Nashville, Tennessee

MISSION & VISION• Primings Cigar Lounge & Bar is an establishment that

affords a few of life's pleasures accompanied with unequaled service….

• Primings will cater to those who appreciate the finer things in life. Whether it is a good cigar, a drink of fine scotch or a pairing of both…

• Primings offers a welcoming environment to those who may not be familiar with such things but have a desire to learn about the history, art, and science of cigars…

• Primings is not only committed to the satisfaction of our customers, but to educate in all facets of the industry.

THE PROBLEMPrimings Cigar Lounge & Bar will be a one-of-a-kind cigar lounge and bar that intrigues both to those who want a private club or just a comfortable and relaxing place to enjoy one of life's pleasures. Presently, in Downtown Nashville there is not an

exclusive cigar lounge and bar that is similar to what Primings will be in offering in terms of knowledgeable service, product selection, and exclusive membership offerings.

THE SOLUTIONCigar lover and passionate businessman Chase Lyle will open Primings Cigar Lounge & Bar …Primings’ philosophy is: Life is fast, slow down and enjoy the finer things. Enjoying cigars in the presence of other

enthusiasts is a truly bonding experience. A drink, whether on the rocks or perfectly mixed,

in addition to a first class ambiance, makes for a truly pleasurable encounter.

Cater to the most particular Cigar, Whiskey, and Cocktail aficionados.

Product or Service Product or Service Description Premium Cigars Premium, hand rolled cigars filled with the best

tobaccosCigar Accessories Cigar cutters, lighters, humidors,

humidification productsLiquor by the drink

Beer, wine, and liquor

Minimal Food Hors d'oueuvres, cheese boards,etcPrivate Memberships

Private rooms, conference room, private cigar locker

REVENUE OPPORTUNITIES

ATTENTION TO DETAIL walk-in humidor plush seating booth areas indoor balcony comfortable and inviting

lighting private-lounge feel

KEY OPERATIONAL TRAITS ALL staff to become Certified

Tobacconists Specialized Marketing

Private Labeling Music City Convention Center targeted

marketing Nearby Hotels targeted marketing

MARKET ANALYSIS Industry is developing a large consumer base

among young adults who are more likely to consume cigars than cigarettes

Cigar consumption has accelerated since 2009

Improving economic conditions have led to greater profit margins: from 3.6% of revenue in 2010 to 6.0% in 2015. private-lounge feel

The recent breakthrough in US relations with Cuba is encouraging for this industry

Revenue expected to increase at an annualized rate of 11.1% to $3.0 billion over the five years to 2020.

THE LOCAL OUTLOOKThe recent completion of the Music City Center has opened up of a wealth of downtown opportunities around this large convention center.

THE LOCAL OUTLOOK (cont.)One of the first initially-identified opportunities for leasing of an existing property in Downtown Nashville is a location in the “SoBro” or “South of Broadway” District.Within the past two years, SoBro has been the centerpiece of an initiative by City and Business leaders to remake the area in what is known as the “Master Plan” “Complete Streets”. Transit Re-route. Possible Convention Center Expansion. Overall attention to the Lafayette

neighborhood (among others).

COMPETITIVE ANALYSISKey Downtown Competitors: The Wheel Cigar Bar The State Room The Standard at the Smith

House

COMPETITIVE ANALYSIS (cont.)Key Downtown Competitors (cont.):

The Wheel Cigar Bar The State Room The Standard at the Smith HouseAddress 421 Broadway

Nashville, TN 372031530 Demonbreun Street, Nashville, TN 37203 167 Rosa L. Parks Blvd

Nashville, TN 37203Website thewheelcigarbar.com stateroomnashville.com smithhousenashville.com/Contact Info (615)390 6247 (615)457.1431 (615)254.1277Entity Type Cigar Bar Cigar Bar Private Cigar Lounge ClubProducts Offered/Description

28 premium cigar choices. A wide variety of premium Scotches, Whiskeys, Bourbons, and all the rest. Big wine and craft beer selection. Atmosphere Is upscale but casual.

Cigars. Billiards. Whiskey. Wine. Open cigar lounge, elegant music and event room and two outdoor patios. Whiskeys, liqueurs, Champagnes, cocktails and wines. Unique desserts, daily cheese boards and Frothy Monkey coffees.The cigar menu offers a range of rare boutique selections in addition to pre-embargo Cuban cigars and vintage examples that date back to the 1800s. The space has been selected to host the 2016 Cigar Smoking World Championship. Join us for daily specials as well as ‘Cigar Happy Hour’ every weekday until 7:00 PM (free cigar with every drink). The State Room is an evening experience in Nashville that is not to be missed.

The Standard at the Smith House is a restaurant, and a private club with cigar lounge..

Target Market Honky tonk district above the world Famous Wheel

Fremont Experience, Downtown Tourists. Private

Strengths Established, Location Impressive Website, product offering Established, LocationWeaknesses Appears to be have a “cheap/non-

premium” feel as might be described by a cigar connoisseur.

Brand new, un-established Private nature offers less exposure

COMPETITIVE ANALYSIS (cont.)The competitor, “The Standard at the Smith House” provides an interesting benchmarking opportunity as it is a private club and therefore matches many of the traits that Primings looks to implement.• A Maître d’ greets the guest and provides an access code to the “upstairs” area

where the private club is.• The ambiance :

• antique crystal chandeliers• dark rich wood “everywhere”

• They explained that they are not trying to be a ‘Cigar Shop’. They are simply a private club that offers cigars.

• Crowned Heads Headley Grange is at least one of the cigar types offered; Debonaire is another.

• Blanton’s Single Barrel represents at least one of the Bourbon’s that are offered there.

• The house was originally built in the 1840s it’s the only remaining townhouse in downtown Nashville.

