in 2000 restrictions in CA has
increased grower interest
 SHD planting facilitated in olive production as olives
mechanization of harvest and use approximately 50% of
provided a low water use the water required by other
permanent crop option for popular permanent crops
growers

16
OLIVE INDUSTRY

The US is the largest single country consumer of olive oil worldwide!

 California produces 95% of the olives

grown in the U.S.
 The U.S. has the greatest resources
for growth.
 Historical production concentrated
in the European Union with top
producers being Spain, Greece, Italy,
Tunisia and Portugal.
 Most groves in historical production
regions are not irrigated, thus
producing alternating yields and low
productivity.
 Recent increase in plantings outside
of EU and traditional growing
regions to stabilize global supply.
 Global consumption increasing in
Northern Europe, U.S., Asia, and
non-EU markets, with greater
demand for California Extra Virgin
olive oil.

17
OLIVE INDUSTRY
HISTORICAL PRICING ON OLIVE OIL
$35.00

$30.00 $29.78
$28.02
$26.04
$25.00
$23.37
$22.52
$20.00 $20.73 $20.03 $20.14 $20.12
$19.39 $19.95
$18.61

$15.00

$10.00

$5.00

$0.00
2015 2016 2017 2018 2019 2020
Grower Price Per Gal. Avg. Sales Price Per Gal.

18
OLIVE INDUSTRY

SUSTAINABILITY
Olives are highly resilient and durable agricultural investment.

 Peak production achieved with approximately 2 acre feet of water per year
• 50-60% of the water required for other popular permanent crops in California
• If water is turned off the trees will not die, and you will not lose your investment.

 Low fertilizer requirements

• Less than 100 units of nitrogen per acre/year

 Low pest pressure compared to other permanent crops

• Reduced need for pesticide application
• Low Nitrogen and Nitrate

 Olives do not require bees for pollination

• No bees = $ Savings

 Fruit is not allowed to touch the ground

• Eliminates dust creation at harvest
• Eliminates phytosanitary and orchard floor cleanliness requirements
• Since olives are not harvested from the ground, you can have a cover crop all year around

 After initial orchard establishment, minimal hand labor requirements

• Mechanized pruning
• Mechanized harvest

 Once established, trees are not severely harmed from multiple years without irrigation
• In case of severe drought, yields will be reduced but no loss of orchard/capital investment

19
OLIVE INDUSTRY

SUSTAINABILITY CONTINUED…

Reduced Water Usage –

 Olive trees are on 100% drip irrigation, which is

the most efficient application method.
 Ensures that we use as little water as possible.
 This allows us to control nutrition to the and
minimize our amount of inputs.

Efficient Harvesting Techniques –

 For very efficient land use, we grow using high

and super high density planting.
 We use over the row mechanical harvesters to
reduce labor overhead.
 This also ensures that no olive fruit ever
touches the ground.

20
OLIVE INDUSTRY

CONSUMPTION TRENDS
California Extra Virgin Olive Oil Offers long term growth and investment stability.

21
OLIVE INDUSTRY

CONSUMPTION TRENDS CONTINUED…

 California olive oil is less than 5% of US retail consumption limited by available supply.
 Consumption of olive oil in the US is steadily increasing, driven by consumer preference
for healthy cooking oils.
 Growth of olive oil category is driven by growth of extra virgin and private label.
 Growth of extra virgin olive oil is largely driven by growth of the premium positioned
olive oil brands.
 Strong indication of increasing consumer preference of high-quality olive oil.
 US consumption in 2018-19 estimated at 87 million gallons.
 Approximately 65% of this consumption at the consumer retail level.
 Existing US demand far exceeds California supply
 Sales of olive oil increased substantially during the COVID-19 pandemic.

22
OLIVE INDUSTRY

REGULATIONS ON CALIFORNIA OLIVES

OLIVE OIL COMMISSION OF CALIFORNIA
The Olive Oil Commission of California (OOCC) was established and is funded by California olive oil farmers. California olive oil
handlers who produce 5,000 gallons or more are required by law to participate in the OOCC’s mandatory government
sampling and testing program. Producers with less than 5,000 gallons may voluntarily participate in the OOCC’s government
sampling program.
 Developing and enforcing standards for the purity and quality of California olive oil.
 Verifying California olive oil quality through mandatory government sampling and third-party analysis.
 Promoting simple, clear, accurate labels for California olive oil.
 Conducting research to assist farmers in successfully growing a healthy, sustainable crop.

