ALP 16

Irrigation Company cannot operate without cash from Two Rivers Water Company. The additional
$9.5M needed for the dam repair project will come from special assessments of the shareholders of the
Irrigation Company. Board of Directors approved the increase in April 2010. The special assessment will
be collected in three parts. Part 1 was already collected ($428,600). Two Rivers Water Company is
liquidating other assets to generate $2.5M and is conducting a private placement of its shares to raise
an additional $5.OM to $40.01VI over the next year.
Collateral:
Two Rivers Water Company has hired Bishop - Brogden Associates, Inc. to complete an appraisal of the
assets of the Irrigation Company (with values given to both the before and after conditions of the dam
repair). The Irrigation Company would give the CWCB deeds of trust on all assets of the Irrigation
Company including water rights and land.
Discussion Points:
• Irrigation Company does not show ability to repay loan based on past assessments and
therefore wouldn't normally get a favorable recommendation to the Board for loan approval
• Nearly $10M loan would help lift the largest reservoir restriction in the state & would put ag
land back into production
• Loan would keep CWCB funds going towards water projects vs. the general fund