• One large room contained a fireplace; apparently Andrew Jackson was married in front of the fireplace.

• Owner explains that he wants the club to offer a safe haven for his members to “… get away. Have business meetings, celebrate, and relax.” Therefore, no major promotion has been undertaken about the place. The owner said he’ll continue doing the same thing and stay true to the Club’s mantra and serve the members to the best of his ability.

FOUNDER & CEOThe idea for Primings was born overseas, while founder and owner Chase Lyle was deployed to Fallujah, Iraq with the United States Marine Corps in 2006. ... He began researching cigar bars and lounges that he could visit when returning home but found, to his surprise, that Nashville seemed to be sorely lacking in well-respected cigar gathering places….His experience serving overseas should make the managing of Primings a very doable proposition. Here are a few of the tasks carried out while serving: Managing the 118th Intelligence Group’s Self Inspection Program and

Management Internal Control Toolset (MICT) program Organizing and carrying out specific programs in Precise Point Mensuration (PPM),

Battle Damage Assessment, Weaponeering Assessment (BDA), Collateral Damage Estimates (CDE), and Weaponeering Training 41+ airman in targeting capabilities (Initial and Continuous) Developing and implementing training materials for incoming personnel and

dissemination

KEY MILESTONES

Start Date Duration (days) ManagerSecure Funding 12/22/2015 60 Chase LyleStart-up tasks, fees, licenses, etc. 12/22/2015 60 Chase LyleBuild-out/Renovation 3/1/2016 180 Chase LyleHire Staff 3/1/2016 180 Chase LyleAchieve $0.6MM in Gross Sales 8/28/2016 2,700 Chase Lyle

Milestones

Secure FundingStart-up tasks, fees,

licenses, etc.Build-out/Renovation

Hire StaffAchieve $0.6MM in Gross

Sales

Jan-15 May-16 Sep-17 Feb-19 Jun-20 Nov-21 Mar-23 Aug-24

ROI SUMMARY

Seeking $150K in debt financing

Planning to repay investors at the end of Year 5

Valuation based on EBITDA times a multiplier of 3.6, plus depreciated assets and inventory on hand

EXIT STRATEGYThe following alternatives provide potential exit strategies for investors:

RepaymentThe company repays its investors in full, consolidating ownership in the

Founder. Buyout

Over the time, Primings will entertain attractive buyout offers; then the Company negotiates and sells to the best deal.

MergerPrimings merges with another company to expand its market reach and

development capabilities. Business Ceases

The company liquidates all assets, pays its debts, repays investors and ceases business activities

OPERATIONAL FORECASTYear 1 Year 2 Year 3 Year 4 Year 5

Revenue $441,000 $502,250 $569,625 $588,000 $612,500Subtotal Cost of Revenue $121,052 $137,865 $156,359 $161,403 $168,128Merchant Credit Card Fees $13,230 $15,068 $17,089 $17,640 $18,375Total Cost of Revenue $134,282 $152,932 $173,447 $179,043 $186,503

Gross Margin $306,718 $349,318 $396,178 $408,958 $425,997Gross Margin/Revenue 69.55% 69.55% 69.55% 69.55% 69.55%

ExpensesLease $84,000 $85,680 $87,394 $89,141 $90,924Supplies $3,600 $3,672 $3,745 $3,820 $3,897Advertising, Marketing $18,000 $18,360 $18,727 $19,102 $19,484Telephone/Internet $3,840 $3,917 $3,995 $4,075 $4,157Business Liability Insurance $4,800 $4,896 $4,994 $5,094 $5,196Utilities $3,000 $3,060 $3,121 $3,184 $3,247Website (Hosting Fees) $600 $612 $624 $637 $649Maintenance $1,500 $1,530 $1,561 $1,592 $1,624Professional Services (accountant/attorney)$2,700 $2,754 $2,809 $2,865 $2,923Memberships $1,200 $1,224 $1,248 $1,273 $1,299Worker's Compensation $4,560 $5,207 $5,501 $5,804 $5,891Depreciation $18,000 $18,000 $18,000 $18,000 $18,000Payroll Taxes $11,628 $13,278 $14,029 $14,799 $15,021

Total Personnel $152,000 $173,565 $183,380 $193,450 $196,352Total Operating Expenses $309,428 $335,754 $349,129 $362,836 $368,663

Profit Before Interest and Taxes ($2,710) $13,563 $47,049 $46,121 $57,335EBITDA $15,290 $31,563 $65,049 $64,121 $75,335Interest Expense $5,917 $5,161 $4,356 $3,499 $2,587Taxes Incurred $0 $0 $0 $0 $0

Net Profit ($8,627) $8,403 $42,693 $42,622 $54,747Net Profit/Revenue -1.96% 1.67% 7.49% 7.25% 8.94%Income Statement Assumptions: (1) Depreciation is based on 10 years; (2) Total payroll taxes are 7.65%; (3) Company taxes are based on 0% due to LLC status.

Pro Forma Income Statement

DISCLAIMER

This document is intended to provide a general guide only and does not deal with every important development, legislative or regulatory requirement. It has not been independently verified. We make no representation or warranties that it is complete or that it remains unchanged. You should consult your professional advisors where appropriate and conduct your own inquiries and investigations. It does not constitute legal, accounting, financial taxation, or investment advice, or a commitment to arrange or underwrite any facility by TelMesh LLC. This information is intended only for the use of the addressee and is confidential. Disclosure, reproduction or use by any person other than your officers, employees or professional advisors is strictly prohibited.

CONTACT INFORMATION

Chase LyleAddress: 2039 L and N Court, Goodlettsville, TN 37072Phone: 615-566-4876Email: primingscigar@gmail.com