THE OOCC EXISTS SO THAT:

 California olive oil is accurately labeled.
 Customers can have confidence in the quality of California olive oil.
 All California olive oil is trusted and valued.

23
OLIVE INDUSTRY

REGULATIONS ON CALIFORNIA OLIVES CONTINUED…..

UNDER THIS PROGRAM:
 A designated number of olive oil samples are collected by California Department of Food and Agriculture officials.
 Samples are sent to accredited third-party laboratories for sensory and chemical analysis.
 Results of the third-party analysis are provided back to the producers.
 In addition to the government sampling program, producers are responsible for having all of their remaining olive oil lots
tested by a private laboratory of their choosing.
 The verified grade must be accurately reflected on product labels for California olive oil.

LABEL TEST RESULTS

 Laboratory analysis shows that California producers are labeling their product with increasing accuracy.
 The percentage of labels verified to be consistent with the actual grade gradually increased for the first three years the
OOCC program was in operation.
 In 2017/18 92% of the olive oil samples collected by CDFA were consistent with the grade identified by the handlers own
testing.

24
OLIVE INDUSTRY

WHAT IS EXTRA VIRGIN OLIVE OIL?

EXTRA VIRGIN OLIVE OIL

Extra Virgin olive oil is the highest quality of olive oil available. Olive oil is considered extra virgin when
it has been produced by a simple pressing of the olives – without any other processes – which allows it
to provide the highest level of health benefits.

Olive oil, Pure and Light are three other common grades of olive oil found on store shelves in the
United States, and each has its own specific definition. They are:
 Olive Oil: Lesser quality olive oil, which has been refined through degumming, neutralization,
bleaching, and/or a deodorization processes; then blended with 5% to 15% extra virgin or virgin
olive oil.
 Pure and/or Light: Pure and light are marketing terms used for olive oil that has been refined and
mixed with a small amount of extra virgin or virgin olive oil. Light or Extra Light olive oil are lighter
in flavor, aroma and many times color than extra virgin olive oil but do not contain less calories.
 Sales of Olive Oil and Pure Olive Oil are declining in favor of Extra Virgin Olive Oil.

FIRST PRESS VS COLD PRESS

These terms are used by producers on their labels to emphasize that extra virgin olive oil is an
unrefined, natural product that has undergone a single, simple milling process – without heat or other
processing that could alter its quality.

25
OLIVE INDUSTRY

PRODUCT
Calturas Capital knows that there is truly a California extra
virgin olive oil for every palate.

The range of climates and olive varieties allows for blends unique to
California. These oils represent not only the incredible spectrum of
flavors available in the olive, but also the agricultural and
environmental diversity of California.

The quality and flavor of olive oil depend upon the quality and variety
of the olives; how quickly they are milled; and the milling process. With
olive oil, fresher is better … for both flavor and health!

Consumers deserve to know and trust:

 Where the olives were grown
 Their harvest date
 The “best by” date
 The grade of olive oil

26
OLIVE INDUSTRY

HARVESTING PROCESS
PROCESSING COMPANY/BUYER:
 Boundary Bend Olives

TRAVEL DISTANCE FROM FARM TO PROCESSING:

 Farm to Woodland (location of processing plant)
105 miles.

WHO WILL BE HARVESTING:

 EAS will be harvesting Site One, Site Two will be
subcontracted.

TRUCK & PACKING PROCESS:

 Processors have a very defined process for
tracking fruit, load tags are created for each load
of fruit and daily receival reports provided by the
processor as well a weekly and seasonal delivery
summaries for each contract.

HOW LONG IS LAG TIME:

 Loads are typically shipped every three hours
depending on crop load and processing schedule.
Harvest and shipping continues 24 hours a day
through the season.

27
OLIVE INDUSTRY

PAYMENT PROCESS • Late September - November

HARVEST

• December 31st
• 25% Of profits
FIRST • Fruit freight charges, processing fees, & CDFA deducted from
PAYMENT first payout.

• March 31st
SECOND
• 25% Of profits
PAYMENT

• June 31st
THIRD • 25% Of profits
PAYMENT

• September 31st
FOURTH
• 25% Of profits
PAYMENT

28
FINANCIALS

DEVELOPMENT SOURCES & USES

Sources Loan-to-Cost Uses

Debt 57.0% 4,000,000 Land Prep 0.5% 35,000
Lease-Up Income 0.6% 40,000 Irrigation 1.0% 70,000
Equity Investment 43.0% 3,015,000 Trees 0.9% 65,000
Total Sources 100.6% 7,015,000 Soft Cost 0.9% 65,000
FF & E 0.4% 25,000
Land 82.0% 5,750,000
Financing Assumptions Payments Ops Shortfall 13.4% 940,000
Term 30 Years Semi-Annual Misc 0.9% 65,000
Fixed Interest Rate 4.00% Total Uses 100.0% 7,015,000

29
FINANCIALS

TOTAL USE OF CAPITAL

Total Use of Capital

30
FINANCIALS
CASH FLOW MODEL

Year Stabilized Year 1 Year 2 Year 3 Year 4 Year 5

Cash Flow from Operations 204,412 (475,000) 5,000 345,000 545,000 555,000
Total Investment Costs (w/o Const. Interest) 6,065,000 - - - -
Gross Reversion Value - - - - 9,275,000
Selling Costs @ Reversion - - - - (185,000)
Unlevered Cash Flow 6,065,000 5,000 345,000 545,000 9,645,000
Unlevered IRR (Annual) 13.15%
Unlevered EMx (Annual) 1.61X
Free-and-Clear Return (CFO) 3.00% -7.24% 0.11% 5.28% 8.37% 8.50%
- Debt Service (145,000) (160,000) (225,000) (230,000) (230,000)
Cash Flow After Financing Avg. (620,000) (155,000) 120,000 315,000 325,000
DSCR (CFO) 1.55x (3.23x) .04x 1.55x 2.39x 2.42x

Total Investment Costs (w/Const. Interest) (6,035,000) - - - -

Gross Reversion Value - - - - 9,275,000
Selling Costs @ Reversion - - - - (185,000)
Permanent Financing Funding 4,000,000 - - - -
Permanent Financing Fees (20,000) - - - -
Permanent Financing Payoff - - - - (3,785,000)
Levered Cash Flow (2,675,000) (155,000) 120,000 315,000 5,630,000
Levered IRR (Annual) 21.93%
Levered EMx (Annual) 2.14X
Cash-on-Cash Return (CFAF) -0.05% -21.91% -5.41% 4.31% 11.25% 11.53%

31
FINANCIALS

OPERATING STATEMENT
Year 1 Year 2 Year 3 Year 4 Year 5
REVENUE

Farm Revenue 460,000 805,000 1,145,000 1,335,000 1,345,000

Operating Expenses
General Farming 390,000 245,000 210,000 165,000 190,000
Irrigation 80,000 80,000 80,000 85,000 80,000
Fertilizers 65,000 65,000 65,000 75,000 65,000
EXPENSES

Chemicals 90,000 70,000 70,000 75,000 70,000

Harvest 115,000 140,000 180,000 185,000 185,000
Service Contracts 10,000 10,000 10,000 15,000 15,000
Farm Mgmt 125,000 125,000 125,000 125,000 125,000
Taxes 25,000 25,000 25,000 25,000 25,000
Insurance 25,000 25,000 25,000 25,000 25,000
Capital Exp 5,000 5,000 5,000 5,000 5,000
Total Expenses 930,000 790,000 795,000 780,000 785,000

Cash Flow from Operations (470,000) 15,000 350,000 555,000 560,000

32
 XAVIER C. SANTANA
CEO, Managing Partner
T 925.226.2455
Xavier.Santana@calturas.com

BOYD S. WOODARD
CFO, MANAGING PARTNER
T 805.801.1449
Boyd.Woodard@calturas.com

33